Profiles Advisory Group

Net/Net Considerations between Corporate Liable (CL) and Individual Liable (IL) for Wireless Carrier Contract

Bruce Vienneau — Sat, 01 Oct 2011 06:35:14 +0000

Net/Net Considerations between Corporate Liable (CL) and Individual Liable (IL) for Wireless Carrier Contract

Attributes of Corporate Liable (CL) plans:
• Overall Control of carrier(s) contract(s)
o Development of RFP
o Carrier bid requests
o Evaluating vendors
o Negotiating carrier contracts
The above should lead to:
• Bulk Purchasing discount opportunity plus new devices every 18-24 months
• Pooling of minutes
• Improved Security across enterprise (Corporate control)
• Asset Protection and ownership…It is likely not beneficial to your enterprise for the telephone numbers your client’s are conditioned to call, to be owned by former employees (IL scenario)
• Consistent ownership and management control of Mobility Policy
• Corporate control of which devices are allowed on enterprise network
• Corporate control setting criteria and billing for optional services (downloads)
• Corporate contracts can save 20% and more
• Once contract is negotiated and optimized ongoing corporate control through Wireless Expense Management (WEM) outsourcing/out tasking could be considered
• WEM solutions can provide automation, centralization and visibility into wireless usage, trends, and spend, while expediting procurement, help desk services, bill pay processes, optimization and cost avoidance services.

Attributes of Individual Liable (IL) plans:
Advantage may occur if corporate policy requires the employee to pay for a large portion of the monthly recurring and equipment charges. In this way the business may mitigate gains otherwise realized by pooling, volume negotiated contracts, ETF waivers, equipment/device/accessory and feature discount offsets under the CL model.
• IL usually makes sense when only a few employees have mobile devices
• Employee enjoys full selection of available devices
• Financial risk and burden on the individual
• User reimbursement plan and methodology usually required
• Limited Mobility Policy oversight
• Security risk less controls
• Generally more expensive
Other important issues and thoughts to consider:
• CL combined with wireless expense management (WEM) solutions will provide automation, centralization and visibility into wireless usage, trends, and spend, while expediting procurement, help desk services, bill pay processes, optimization and cost avoidance services.
• Optimizing pooling plans will minimize your cost per device while maximizing your device usage, super-sizing your savings potential. Combining Wireless Expense Management (WEM) cost avoidance/optimization with cost/time efficiencies will produce significantly better results than the $30 per device savings described in the scenario above.
• Corporate control of your cell phones/smartphones/wireless devices. It is likely not beneficial to your enterprise for the telephone numbers your client’s are conditioned to call, leaving with former employees (IL scenario).
• A centralized corporate policy and an automated approval of all wireless assets will permit only devices into corporate inventory that are useful to your employees and commensurate with their roles and responsibilities.
• Better carrier or WEM Help Desk support providing time/cost efficiencies not received by the IL customer who will have to remain on the phone to resolve the issues on which they require assistance.
• Possible security issues. An IL device connected to the corporate network will be monitored and managed by either your WEM solution provider or internal IT. Without CL corporate control, the device will not be approved for access to the company network. The concern is the employee owns the wireless equipment/smart phone/cell phone; however, the company has ownership of all required corporate data and applications. Proprietary info and protecting corporate network infrastructure will be increasingly difficult exasperated by numerous IL users possibly given such critical access.
Our analysis concludes:
CL places the load of wireless management on the company’s shoulders. However, that is really the only disadvantage. For the CL program to be truly cost effective, it needs to be managed either with internal resources utilizing an automated WEM solution or outsourced to a WEM solution provider. Centralization and automation of the life-cycle management of your wireless assets is critical to the cost/usage/time optimization and efficiency required to provide maximum savings ensuring the Corporate Liable advantage.
As information is power, the advantage can be yours. For global clients of ours the CL advantage makes sense for their telecom team. Corporate Liable is likely an authentic key to your company’s telecom cost reduction strategies.
About Profiles Advisory Group:
Profiles Advisory Group is a consultancy specializing in global telecommunications sourcing, procurement and contract negotiations. Our primary focus includes global WAN, wireless, wireline, audio/video conferencing services. Each client scenario is unique, determined by current services, technology needs, contract cycle, pricing, terms and conditions. Our industry expert resources deliver market leading rates, terms and conditions for clients. Clients benefit from years of insider experience which is put to work on their behalf. Services that we offer include:
• Assessment and Benchmark
• Technology review of existing and planned for services
• Sole source negotiation
• RFP demand set creation
• Multi carrier RFP development, bid review and evaluation
• Negotiate contract terms and conditions
• Wireless Optimization
• Telecommunications Expense Management (TEM) RFP selection process
www.profilesag.com

Profile AG believes The Yankee Group gets it right on AT&T T Mobile merger…saying “NO”.

