US Businesses to Spend More on Wireless Than Wireline Services by 2010

US corporations' spending on wireless voice and mobile data services will exceed business spending on all wireline voice and data services by 2010, reports In-Stat. According to In-Stat's recent research, the arrival of this inflection point means that wireless carriers and network managers must increasingly opt for programs in which business managers pay and manage their employees' wireless services.

Unlike wireline services for which the employer always pays, roughly half of business organizations currently require employees to negotiate directly with wireless operators to provide voice and data services. Allocating resources to convince corporate customers to pay for employees' wireless service would be money well spent. What's more, corporate-liable and individually liable business users are disproportionately profitable for carriers compared to consumer users.

"Deciding how a firm pays for its wireless bills is a decision typically made at relatively senior levels," says Bill Hughes, In-Stat analyst. "Convincing a firm to change its approach is not the kind of decision that a salesperson can make at an initial meeting. However, reaching senior managers to convince them that wireless expenses need to be actively managed is in the interest of the customer organization and the wireless operator. Managing wireline expenses has been standard practice for decades. It is time to employ the same techniques for wireless expenses for the same reasons."

Recent research by In-Stat found the following:

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Posted to the site on 20th June 2007

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