The big five mobile phone companies are fighting over your business, but what are the benefits of going mobile and how can you get the best deal?

Nokia predicted businesses would lead the way when it came to mobile working. However, that hasn’t happened to date, and the mobile phone giant is the first to admit is was a little wide of the mark. In fact, it reckons much of the growth of smartphone usage at work has come from consumers taking their personal devices into the workplace rather than companies proactively pushing it.

So far, neither the mobile device manufacturers nor the network operators have been able to convince businesses that mobile email is financially viable as a tool for the vast majority of employees. And that’s despite the fact that three million workers now practice some form of flexible working, according to the Office for National Statistics.

But the battle has commenced to win over the business community, and the mobile operators – the big five being Orange, T-Mobile, BT, Vodafone and O2 – are on the hunt for your money.

After all, there is plenty of money to go after. Research from technology consulting firm Ovum shows there are a total of 3.2 million business mobile phone connections in the UK, split between 974,000 large corporates, and 2.3 million from small to medium-sized enterprise connections. In terms of revenues, this equates to £1.7bn (with large corporates accounting for £450m and business like yours £1.2bn).

Small is lucrative

So why are operators making more money from smaller firms? “First, because there are more of them,” answers Jeremy Green, a principal analyst at Ovum, “but also because they pay more for their usage, since they don’t have the same bargaining power as the bigger companies.”

Green also says there is a growth in mobile-only businesses, with an increasing number of companies giving up fixed telephone lines completely, although this trend is much more popular in Scandinavian countries than the UK.

“Fixed lines are a sign of solidity,” says Green, “and the UK has been slow to make the switch into mobile-only usage.”

He adds that this move has been held back by the lack of systems on the market that allow all the phones to interact as would happen with a fixed-line telephone exchange. Despite this, the competition is tough and all providers are keen to get businesses to take up more of their products and services.

“We have a real commitment to small businesses,” says Michael Reilly, head of data products at Orange. “We put our money where our mouth is on that front.” He claims working patterns are changing and more businesses are seeing the benefits of flexible working arrangements. “But although there may be more demand for flexible working from employees, few small companies have policies on it and fewer still know what the correct technical response should be,” he continues. “So we are always looking into how we can serve that need.”

Cost and control

Reilly says many businesses are worried about costs and a perceived loss of control. But data bundles are coming down in price all the time and most administrators do not lose control over the technology or their staff just because more of them are working via their mobiles. “I think in some organisations, the responsibility for telecoms resides in the IT department and, of course, these people are historically anxious about losing control,” he says. “I also don’t believe security concerns are real. Mostly, it’s down to the enforcement of policies rather than the technology itself.”

Oliver Chivers, head of business marketing at T-Mobile, says the enterprise market has expanded significantly in recent years and will continue to grow. He says mobile email is becoming far more widely used, but is nowhere near the penetration that consumer texting has reached.

“All businesses can benefit from an increased use of mobiles,” he says, “but small firms can benefit perhaps disproportionately, and it can transform the way a business operates. Mobile broadband is a significant growth area for all firms. With people using laptops out of the office more and more, businesspeople can use their phones as modems and get online from anywhere there is
a phone signal.“

Chivers admits that he’s given up broadband in his own home. “The idea for us is to keep it simple. I call it the ‘my dad test’. My dad needs to be able to understand the technology and how to operate it.”

A needs analysis

Certainly businesses like yours are looking for cost-effective, simple answers for your mobile working requirements. The trouble is, all providers say they are the best value for money, all claim to offer the best service and all reckon to offer the most flexible deals. But, as is so often the case, it’s all in the detail.

Despite the glossy brochures, sparkling websites and enthusiastic sales pitches, phone industry regulator Ofcom says that, while headline prices of landline, broadband, mobile and pay TV services have fallen, consumers (and, therefore, business customers) are still facing extra charges as part of complex contract terms.

These include fees for paying by cash or cheque rather than by direct debit, which can be up to £5 a month extra, or charges for cancelling a contract before the minimum period has finished or for making a late payment. Ofcom is currently conducting a review into charging, and a ruling is expected during the Autumn, with which the telecoms industry will be forced to comply.

BT is active in the mobile industry and claims to be striving to resolve its business customers’ requirements. “Every business is different,” says Charlotte Anderson, general manager at BT Business Mobility. “And within every business, different users have their own needs. One of the secrets to making the most of mobile technology is to ensure each employee is equipped with the right technology. For senior execs who are frequently away from the office, that might mean a laptop and a smartphone able to make low-cost phone calls over wireless broadband. For others it may simply mean a standard mobile phone.

