Mobile phone bills will likely be the next reason for mobile budget blowouts. AT&T announced rates for its Mobile Share plans will increase $5-10 per month per phone starting in August 2024. Additionally, clients holding on to legacy plans from T-Mobile are getting hit with higher prices this summer. Verizon customers aren’t immune either. To make matters worse, some of the changes are coming so fast that customers don’t have enough time to optimize off these plans or get a new contract signed.
Here’s what we know and what to do about mobile inflation.
AT&T Price Hikes: Business Pooled Wireless Plans
AT&T’s pooled wireless plan called “Mobile Share” will see price increases of $5 to $10 per month per line effective in August. Even with quantity discounts, most customers will see a $3.75 to $7.50 increase per phone.
What’s unfortunate about this news is that pooled plans (which share a pool of data among a set of users) most benefit large enterprises with thousands of mobile users and lines, and the bigger your data plan, the harder the hit:
- If you have less than 6GB of data, your monthly plan charge will increase by $5.
- If you have 6GB of data or more, your monthly plan charge will increase by $10.
Multiply this by thousands of lines, and you can see where budget blowouts can happen overnight. This plan isn’t going away, and current users will continue to get services like Unlimited Talk and Text in the U.S., Mobile Hotspot Data and Mobile Security via ActiveArmorSM. In addition, they will now also get 5G access on compatible devices.
You Have Options: How to Evaluate Plans
The good news is customers have options. Want to know what your monthly charges will be if you stay on this plan? AT&T answers that question and offers step-by-step help here.
Customers can also look at switching to a different plan. Tangoe’s mobile consultants are currently working with a number of clients to uncover the right plan to mitigate the increases and optimize usage. If you’d like expert support, please reach out today.
T-Mobile & Verizon Legacy Plans: More Price Jumps
While telecom legacy plans have long been a source of rising rates and cost overruns, Tangoe has observed a marked increase over the course of 2024.
In June, T-Mobile made changes to their pricing structure on select legacy plans, leading to an increase in costs for customers valued at $2-5 per line per month. On social media, the company told multiple customers that it was “adjusting prices to respond to rising costs.” A number of plans are impacted including T-Mobile One, Simple Choice, and Magenta. Both businesses and individuals are affected.
In March, Verizon did the same, charging $4 more for their older unlimited plans.
When Mobile Inflation Hits, Do This
If you’re an IT, finance, or procurement leader noting this trend, you’re not alone. There are things you can do, and Tangoe’s team of 60 cost management consultants are here to help when you need it.
Audit Your Mobile Assets and Update Your Inventory
Mobile devices are consistently changing hands and with today’s employee churn rates, it’s easy to lose track of devices, owners, and how service plans and data are actually being used. Consumption habits have also changed dramatically in post-pandemic years with international travel making a comeback and return-to-office initiatives changing the way people work. Tangoe has inventory services and staff augmentation services designed to chase down every last mobile phone and update your inventory with detailed catalogs of devices, costs, and contracts.
Know Your Usage, Benchmark Your Prices, Power Your Negotiations
We also have a team of professionals to dive deep into your usage behaviors and data consumption habits, so you know exactly how to navigate contract renewals and negotiations.
Price benchmarking is important as many companies need market price intelligence to know whether that proposal they received from their carrier is competitive or not. In managing $34B in IT spending, Tangoe knows what the most aggressive rates are from the leading providers and can show you how to strategically manage mobile contracts in ways that put the negotiating power in your court. Learn more about our Audit & Optimization services.
Mobile Repossessions: The Overlooked Source of Savings
Phones are a key source of bloat, and “mobile repos” can help recoup costs on panic-striken purchases made during the pandemic. In fact, Tangoe has seen cases where companies cut mobile costs 60% by taking back mobile phones and encouraging the use of VoIP “softphones” instead. When you deeply understand usage, it’s easier to dial back overprovisioning without negative impacting productivity.
Get a Cost Savings Assessment from the Pros at Tangoe
Two particular mobile carriers dominated Tangoe’s mobile cost optimization engagements this year as the top vendors associated with overspending. Get a free cost-savings assessment to learn who they are, how much waste they’re generating in your mobility portfolio, and how much you could save.
Interested? Ask for a free consultation with Tangoe Advisory Services team.