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