We realize that sometimes wireless expense management can seem rather confusing. Here are 3 of the most asked about terms/acronyms in our industry: [Read more…] about Useful Wireless Expense Management Definitions
Verizon Changing Billing Options
In June, Verizon is changing the format of Business bills. The billing will be summary billing; you can see the detail on the website through your business login. If you need help navigating the site, feel free to contact us and we can walk you through the new changes. [Read more…] about Verizon Changing Billing Options
Renegotiate Your Way to a Lower Wireless Bill
We seem like we have been in RFP-ville lately….many of our customers are going through the renegotiating process and it is indeed a learning experience. This blog post will be part of a series and offer some tips for before, during and after the process in order to have you avoid some pitfalls you might otherwise plunge down.
First: You’re In Control
This is the only time in a few years when you actually have leverage with the carrier. Take advantage of it and USE IT! We love to do RFPs and really see the results from a job well done. Don’t let the carriers tell you something can’t be improved. It always can, especially if you are willing to do some good negotiating. Laugh a little; trust us, there will be plenty to laugh about.
Second: Do your homework
Learn everything you can about the competition, the industry and offerings to other customers. This is where we really make a difference. As a WEM firm, we see across all carriers and many customers, and while we cannot provide specific data on specific customers or carriers due to confidentiality agreements, we can guide and provide many industry suggestions on what offerings are out there to similar type customers. You can’t believe what a difference it makes just to have us sit at the table and keep the providers honest.
Third: Ask for as much as you can
You won’t get better discounts if you don’t ask for things. Ask for as much as you can, the carriers can only say “no” and will often say OK or counter offer. The good ones will negotiate a clever term or a creative way to give you what you need and also be able to satisfy their finance team requirements. Often it can be all in the framing of the issue. Additionally, there are so many ways to save money on the bill and several buckets carriers can dip into to provide you with creative credits. Ask for them!
Fourth: Know your numbers, then ask for stuff AGAIN
If your corporate budget requires a 20% reduction in spend, make sure to let the carriers know your numbers and how far off they are. Frequently, with a good business case, they can go back to their pricing folks and get stuff if they know it will take “$X”. We had a great relationship with a carrier working on an RFP and we simply said, listen, we need $X to get the job done. It was a significant number, but it was an accurate one and it worked. The carrier came through, got their contract executed and we got a great deal for the customer.
Fifth: Actually read the final documents before you sign them
It will never cease to amaze us how many times the language you thought you agreed to is not the language that ends up on the final agreement. Be sure to read it, get clarification and make ANY changes you believe need to be made to insure your rights are protected.
Finally, HAVE FUN
While this is a long process if done properly, be patient and use the time for reviews and processing to marinate and insure you have deal you want. Then, step back, make sure the changes are implemented and reap the financial rewards.
Taxes, Fees and Assessments, Oh My!
Ever wonder what those extra charges are on your account?
A few of our clients did too, so we thought it would be extremely helpful to share with everyone how all those extra fees end up on your bill every month. Let’s get started:
The CITA (cellular telephone industry association) has a great overview of the extras and where they came from. [Read more…] about Taxes, Fees and Assessments, Oh My!
What Should Businesses Pay for Wireless Service?
How the heck do you find wireless industry standard pricing? Well, you don’t – it’s close to impossible unless you know someone directly in the business.
Unless you have the help of a WEM provider, searching for this data can be difficult to get data on market trends as well.
The CTIA does have some great stats available (in fact some we’ve even quoted in previous posts).
So why isn’t standardized pricing published or listed anywhere? Many will tell you that each deal is different with it’s own unique circumstance. Because each wireless agreement carries many thousands of variables, it is rather difficult to properly claim a “standardized” rate structure or pricing plan.
While there is a great deal of truth in this argument, there still is a handy little metric to determine a standard price per wireless user.
Average Revenue Per User
ARPU (Average Revenue Per User): a measurement by the carriers to understand the value of their subscriber base. It’s widely used as a metric to compare to other carriers.
It is the measurement of the average dollars spent per month by each subscriber across their subscriber base which is calculated by taking the total revenue (this number includes taxes, fees, assessments, etc and is the total amount the user pays, not just the access fees as are so often quoted to customers by carrier reps) and dividing it by the number of total users.
For example, if carrier X has 100,000 subscribers and the revenue for these subscribers is $5,000,000, then the ARPU is $50.
How to use ARPU
Carriers like users with higher ARPUs (from data plans or feature charges and sometimes from overage charges, but usually not in the case of Bill Police customers) and you can use that as a bargaining tool.
You can use ARPU as a gauge to understand how your company stacks up to the rest of the industry in average subscriber spend.
Here are some recent data points on current carrier ARPU:
- TMobile ARPU is: $42.66 per subscriber
- Sprint ARPU is $42.57 per subscriber
- AT&T ARPU is $50.26 per subscriber
- Verizon ARPU is $43.52 per subscriber
Some Interesting Resources on ARPU
Here is an interesting article on cost per minute. It is from 2009 so a bit dated, but it does give some interesting insights into Cost Per Minute.
Here’s an important excerpt: “If you’re like most cellphone users, you probably think you’re paying less than 10 cents per minute for calls. Think again. When you do the math, you find the average cellphone customer actually pays more than $3 per minute, according to a report being issued this week by the Utility Consumers’ Action Network, a San Diego consumer advocacy group…”
Bottom line: Most telecom customers are buying more product than they use, and that’s pure gravy for service providers.
Keep defending your rights! We can help you sort through the mire to find out what makes sense for your organization, but being informed yourself is a good start.