Big business puts mobile operators on notice over costs & service

Stuart Corner
Monday, 12 May 2008 09:41

Your IT - Home IT

And while growing competition in many services, both domestically and internationally has given multinationals considerable leverage with suppliers, Ovum says they have yet to achieve similar gains in mobile services. "While many MNCs have had success in bringing core fixed voice and data network costs under control, there are still issues around the cost of provision in less developed countries. And it almost goes without saying that in multinationals it is the cost of mobile (and, increasingly, mobile data) that needs most attention."

According to Pauline Trotter, principal analyst at Ovum's Enterprise practice, EVUA members'  frustration with the level of support from mobile operators in supporting mobility on an international scale is an area of particular concern, since it makes managing mobile usage and costs difficult for MNCs. "However, there has been progress in getting 'enterprise-grade' service from mobile network operators," she says. "One sign of this progress is that major managed services or outsourcing contracts for mobile dominate new sourcing strategies.

"Forty-seven percent of respondents in our latest survey said that they are considering such contracts in the coming two years. While many companies we spoke to still procure and operate mobile nationally, there is a trend towards regional and even global contracts and agreements, as well as a trend towards longer contracts."

At least two mobile operators, Verizon and Vodafone have taken some initiative to address these concerns. In November 2007 they formed a global partnership to offer business customers a more consistent approach to mobile services and pricing across different countries.

A Verizon spokesman explained the initiative at the time as being "a collaborative teaming model with Verizon Wireless, focusing on a select number of multinational customers currently handled by Vodafone Global Enterprise. The spokesman said that, as part of the initiative Vodafone and Verizon Wireless would choose a 'lead rep' to be the face of the account teams. "The combined team will conduct strategy sessions focusing on global solutions specifically established for the initiative. The team also has the opportunity to present a combined contract covering services worldwide. The customers identified in this initiative will have a dedicated global customer helpdesk."