BT Business has developed the Mobility Matters Calculator (see www.mobility-costs.co.uk). It asks you questions about your business needs and suggests the mobile technologies that might be best suited to you.

Great expectations

Since users’ details are requested before any decent advice is forthcoming, cynics might see it as an exercise in collecting potential customer information. But the idea is spot on, as researching usage and need is vital before embarking on a mission to go mobile. Ultimately, all providers are looking for new business and it is up to business owners to quiz each of the major players  about what they can offer and for how much.

O2 runs various products and services aimed at businesses like yours. The company operates wireless broadband internet access at hotspots across the UK (see directory at http://hotspotdirectory.o2.co.uk ) and
it promises to call business customers every three months to check they are getting the most out of the handset, tariff and any other mobile services. Depending on what they are charging for their services, many might consider a phone call once a quarter the least they should be doing.

“The most important thing any small business should do,” says Penny Simmonds, a segment manager at Vodafone, “is look at the total cost of what they’re getting over the length of the entire contract. With so many offers available, it is often confusing and unclear to a business user.”

Vodafone is working on simplifying its pricing this year. Simmonds says none of the phone operators set out to confuse the customers, it’s just the way the businesses have grown. Ultimately, she says, it’s less about the pricing and more about convincing users of the advantages of going mobile – in terms of how it can increase productivity and accessibility. 

Orange believes “Firms are like fingerprints. They may look the same, but ultimately each one is unique.” Although this is true, it poses problems for mobile companies attempting to reach business customers. It’s not like combine harvester manufacturers hitting farmers, or umbrella sellers targeting spectators at Wimbledon. The fact is that one size doesn’t fit all in the mobile phone market, and at the same time the operators cannot offer three million different versions. The response is to offer deals for companies of a certain size in terms of employees, while enabling all manner of call, text or data tariffs to be applied depending on the level of usage.

Having one supplier for all communications, including landline, mobile phones and broadband, often makes more sense. The deals are better, the information is in one place and a business has more bargaining power with the supplier. It also means one contact number for all service, billing and fault enquiries. Yet while 42% of small businesses in the UK believe consolidating suppliers would increase their efficiency, 62% have more than four for telecoms and IT.

Ultimately, it all comes down to you, or one of your team, putting in the time, speaking to different suppliers, thinking about usage, requirements, short to medium-term needs and angling for the best offer.

All providers run small business-focused websites and are desperate for the revenue, so take your time, do your research, get written assurances from the companies about service levels, while keeping a close eye on bills, usage (and changes in usage) to help establish your future requirements.

The big five: what’s on offer?

BT

BT’s Office Anywhere deal is a mobile service that gives users the functions of a Windows PC on a smartphone small enough to fit in your pocket. It comes with a ready-to-use VoIP service and instant access to real-time email, calendars, contacts, documents and the web. You get one contract for voice and email, free VoIP calls to UK landlines with wireless broadband at BT Openzone hotspots, unlimited email and internet access on the move and unlimited calls to BT mobiles, voicemail and nominated office landlines.

O 2

O2 offers its small to medium-sized business customers free calls to any other number on the 18-million strong network. In February, O2 announced the launch of a dedicated team of experts “to help enterprise customers achieve the most from mobile technology”, thereby providing customers with bespoke mobile or data solutions that address the specific needs of
their business.

Orange

Orange Venture is aimed at companies with one to 10 employees and offers seven “price points” from £28-£165, unlimited calls between sharers and unlimited evening and weekend calls to UK landlines and Orange mobiles. Firms with more than 11 employees are eligible for the Orange Momentum package. It offers unlimited calls and texts between colleagues, “up to 25% extra anytime, any network minutes” and further price plans.

T-Mobile

T-Mobile is trumpeting its Business 1-Plan, offering a plethora of options that enable businesses “to reap more value”, and build “a truly flexible allowance of voice, data and SMS” that removes complexity. The firm boasts the largest Wi-Fi network in the world, with more than 1,000 hotspots in business-friendly locations in the UK and 21,000 worldwide.

Vodafone

Not sure what the best deal is for your business? It’s a common complaint. Vodafone has responded by providing a useful online tool on the ‘small business shop’ section of its website. By inputting how many minutes you use, where you are calling and how many mobiles the business has, it figures out the most appropriate plan for you.