Bruce Vienneau — Sat, 06 Aug 2011 06:59:09 +0000

This is additional follow up on AT&T wireless and T-Mobile’s proposed merger. We still believe it to be anti-competitive and only self serving to AT&T and Verizon Wireless. It creates a duopoly that the consumers and businesses will regret for many years to come. Choices are paramount to keeping mobility options competitive for technology as well as pricing and plan options.

Here is the Yankee Group report:

http://www.wirelessweek.com/News/2011/08/yankee-group-pans-ATT-t-mobile-merger/

Happy reading!

About Profiles Advisory Group:

Profiles Advisory Group is a consultancy specializing in global telecommunications sourcing, procurement and contract negotiations. Each client scenario is unique, determined by current services, technology needs, contract cycle, pricing, terms and conditions. Our industry expert resources deliver market leading rates, terms and conditions for clients. Clients benefit from years of insider experience which is put to work on their behalf. Services that we offer include:
• Assessment and Benchmark
• Technology review of existing and planned for services
• Sole source negotiation
• RFP demand set creation
• Multi carrier RFP development, bid review and evaluation
• Negotiate contract terms and conditions
• Wireless Optimization
• Telecommunications Expense Management (TEM) RFP selection process
www.profilesag.com

Wireless Management and Procurement for Medium sized Businesses

Bruce Vienneau — Sat, 30 Jul 2011 07:00:07 +0000

As our engagements expand within the Wireless management and procurement efforts, we are seeing a common thread throughout most companies. Mobility is a major area of concern for controlling expenses in all organizations today. Many medium size businesses are allowing employees to use their personal smartphones and tablets for work-related purposes because of enormous benefits in productivity and real-time connectivity. Unfortunately, many Medium size businesses are neglecting to institute adequate mobility policies to ensure that those devices don’t run out of control.

Wireless devices, including smartphones and tablets, should only be introduced into the corporate environment with proper policies, management and compliance capabilities in place to ensure that expenses remain in check.

Here are some mobile-specific areas to keep in mind:

• A clear plan for auditing invoices before costs spiral out of control
• Methodology for setting wireless usage thresholds you can manage
• An automated inventory to capture the necessary detail
• Plan for Tablets – While the majority of IT efforts to manage tablets have been focused on application and security management, it is critical to drill down into what impact these devices will have on a business’ bottom-line.
• Organizations are realizing the benefits tablets have on any number of departments. Left unchecked, however, associated expenses, such as data overages for high bandwidth video streaming, are upping the ante from a cost management perspective.
• Enlist a partner firm with specific expertise who can negotiate market leading rates and optimization plans as well on-going management resources

Our client engagements are consistently resulting in 15-35% savings across wireless contract renegotiations and additional savings from ongoing TEM resource oversight.

About Profiles Advisory Group:

Thoughts around Global Mobility Sourcing RFP’s

Rob Kraft — Sat, 04 Jun 2011 06:30:46 +0000

Global Mobility Sourcing/RFP considerations

Our client engagement experiences as well as true global carrier readiness have led us to the following list of considerations and concerns about the current chances for a successful Global Mobility RFP and procurement initiative.

Here are our considerations that should influence an approach to this challenging process.

Creation of a global mobility policy and process across carriers, plans and devices world-wide
Highest level buy-in from Senior leadership on the value and opportunity this represents
Technologies identified/ Security implications review/ Corporate assets protection plan
Enterprise-wide global inventory detailed and defined by price and plan type
Identification of any and all truly global MDM players
RFP that addresses broad spectrum of your global needs

As anyone can realize from this high level set of issues…risks abound. Here are our views of the possible negative outcomes of a global MDM RFP initiative.

Project loses internal supports and collapses under its own weight
Significant loss of savings opportunity within countries and regions
Regional factions resist initiative (no buy-in)
Carriers fall short on ability to truly deliver as promised (most if not all are truly not ready)
Multiple contracts and multiple bills still required
Many carrier partnerships are weak right now
Reliance on Tier 2 providers
Project management requirements to implement can be overwhelming to most IT staffs

Our current recommendations are as follows:

Don’t expect any single carrier to bid the entire global view with one contract
Expectation should be to consolidate/reduce total number of carriers
Outside resources exist to lead inventory development
Highly unlikely clients can compare savings across multiple global carriers
Consider outside expertise for procurement, implementation and ongoing management of all mobile devices

Update on antitrust probe of AT&T, T-Mobile (posted, 4/02/2011)

