Business Mobile Costs: Are You Paying Too Much?
A new report claims that the average business in the UK spends around £1272 per mobile device each and every year. On the surface, that doesn’t really seem so bad, but when we delve in a little deeper and break down that cost into its separate constituents, we realise that many of us are actually paying much more than we need to be. That £1272 per business mobile can be broken down into the following:
Operator Fees – 36 percent of the total cost
Hardware – 21 percent of the total cost
Unexpected Bills – 14 percent of the total cost
Security – 11 percent of the total cost
IT Resources – 10 percent of the total cost
Miscellaneous – 8 percent of the total cost
There are two aspects here that are particularly surprising. The first, of course, is operator charges. Towards the end of last year, Ofcom reported that the Government had increased the costs for operators to use the spectrum from a total of £64.4 million to a whopping £199.6 million. When the policy is rolled out in full from October 2016, it is expected that business mobile and consumer mobile users will be hit with additional fees as the operators attempt to reclaim at least a portion of the costs.
The second aspect that is very concerning is that, on average, 14 percent of our total business mobile spend is being used to cover unexpected bills. In fact, larger companies may be seeing nearly 22 percent of their total business mobile spend go on surprise calls, shock data usage fees, and so on. And this isn’t necessarily about cost exclusively. It’s about the fact that by paying over the odds for business mobiles and for any other mobile devices we own, we’re not making full use of our business mobile budget.
Maximising Your Business Mobile Budget
There are two ways that you can effectively maximise your business mobile budget to get the most from your devices. The first is to ensure you’re not paying more than you need to for your overall service, by comparing business mobile costs before signing on the dotted line. Taking control of the costs at the initial stage of device ownership helps to prevent any nasty surprises in the future. The second way is to understand more about true cost of ownership (TCO) and analysing which investments provide a more significant return. Keeping your business mobile costs down isn’t as challenging as you may think.
Changes in the Way we Work Shaping Future of the Internet
Until recently, developments in connectivity in the UK have most definitely shaped working patterns and preferences. Consider, for example, that in 2011, BT first started offering fibre-to-the-premises (FTTP) services in Milton Keynes, which was eventually expanded to most of the country. Just 3 years later, in 2014, the Government altered legislation relating to flexible working hours, meaning that everyone would now have the right to make a request. It was reported at the time that more than 20 million people had already made requests for more informal working patterns or more flexible working hours.
Coincidence? Unlikely. Faster internet speeds offered by FTTP meant that it was now possible for many people to conduct their day-to-day activities from alternative locations. However, things are changing, and today advances in business internet are more likely to be shaped based upon our evolving needs and requirements. Services such as Ethernet in the First Mile (EFM) and leased lines, for example, have undoubtedly been born – at least partly – from our need for a more reliable, symmetrical connection.
Symmetrical Internet
One of the highlights of leased lines is that they offer a symmetrical, rather than an asymmetrical, connection. This means that, unlike ADSL lines which typically offer faster download speeds and slower upload speeds, leased lines offer the same upload and download speeds which are unaffected by activity. The reason leased lines offer this is to meet our ever growing and changing requirements.
Leased lines with symmetrical upload and download speeds can, for example, facilitate the following:
voIP services
The growing use of voice over IP services (a whopping 80 percent of UK businesses were utilising voIP services, in one way or another, in 2013), means there’s now a greater need for symmetry and reliability to ensure continued quality of service from both an audio and visual viewpoint.
Cloud Computing
Today, more than two thirds of small and medium sized business in the UK are using cloud computing, enabling better file storage, quick and easy sharing, and improved security. Rapid uptake of ‘the cloud’ means that leased lines and EFM have never been more important.
Collaboration
As we’ve already touched on, more and more people are requesting flexible working hours or flexible patterns, increasing the need for collaboration between multiple sites. Leased lines are helping to facilitate flexible working by boosting reliability and ensuring effective collaboration.
As a nation, we’re demanding more from our business internet services, and leased lines and EFM are evidence of how the industry is evolving to not only meet but exceed our changing needs. Today, there are now many providers offering leased lines to UK businesses, including BT, Virgin Media, and Wavenet.
Coworking Space: It’s Not Just for SMEs
We all know that the coworking space industry is growing rapidly. In fact, it’s expected that the number of people working from these temporary offices will increase by about 40 percent in the next few years on a global scale, with more than one million ‘coworkers’ by 2018. However, until now, the concept of the coworking space has largely been associated with SMEs and with small start up enterprises looking to save on rising office rent. The relationship between the coworking space and the larger corporation has rarely been explored. But it seems like all that is about to change, as it’s reported that more and more larger companies are beginning to see the attraction of flexible, temporary work stations.
Earlier this year, Mat Oakley of Savills presented a report demonstrating how office availability is dwindling. London’s West End, for example, today offers just 3 percent office space availability, while more than one million square feet of Westminster land has been transformed from commercial to residential space within the last 5 years alone. Many businesses – regardless of their size – are today finding it more and more challenging to locate and identify affordable, convenient office space.
