Enterprises Need Better Wireless Spending Control, Study Says

Once seen as a perk for top executives, enterprise spending for wireless voice and data services now accounts for 25 percent of company telecom budgets, according to a Yankee Group

April 12, 2004

1 Min Read
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Once seen as a perk for top executives, enterprise spending for wireless voice and data services now accounts for 25 percent of company telecom budgets, according to a Yankee Group report released Monday.

The increased spending on wireless connectivity means that enterprises must change how they acquire and manage those services, Keith Mallinson, Yankee Group's executive vice president for wireless and mobile research said in a statement.

"Corporate wireless purchasing is changing for a variety of reasons and the importance of centralizing this function is increasing," Mallinson said. "For example, purchasing managers must recognize requirements specific to locality and users."

The study found that nearly half of large enterprises aren't centrally managing acquisition of voice services. In addition, in many cases, accounting isn't precise, made more difficult by the fact that users are expensing their wireless expenses. As a result, some enterprises are spending more than they should for wireless services, according to Mallinson.

"The absence of accountability or of an effective review of usage against rate plans suggest many companies are overspending substantially," Mallinson said.

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