Bruce Vienneau — Thu, 05 May 2011 15:01:53 +0000

Investigation is expected to intensify as realization that 80% of US wireless would be shared by 2 carriers… AT&T Wireless and Verizon Wireless.
AT&T’s leaderships opinion that this somehow protects our national interests is questionable. This $39 Billion dollar acquisition delivers much more than that for AT&T and Verizon.
Our opinion is that this creates a duopoly with fewer choices for the consumer. With pricing power in the hands of 2 carriers it would be difficult to envision a truly competitive marketplace. Many clients already find it extremely complicated to receive truly competitive rates and plans. With exploding growth, the proliferation of smartphones and tablets figuring the ideal plans requires expertise not resident in most companies. With this additional consolidation the only beneficiaries will be the 2 players remaining dividing up the mobility marketplace. Given this power it will feel like “back to the future” for consumers and businesses.

About us:

Profiles Advisory Group is a consultancy specializing in global telecommunications sourcing, procurement and contract negotiations. Each client scenario is unique, determined by current services, technology needs, contract cycle, pricing, terms and conditions. Our industry expert resources deliver market leading rates, terms and conditions for clients. Clients benefit from years of insider experience which is put to work on their behalf. Services that we offer include:
• Assessment and Benchmark of both wireless and wireline services
• Technology review of existing and planned for services
• Sole source negotiation
• RFP demand set creation
• Multi carrier RFP development, bid review and evaluation
• Negotiate contract terms and conditions
• Wireless Optimization
• RFP selection process for Telecommunications Expense Management (TEM/WEM)
www.profilesag.com

HOW TO SELECT BEST IN CLASS TEM and or WIRELESS/MOBILITY EXPENSE MANAGEMENT PARTNER

Bruce Vienneau — Wed, 27 Apr 2011 21:36:05 +0000

Gartner predicts that 80% of enterprises will overspend on wireless services through 2014. With that factoid, you would be wise to get a grip on mobility spending. The sooner you get mobility spending under control, the more you save and the greater your advantage.
More clients seeking assistance with selecting Wireless/Mobility Expense Management and TEM providers by out-tasking the RFP process. Essential is having a clear strategy, a proven process, and intimate knowledge of a client’s current inventory. Once detailed inventory process is accomplished access to current market-leading prices, the multitude of wireless/mobility plans, terms and conditions that make the most sense based on your current and evolving needs become easier.
Many firms struggle with the “how to” of choosing the best partner to outsource their Wireless/Mobility Expense Management. It has the potential to have a significant impact on your business by improving the quality of operations and administrative services along with reducing fixed and variable costs. Establishing the right outsourcing solution can result in substantial optimization of critical business functions like your Wireless/Mobility expenditure.
Some important considerations follow:
• Ability to Automatically Enforce Mobile Policy
• Knowing best provider(s) to match your firms needs
• Central approach to Managing Wireless Expenses
• On-going and immediate Optimization of Wireless Plans
• Plan to Reduce Wireless Helpdesk Burden
• Dashboard for Improved Expense Visibility

Within this practice area, your partner should assist their clients with the strategic business expertise and operational experience needed to create the foundation for successful sourcing solutions and partnerships. When engaging in this important sourcing relationship, it is critical to establish value now and flexibility for the future.
From the needs assessment to implementation, your partners guidance and insider knowledge should always vastly improve the leverage on your side of the negotiating table. Their expert capabilities and in-depth knowledge in all areas of TEM/WEM become your advantage with every step of the outsourcing life cycle. With so many outsourcing options and a vast array of TEM/WEM suppliers, your partners in-depth understanding of the industry is an essential element in analyzing the cost and risk, implementing the right sourcing solution and minimizing the impact to business. The result, increased process efficiencies and deep carrier contract savings that directly impact your bottom line and further increase profitability.

ABOUT US:

Profiles Advisory Group is a consultancy specializing in global telecommunications sourcing, procurement and contract negotiations. Each client scenario is unique, determined by current services, technology needs, contract cycle, pricing, terms and conditions. Our industry expert resources deliver market leading rates, terms and conditions for clients. Clients benefit from years of insider experience which is put to work on their behalf. Services that we offer include:
• Assessment and Benchmark of both wireless and wireline
• Technology review of existing and planned for services
• Sole source negotiation
• RFP demand set creation
• Multi carrier RFP development, bid review and evaluation
• Negotiate contract terms and conditions
• Wireless Optimization
• Telecommunications Expense Management (TEM/WEM) RFP selection process
www.profilesag.com

Wireless Contract Negotitions…Choosing the right partner

Bruce Vienneau — Sat, 16 Apr 2011 07:00:48 +0000

The wireless carriers benefit greatly from clients who cannot find the necessary time to analyze, evaluate and optimize the constantly changing needs within their ongoing wireless spend. Clients commonly over- pay for “unused” minute’s as well “overage” minutes. Add the current complexity of rapidly expanding data plans and these costs across an enterprise-wide spend quickly grow out of control.

