Jon Giberson President/Founder - CONNECTIONS, Telecom Cost Control

Grand Canyon Alliance of AVAYA Users Group

Increased Cell Phone Use

Brings Increased Risks

Wireless Growth Has Many Plusses…

• Companies that have deployed mobile field service solutions have realized:• 27% improvement in worker productivity• 19% improvement in customer

satisfaction• 17% increase in over profitability• 13% increase in service revenues

• Aberdeen

…And Some Negatives!• On average, organizations are paying

25-55% more per minute than they should because they are unable to control wireless costs.

• Numerous surveys

• The 30¢ per minute call is back!

Do You Know?

Can You Afford Not to Know?

Risk – Loss of Device

Risk – Abuse

Risk - Control

Risk – SafetyRisk – Cost

Do You Know The Most Expensive Misconceptions?

• Since we pool, we are fully optimized• Finance closely monitors spend• Managers effectively review and

monitor their employee usage• The carrier’s electronic billing portal

provides all the information we need• We have a pretty good handle on

things

The Invisible Spend

• Wireless usage now exceeds wireline• 52% of enterprises have no formal

wireless cost management program• 21% have programs less than 1 year

• Aberdeen Group

Costs Are Increasing• How much or what you are paying for

are you actually using?• Are you over or under utilized?• How much of what you are buying –

are you actually using?• “FREE” is never free• Visibility leads to more controlled use

and savings

Utilization• Plan effectiveness determines ECM!

Loss of Device• Number one threat to corporate

information security• Users are lazy when it comes to

mobile technology• Open devices lead to data loss• How are employees using the

device?• Educating users is essential

Threats• Wireless phones are more like

computers than their wireline counterparts– Easily lost or stolen and used to

penetrate corporate defenses– Can access virtually all aspects of your

information network• Many employees don’t add pass

codes• Viruses are becoming more common

Vulnerability• Smart phones have the power of a

PC• 1 Ghz processor, many MBs RAM

• Same types of attacks as PC• Jamie De Guerre, CTO Cloudmark

Abuse• Most employers believe this is the

biggest problem• What is acceptable use?• New workforce, new times, new

attitudes– 2010 – 50% of workforce retires– Replaced by 20-30 year old

Data Misuse & Abuse• Apps are “Under-the-radar” costs– Apple – 3 billion apps downloaded– 20 billion by 2013

• Most “free” apps require data– FaceBook, GoogleEarth– Cellflirt - $9.95/month data charge– Ringtones – monthly fee!

• Apps are this generations’ solitaire

Do You Know How MuchUse And Abuse You Have?

USE• Talking• Tethered modem• Backup data• Internet• Memo taking• GPS navigation• Camera• Texting• Ringtones

ABUSE• Personal calls• Internet• Social networking• Ringtones• Camera/video• Texting• Music• Jokes

Do you know what your employees are doing?

They Are Social Networking!•Almost two-thirds of those with Facebook accounts access them at their workplaces• Huge loss of employee productivity

•Almost a quarter of today's employees check Facebook more than 10 times a day

• Study by Common Sense Media.

Do you know what else your employees are doing?They Are Texting

• Over 50% of texts are personal• 30% of users say 100% of texting is

personal– PEW Research Center survey

• We are becoming a text-centric society– Voice usage is going down– Texting is going up

Safety – Text-Driving is a National Epidemic!

• Text driving is more dangerous than drunk driving!

• Talking while driving – non-hands free• Reading email while driving – Bus driver in LA reading Kindle

Do You Know What Your Risks Are?

• Dykes Industries of Little Rock paid $20.9 million

• Cooley Godward, a Virginia-based law firm - $30 million

• The State of Hawaii fined $2.5 million -20% liable for plaintiff's injuries

• Employee on his own time using his own phone made a call to a customer caused accident. The employer settled the case for $500,000

States’ Ban on Texting

2008 Chatsworth train collision

What Happened? “Text Training”

• Union Pacific freight train and a Metrolink commuter train collided head-on

• NTSB faulted the Metrolink - the engineer was texting!

• 25 deaths - the deadliest accident in Metrolink's history

• Claims are expected to exceed the $200 million liability limit set in 1997

USTD Considering Outright Cell Phone Ban In Cars

• U.S. Transportation Secretary Ray LaHood says “motorists are distracted by any use of mobile phones while driving, including hands-free calls”

• Doing research that may lead him to push for a ban.

http://www.bloomberg.com/news/2010-10-08/lahood-weighs-urging-u-s-ban-on-all-driver-phone-use-in-cars.html

Control• Personal vs. Corporate Liable• Is it my data?• How do I get it back?• IRS – what is the new law?

Cell Phones removed from IRS listed property

• Section 2043 of the Small Business Jobs Act of 2010 (HR 5297) removed cell phones from the definition of listed property for which an employer must substantiate that all or a portion of the use of the listed property is by employees in the employer’s trade or business.

• President Obama signed the legislation on 9-27-10 and the provision on cell phones is effective for tax years ending after Dec. 31. 2009.

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h5297enr.txt.pdf

Do You Know How Call Accounting Reports Can

Help?• Who is in your Top 10 free list – this

month?

More Call Accounting Report Help

• Mapped Number Report– How are telecom resources being used/misused?

– Customers, vendors, employees’ home and cell

Do You Know About Cellular Gateways?

• A mobile device that connects to your PBX– Looks like a trunk group

• Converts paid minutes to and from your cell phones and PBX to mobile to mobile

• How do you determine feasibility and ROI

• Call accounting reports!

How Can A Monthly Analysis Help?

• What is the correct plan for each user?

A Monthly Analysis Will Show…• Effective cost per minute– Invoice Total divided by total Minutes used

29.68¢ per minute

Analysis Reports• Analysis and reporting summary• Long distance exception• Roaming exception• Family plan numbers• Voice usage detail• Text usage detail• Data usage detail • Rollover vs. polled minutes analysis

Some Common Analysis Findings

• 800,000 rollover minutes• Phones with zero usage• $10/month data usage– Ring tones & social network sites

• $20/month text plans with few texts• Users with no text plans – many texts• Roaming text charges• Heavy 411 users - $1.99/call

Do You Know if Policies Are Followed?• Safety goes down

- liability goes up!• Modify behavior

by controlling activity.– Disable texting

over XX MPH– Shut off phone

from 5pm – 8am

Do you know where key employees are?

• Locate device with VXTracker, Mobile Voice Manager– Delivery/trucking, visiting nurses, union

issues

Defining Success• Success in wireless management is:– Creative, aggressive support of the

business mission through wireless technology

– At the most cost-effective basis–Without burdensome controls on users–Measurable results

Do You Know What to Do?

Create, communicate and enforce wireless policiesCreate and maintain a wireless device inventoryUnderstand how cellular usage supports your

businessOptimize your spend by ensuring that users are on

appropriate plansGive management reports they need for proper

oversightGain more accountability from your wireless

subscribers Negotiate with your providers

BenefitsThere are many benefits with truly understanding wireless usage and subscription - one of which is cost savings between 10%-30% of an organization’s cellular budget.

KNOW WHAT YOU DON’T KNOW

CONNECTIONS

Jon A. Giberson

800-900-9700

Jon.giberson@vxtracker.com