Cut your mobile bill in half - with little effort!
Are your corporate cell phone bills skyrocketing?
Are employees demanding the newest iPhone or Android devices, driving hardware procurement costs up?
How can you reduce this expense with little effort?
While still getting the best cell phone deal from Canada's leading carriers (Bell, Rogers, Telus)?
It's simple: corporate IT procurement departments are taking advantage of carrier incentives for new customers to significantly cut their cell budgets.
The industry refers to this as intra carrier movement as “churn”. And while they work hard to reduce churn, they focus even more on gaining new customers.
However, this focus on attracting new corporate client smart phone users has created an unintended consequence.
Industry churn rates in Canada have doubled in the last 10 years and there is a simple reason.
Carriers are offering upwards of $600-$800 per phone in credits to move - the more phones, the bigger the credits.
If you have 100 corporate smart phones that equates to upwards of $70,000 in credits on your cell bill!
With 3-year term monthly rates that are as low as $38 per phone, new customer incentives can reduce your net cost to $18.55 per month.
| Total Smart Phones | 100 |
|---|---|
| Monthly Phone Cost | $38.00 |
| Total Monthly Cost | $3,800 |
| Total Contract Cost | $136,800 |
| Carrier Incentive per Phone | $700 |
| Total Incentive Credits | $70,000 |
| New Contract Cost | $66,800 |
| Monthly Phone Net Cost | $18.55 |
| Months Paid of 36-Month Term | 18.4 |
More than half of your cell expenses are paid for the contract term by the carrier.
Or use the $70,000 credits to offset the costs of new phones (e.g., iPhone 15 Pro - 128 GB retails at $930)
And at the end of the term, they move carriers once more and get a significant credit all over again - it's like the carriers are paying you!
But isn't it time consuming, risky, and labour-intensive to change carriers?
The large Canadian carriers all claim superior network coverage but the difference between is marginal. There is little risk to change.
And porting your lines between the carriers is a simple process involving little effort by the IT department. Provide a phone list and the carrier does the work.
So why wouldn't the IT department take advantage of these significant incentives every 3 years?
The answer is many are ! And that is why "churn rates" have doubled and continue to grow!