The negotiations aspect of any sourcing partner’s offer must be coordinated with any wireless optimization in order to assure market-leading rates terms and conditions across each price element of your specific wireless spend. Carrier billing formulas and formats can be very confusing and change frequently. Your selected advisor/partner –must deliver a detailed and proven process for sourcing and negotiating for all carrier mobility services. This eliminates any guesswork because their database of current carrier offerings should contain the market-leading pricing that exists in today’s marketplace.
As a starting point, your chosen partner should offer proven methodologies for assessing/benchmarking and inventorying your current wireless spend. A critical element of any output should depict the optimum process to capture savings, terms and conditions and on-going ease of management. This would serve to untangle the complicated carrier wireless billing formats, ever-changing carrier rate plans and features as well as each end user’s volumes for wireless voice and data consumption. Your partner’s process must break out the most basic and fundamental carrier pricing elements allowing you to show your exact spend detail. It is then essential to inventory your entire current carrier(s) spend for each and every existing subscriber line and all associated plans usage, discounts and features, against a database of the most current price points on comparable spends in the marketplace. This would deliver an enterprise-wide strategy focused on pricing, terms and conditions with the necessary flexibility at the lowest possible cost.
This would be delivered with the following goals in mind:
• No carrier or major technology migration unless otherwise requested by a client
• Address immediate opportunity to deliver maximum cost reductions
• No impact to end-users
• Tightly coupled optimization and negotiations process to deliver market-leading mobility plans and pricing
• A precise inventory and volumes projections against which your partner can establish the very best pricing plan for all subscriber lines within your enterprise
• A depth of knowledge at a granular level that extends well beyond the typical reporting carriers currently provide

The next posting is planned to cover “Wireless/Mobility Expense Management RFP Offer”…choosing the right partner.

About us:
Profiles Advisory Group is a consultancy specializing in global telecommunications sourcing, procurement and contract negotiations. Each client scenario is unique, determined by current services, technology needs, contract cycle, pricing, terms and conditions. Our industry expert resources deliver market leading rates, terms and conditions for clients. Clients benefit from years of insider experience which is put to work on their behalf. Services that we offer include:
• Assessment and Benchmark of both wireless and wireline
• Technology review of existing and planned for services
• Sole source negotiation
• RFP demand set creation
• Multi carrier RFP development, bid review and evaluation
• Negotiate contract terms and conditions
• Wireless Optimization
• Telecommunications Expense Management (TEM/WEM) RFP selection process
www.profilesag.com

Telecom Contract Negotiations…The Business Case to Out Task

Bruce Vienneau — Thu, 07 Apr 2011 06:45:45 +0000

Telecom Contract Negotiations…The Business Case to Out Task

…Considered Out-Tasking the Sourcing, Procurement and Contract Negotiation of Global Enterprise Network Services?

…Gartner’s report claimed Companies leave 15-20% of potential additional savings on the negotiating table when professional negotiating teams are not used. That’s $150,000-$200,000 per million dollars spent annually. We see that and more in our engagements all the time.

Here are the final three of the nine important reasons to consider out tasking this significant corporate expenditure. They are as follows:
• Seventh consideration… The RFP process adds desirable leverage to any contract negotiation. A foundation for a successful RFP is to have a thorough and accurate demand set of all telecommunication services in use by your company. Most companies are challenged to compile an accurate and complete demand set of all services their firm uses, particularly in common terms that all telecommunication providers will understand. Telecommunications providers are equally challenged, due to system complexities and accounting, to compile an accurate and complete demand set of the services they provide to your firm. Development of a comprehensive demand set is best done by someone who knows carrier price models for these services and knows how to represent a company demand set in a format and structure that is readily able to be priced by telecommunication providers and in an “apples to apples” comparison. An accurate portrayal of current and future demand set also ensures contractual commitments will not be overstated leading to future shortfalls against contracted revenue commitments.

• Eighth consideration… Managing telecommunication providers through the sourcing and contracting process is described by many companies with terms including “painful, drawn out, our carrier doesn’t get it, frustrating, time consuming” and others you can add to the list. It doesn’t have to be that way! Use of a third party out-task provider can eliminate all those internal frustrations. It doesn’t mean the firm won’t experience some of the same challenges, but knows quickly how to deal with them in a way that delivers you the most leverage and benefit in the shortest amount of time.

