In recent years we’ve seen a sharp rise in enterprise mobile data usage. More and more businesses are realizing the benefits of implementing mobile devices in the workplace, employees are travelling more often, field representatives are taking advantage of tablets and smartphones while on-the-go, and new business-centric mobile applications and devices are constantly being developed.
A new study conducted by Compass Intelligence, a metrics-based market research and analytics firm, reveals that the average price per GB on high volume cellular data plans will fall by 55% between 2014 and 2018. However, since the demand for mobile data is rapidly increasing amongst business users, this price cut will not reduce the average enterprise mobile data spend. As a result, increasingly more businesses are exploring alternative cost-minimizing mobile data solutions. As businesses adopt these alternative mobile data solutions, Compass projects that businesses will save roughly $8.5 billion in 2020.
What sorts of options will business turn to? Here is a quick overview of the best potential alternative mobile data solutions for businesses.
1. Wi-Fi First MVNOs
Wi-Fi first MVNOs such Scratch Wireless drive their users’ traffic over Wi-Fi networks, falling to carrier mobile data networks only when Wi-Fi is unavailable. This provides a huge benefit to businesses from a cost-minimizing perspective. Employees often forget to switch to Wi-Fi networks when they are available, which results in unnecessarily high mobile data usage by employees. With a Wi-Fi first service, managers will not have to worry about their employees using too much data, because their company’s devices will automatically default to Wi-Fi networks.
It should be noted, however, that there are currently some barriers to Wi-Fi first services. For example, because many Wi-Fi networks require passcodes, devices which use Wi-Fi first services often have issues connecting to networks, and are often unable to default to Wi-Fi.
2. Enterprise MVNOs
Another option for businesses is to purchase a mobile data plan from an enterprise MVNO like DataXoom. These sorts of mobile data providers purchase mobile data from mobile data from major carriers a wholesale rates, and repackage the mobile data in plans suitable to businesses. These MVNOs often have flexible pricing terms which are more suitable to business users, limited contractual obligations (businesses don’t like long-term contracts), and no (or low) hidden fees such as mobile data overage charges. As the demand for mobile data increases amongst businesses, we are sure to see more and more companies purchase plans from enterprise-focused MVNOs.
3. Alternative device policies
With a greater need for cost-cutting mobile data solutions, we are likely to see companies change up their device management policies. For example, some companies may adopt a BYOD policy, and encourage employees to bring their own personal devices—while this will not directly impact the per GB cost of mobile data, it will reduce the amount that businesses spend on hardware for employees.
We may also see more companies equipping their employees with mobile hotspot devices, rather than adding each individual device to the company’s mobile data plan. Many mobile data plans become costlier with each additional device. Equipping employees with individual mobile hotspots will cut down on the number of devices per plan—employees can simply tether their mobile devices to their hotspots.
Regardless of the mobile data solution your business adopts, one thing is clear—due to exploding traffic volume, businesses need new, more innovative options for mobile data. DataXoom is an MVNO that provides mobile data solutions designed exclusively for business, with affordable pricing options, no long-term contracts, and no early termination fees. Interested in how DataXoom can meet your mobile data needs? Drop us a note at sales@dataxoom.com.
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