In the past five to ten years, smartphones have evolved tremendously, from devices used solely for calls and text messaging all the way to current performance-enhancing multifunctional tools. Ten years ago, we could hardly have imagined downloading software and music over-the-air – let alone having our email and calendar updated in real-time.

As smartphones have become more popular, so has the amount of data transferred in mobile networks. Increased data consumption has subsequently created new kinds of costs to organisations, while the reasons for these costs remain unclear to many in charge of approving them.

In most cases, the total amount of data consumed by a smartphone is a result of the following aspects:
– Utilised business application. For example, a mobile office solution, where the data transfer type used has the key role.
– Web surfing on smartphones. Browsing normal web pages consumes about 0.5–5.0 MB data (for each downloaded web site) – so the cost is 5–50 euros for each web site.
– The mobile network is used. When data connection is lost a new connection is established by the mobile operator and the 50kB minimum data charge is applied.
– Other applications are used. Most often, the purpose is recreational (MMS messaging, sending his/her own attachments through a private email account).

Additionally, what is known as “pricing for roaming abroad” may result in very high data costs for each kilobyte consumed, adding its own flavor to this cost mix. A foreign operator charges usually for a minimum of 50kB for establishing a new data connection, and the same connection charge is imposed by the foreign operator’s partner operator in the homeland. A brilliant money-making machine for the operators – and a totally unjustified cost for your organisation.

This remains the case despite the fact that after years of work, the prices for data roaming abroad were cut in the EU area since the July 1, 2009. Unfortunately, the new pricing does not have any effect on areas outside the EU, such as Asia and North and South America. If an organisation wishes to find out the reasons for the large phone bills received, a mobile operator will deliver, on request, a breakdown of the costs incurred per mobile subscription per day and even per connection established. In such cases, the invoice breakdown often has dozens of pages, maybe even hundreds. Most often this internal work is time-consuming and does not necessarily guarantee desired outcomes.

In fact, developing such reporting and making it more informative is not in the best interest of the operators.

Invoicing for data is highly lucrative business for them. The ICT management does not necessarily pay attention to large data costs, because phone bills do not end up in desks of the ICT management but are most often approved by the business management who may be more inclined to assume the invoice is correct.

So how can you then get a grip of the data costs? One option is to require the current IT provider/operator to provide specific studies on how much mobile data is consumed by the solutions/software utilised. Next, find out whether the following would be possible on end-users’ smartphones:
– Prevent use abroad, i.e. disable the roaming functionality and the end-user can then establish the connection manually when needed.
– Close the software that is utilising a data connection – such as a mobile office – for nights and weekends. This way you would avoid lost connections and additional costs caused by bad 3G connections.
– Lock the data connection availability for these times and set a maximum size for attachments that will be downloaded.
– Filter out less important email messages before they are downloaded on the smartphone.
– Change the data transfer type to one that consumes less data – you can ask your organisations ICT manager to resolve the most cost-effective solution.

In many organisations, ICT management often allocates resources for smartphone installation, service and maintenance services. While you are resolving these issues, find out whether this work could be outsourced and/or whether it could be done with a remote management solution, which would free ICT management resources to more productive tasks.

To minimise the data costs you must have an open dialogue with your organisation’s ICT management about current data costs created by mobility and potential cost risks and it is important to find out whether mobility levels and benefits have been outlined in the company’s mobile strategy with regard to the costs.

Find out whether your organisation uses mobile solutions that are designed to minimise the costs – such solutions for professional use include technologies by Seven and Blackberry.

Take advantage of an external expert who preferably is not employed by any mobile operator and change the organisation’s mobile policy to take cost-awareness into account on all the areas of mobility (data packages for mobile phone subscriptions, mobile applications, wireless adapters, smartphone management) – and run a tender regularly with your providers. Finally, instruct employees to take into account the cost-risks associated with different use situations – and reinstruct sufficiently often.

In terms of costs, both the ICT management and the end-user are often quite unaware of the risks associated with mobility. However, the organisation’s ICT management bears final responsibility. They should openly report to the business management on the mobile strategy and the cost risks associated with mobile use.

Case Study 1:
Company X started to use a so-called ‘freeware’ application
Company X is an international metal industry subcontractor with operations in five countries and a little over 200 employees. When deciding a mobile office solution for company employees the IT management chose a free Mail-for-Exchange application. The freeware application was installed on 80 smartphones, most of which were used abroad. It was very easy for the ICT management to choose this software, as it should have been cost-free and it was also used in another organisation managed by a familiar ICT Manager.

Later came the bill from their mobile operator, in this case after three months. The data costs had more than tripled. A single user had been invoiced for over ¤9,000 from his business trip to South America. You could no longer talk about freeware – rather, it was a large cost risk.

Case Study 2:
Employee X uses his smartphone while on holiday abroad
An employee goes abroad on his well-deserved summer vacation. While there he reads and sends email messages with attachments. For this he uses his private email account and software he has acquired and installed himself. Furthermore, as he is interested In what is happening back home, he reads news and weather reports with a web browser on his smartphone. The result is an additional bill for hundreds of euros for using the smartphone abroad. In all likelihood, this employee has not even begun to comprehend what kind of cost effects his leisure activities have. Nor is he aware of the organisation’s unofficial policy forbidding the end-users to install any third-party software on smartphones by themselves.