Coworking spaces are ‘no longer just for SME organisations’, says Oakley. The term ‘corporate coworker’ is already entering our vocabulary as we’re seeing increasing numbers of larger businesses search for a coworking space to meet their needs. In the United States, major companies such as Sprint have even started to introduce their own coworking facilities, such as the Sprint Accelerator – a place where Sprint employees and workers in the local community can go to work, influence, motivate, network, and so on.
The reason why larger businesses are beginning to look more seriously at coworking spaces is simple – the benefits of the coworking space aren’t exclusive to SMEs and startups, they’re universal advantages that businesses of any size could benefit from in both short and long term situations. Some of the biggest benefits of coworking space, for both large and small companies, include the following:
Ability to significantly reduce permanent office size, or remove the need for a permanent office altogether to save costs at a time when office rent is rising in many areas around the world.
Encourage better interaction between employees and enable solid networking opportunities for those within similar industries. Chance to be inspired and motivated by like minded people.
Access to professional meeting spaces and fully equipped conferencing facilities for both internal meetings and discussions with clients, suppliers, and potential investors.
Is Your Knowledge of Business Loans Out of Date?
A shocking report recently published by the KPMG tax advisory firm suggests that, on average, small businesses are determining the best uses of their financial resources based upon information that is more than 4 months out of date. It is believed that relying upon outdated financial information – particularly in terms of business loans and investment opportunities – is preventing small businesses from contributing around £1 billion to the economy due to a lack of growth and development.
The study found that 40 percent of British businesses worry about financial uncertainty, but are basing these worries on information that is no longer relevant. Business loans are a prime example. Media sources just a few months back were focused on how high street banks were still wary about lending to small businesses, despite a boost in the economy. Today, however, there is a much heavier focus on alternative business loans, such as invoice trading, peer-to-peer lending, and asset-based finance.
Physical assets are cited as some of the most important aspects for business growth. This includes staff, equipment, necessary vehicles, hardware, and property. However, investments into these areas specifically aren’t increasing at the rate that would be expected given the recovering economy. ‘The UK’s economic recovery has been driven by rising employment but growth in productivity has so far been unimpressive’ says Dan Aylward of KPMG. Outdated knowledge of business loans is partially to blame.
Seven percent of businesses claim that had they had access to more up-to-date information regarding investment opportunities and business loans, they would have invested more in the growth and future of their business – 17.6 percent more on average, to be precise. It’s estimated that businesses that do have access to relevant information regarding business loans and business finance grow at roughly twice the rate as those who rely exclusively on information that is no longer relevant to the moment.
How to Keep Up-to-Date with Business Loans
Staying in-the-loop when it comes to business loans and business finances isn’t as difficult as you may think. Here are just some ways that your business can remain up-to-date when it matters, and where it matters:
Compare rates of business loans regularly through an online price comparison website to track changing interest rates and repayment terms, enabling you to make an informed decision.
Consider working with an accountant who can help you to identify the areas in which your capital investments would have the greatest impact on your business finances.
Bookmark some business blogs for daily updates on what’s happening in the UK business world, including changes relating to finances, costs, and even availability of government grants.
Manufacturers Demanding More Cost Effective Leased Lines
The term ‘smart factory’ is one that’s expected to become a normal part of our vocabulary within the next few years, as more and more of the UK’s manufacturing plants turn to full automation in favour of manual input. We’re already seeing an influx of smart factories in Germany, and Britain is fully expected to follow suit. But there is one very big obstacle that could hamper our success in automation: internet.
As with any sort of ‘smart’ technology, such as smartphones or smart kitchen appliances, smart factories will rely upon solid, reliable connectivity to get the job done. As we already know, many small businesses and SMEs are reporting that their business internet connections are not living up to the hype (around 42 percent of SMEs report problems with connectivity), and it’s no different for manufacturers and for other large businesses within the industrial sector. Quite simply, we’re starting to question whether we really have what it takes to enable smart factories to get off the ground here in the UK.
Rising Demand for Leased Lines
In recent years there has been growing demand from UK business for dedicated leased lines, especially from the industrial and manufacturing industries. However, many are reportedly unhappy with the cost for these services. UK-based company Metal Assemblies paid £4500 for a leased line installation, and £600 per month ‘rent’ to access the service. They claim that they were essentially held ‘over a barrel’, having no choice but to pay these high costs because a standard business internet connection was proving to not be reliable enough to meet their growing demands for connectivity and automation.
Why Leased Lines are Costly
Apart from the fact that leased lines guarantee a reliable connection – something that an ADSL line cannot – there is another very important reason why leased lines can be costly – availability. Until recently, BT was the sole provider of leased lines, essentially meaning they could set their own price. Today, we do have a few more options, such as Virgin Media and Vodafone, which is helping to regulate costs, but as it stands, leased lines are still not ‘the norm’ when it comes to business connectivity.
Finding Affordable Leased Line Deals
The good news is that it’s not as difficult as you may think to find an affordable leased line deal for your business. Leased lines are more expensive than a standard ADSL line, but there’s really no need for manufacturers, or companies within any other sector, to feel like they’ve been held over a barrel. By comparing the different UK providers of leased lines in the UK, it’s quick and simple to see which provider are offering the most attractive and affordable rate for your needs. Give it a try today.
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