• Our ninth and final consideration… When selecting an out-task firm for sourcing, procurement and contract negotiation certain things should be evident. The firm should bring an insider’s perspective to the negotiating process ideally having resource that has insider carrier experiences. The firm should maintain an extensive database of competitive carrier contracts. The firm should have a demonstrated track record of shifting leverage from carrier advantage to client advantage. The firm should have a demonstrated track record of delivering significant cost reductions and improved contractual terms. The firm should have a track record of making and keeping project plan timeline commitments. The firm should be willing to guarantee their work.
We hope this helps with your decision of whether to out-task the sourcing of your global telecom carrier contract negotiations!
About us…
Profiles Advisory Group is a consultancy specializing in global telecommunications sourcing, procurement and contract negotiations. Each client scenario is unique, determined by current services, technology needs, contract cycle, pricing, terms and conditions. Our industry expert resources deliver market leading rates, terms and conditions for clients. Clients benefit from years of insider experience which is put to work on their behalf. Services that we offer include:
• Assessment and Benchmark
• Technology review of existing and planned for services
• Sole source negotiation
• RFP demand set creation
• Multi carrier RFP development, bid review & evaluation
• Negotiate contract terms and conditions
• Wireless Optimization
• Telecommunications Expense Management (TEM) RFP selection process

www.profilesag.com

AT&T aquisition of T-Mobile USA

Bruce Vienneau — Sat, 02 Apr 2011 15:23:32 +0000

AT&T to acquire T-Mobile USA

AT&T is looking to acquire T-Mobile in a $39bn deal. This will mean 80% of AT&T revenues will be derived from wireless services.

Is this setting the stage for the duopoly of the wireless services providers? What is the future for Sprint? Does it feel like “back to the future” reflecting AT&T/VZB dominance in global wireline services?
Our opinion…Good for AT&T/Verizon, good for Wall Street(?), Not good for consumers of their services.

“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said Randall Stephenson, AT&T Chairman and CEO.
Our opinion…This is not about our nation’s future but about eliminating competition and the potential return of more monopolistic behaviors like full control over future pricing.

Years of speculation regarding T-Mobile USA’s future ended yesterday with the surprise announcement that AT&T is to buy the embattled telco for $39bn.
Rumors regarding the possible sale of T-Mobile USA have been circulating for years but almost always worked on the assumption that the telco would unite with a smaller operator, such as Sprint or, more recently, Clearwire.
To read on… http://www.businesswire.com/news/home/20110320005040/en/ATT-Acquire-T-Mobile-USA-Deutsche-Telekom

About us…

Profiles Advisory Group is a consultancy specializing in global telecommunications sourcing, procurement and contract negotiations. Each client scenario is unique, determined by current services, technology needs, contract cycle, pricing, terms and conditions. Our industry expert resources deliver market leading rates, terms and conditions for clients. Clients benefit from years of insider experience which is put to work on their behalf. Services that we offer include:
• Assessment and Benchmark
• Technology review of existing and planned for services
• Sole source negotiation
• RFP demand set creation
• Multi carrier RFP development, bid review & evaluation
• Negotiate contract terms and conditions
• Wireless Optimization
• Telecommunications Expense Management (TEM) RFP selection process

www.profilesag.com

Buyer beware – Evaluate pros and cons of bundling wireless and wireline agreements

Bruce Vienneau — Sun, 27 Mar 2011 08:00:05 +0000

Evaluate pros and cons of bundling wireless and wire line contracts before executing a new telecommunication agreement. Evaluating whether or not to bundle a wire line services contract with a wireless services contract requires careful consideration. As with any telecommunications contract you must ask yourself what is in it for my organization. Remember carriers always write agreements that favor their side of the negotiating table. Typical wire line services contracts have contract duration and minimum revenue commitments that must be maintained. Failure to achieve the time frame and/or the revenue commitment can result in shortfall penalties that you are liable for.

Wireless agreements typically also have contract duration and minimum revenue commitments. A difference between wire line and wireless agreements is that wireless agreements typically provision a discount level that is earned based on the revenue achieved. Spending more equates to achieving a higher discount while spending less will lower the discount. The penalty for obtaining a lower revenue threshold can be a couple of points lost in discounting. Some providers propose bundling wireless and wire line in order to offer you more favorable rates or terms. Wireless and wire line becomes a bundled agreement. Under this type of agreement wireless commitments now fall under a common revenue commitment meaning a decline in revenue doesn’t only lower a discount, it is now aggregated in the revenue commitment and you could be subject to financial penalties rather than a lowering of discounts.

As in any telecommunications contract negotiation, buyers beware.