Buying smartphones, tablets and laptops for your business can be an expensive endeavor, not to mention how complicated it can be to ensure that the phones are all set up with the right security and privacy software.

Phone with contract = “bundle”

Despite the convenience of a phone and mobile plan bundle, have you considered that it may be cheaper to procure a SIM-only plan and mobile devices separately?

Telecommunication and smartphone contracts in the US

The United States of America is a beacon of hope, change, inclusion, and progress. This is a place that has always been synonymous with the idea of a better life—the American dream if you will. However, one thing anyone on the lookout for the American dream will not appreciate is the sheer cost of mobile phone contracts for business customers.

Telecommunication costs in the US

We are the custodians of some of the most advanced networks and infrastructure globally, but in 2018, we were the fifth most expensive for contracts per gigabyte in the world and the most expensive overall for mobile data. While it isn’t 2018 anymore, and countries like Canada have recently shot up to become the most expensive for contracts per gigabyte, the US still isn’t exactly cheap when it comes to mobile plans.

We are the custodians of some of the most advanced networks and infrastructure globally, but in 2018, we were the fifth most expensive for contracts per gigabyte in the world and the most expensive overall for mobile data. While it isn’t 2018 anymore, and countries like Canada have recently shot up to become the most expensive for contracts per gigabyte, the US still isn’t exactly cheap when it comes to mobile plans.

The United States mobile communication ecosystem is very different from those in other parts of the world. The first thing to understand is that there are only three companies recognized as Mobile Network Operators (MNO).

Network operators: MNO vs. MVNO

These are Verizon, AT&T, and T-Mobile. There are a whole host of other companies that provide network access, such as Mint Mobile and Google Fi, but these are known as Mobile Virtual Network Operators (MVNO).

The key difference between an MNO and MVNO is that an MNO has its own infrastructure in place to facilitate data transfers and communication. Mobile Network Operators, by that definition, sounds like the better option, right? It gets a little more complicated.

Why are US phone-with-contract plans so expensive?

Depending on your sources, you’ll find a whole host of reasons for the inflated charges associated with mobile plans in the US. Now, there are differences between the various types of plans offered by most US carriers, but for now, we are focusing on data plans specifically.

Data is the most widely used mobile connectivity resource at the moment, and it’s likely to remain that way well into the future. While phone calls and utilization of the Short Messaging System (SMS) used to be the go-to for any forward-thinking, tech-savvy business, that is no longer the case. Specifically in the aftermath/ epicenter of the Covid-19 pandemic.

A larger percentage of the international and local American workforce have been allowed to work from home, where they are likely safer than in a massive bullpen-type corporate setup. This has intensified the changeover from the previously popular phone calls to other data-driven platforms like WhatsApp, WhatsApp business, Signal, Telegram, and Zoom. These are how we stay in contact in the corporate context now and these platforms are all data-driven.

One of the reasons that MNO mobile plans are so expensive is because of the fundamental lack of competition. The three MNOs know that they’re the only ones with adequate infrastructure, so there’s no reason to try and offer competitive mobile plan solutions because they’re guaranteed to attract clientele no matter what.

Another reason is because of the costs involved with setting up the necessary infrastructure. Verizon, in particular, has shelled out vast amounts of money to build up the coverage and infrastructure network they currently have. All this expense has helped them gain the greatest market share in the industry, but it also has to be compensated for.

You could essentially sign up for a contract with an MVNO to cut your costs, but companies like Verizon have cemented themselves as the best solutions for corporate communication. There is, however, another way you could streamline the telecommunication aspect of your business and save money on your monthly telecom expenses.

Phone with contract vs. SIM-only

Traditional mobile plans or phone-with-contract plans are the norm for business and personal communication solutions. It’s no wonder as these plans are convenient, one contract and it covers your device and mobile plan – no need to search for each one separately.

But comparatively, they’re more expensive than the alternative. While there are some plans that give you a monthly amount of data, calls, and SMS, most of the corporate focused plans are geared toward calls and require you to pay extra for any other resources you might need.

Data-based plans work in a similar way. Drawing attention to Verizon again, one particular plan from Verizon costs $40 for 500 MB of data. But that is just for the data; you’d need to pay another $40/ month for a mid-range device and additional monthly costs for any calls, SMS, or other services.

The other issue with mobile plans is their length. Typically, you’d sign up for a 24-month contract that includes a data allotment and a device. In those two years, there is no opportunity for an upgrade, and smartphone technology is changing faster and faster these days, with new tech becoming obsolete much sooner than ever before. On top of that, if you sign a contract with Verizon for business customers, you’ll be locked in for 36 months according to their new contract terms.

Bundle vs. SIM-only plans

To get away from these long contract durations and fast-stagnating devices, you could switch to SIM-only plans and let Everphone take care of your tech – it’s what we do.

There are numerous advantages to SIM-only plans:

• SIM-only plans are much more flexible as contract lengths can be chosen more freely.
• SIM-only plans are also available as short-time solutions; as short as 30-days. This means no more being tied down to an inescapable contract.
• SIM-only plans offer easier and more frequent plan upgrades.
• You can choose SIM-only plans
• SIM-only plans offer better integration with Everphone as you’d have the data you need and an intuitive smartphone solution capable of evolving as your company does.
• SIM-only plans are far more cost-effective with no inflated charges due to included handsets.

Choose a SIM-only solution and Everphone

SIM-only is the most cost-effective way to go in terms of corporate telecom solutions. Paired with Everphone, you’ll have an intuitive smart device ecosystem that works the way you need it to while still remaining as convenient as signing for a device and mobile plan bundle. We offer the distinct advantage of enabling your entire workforce to conduct the day-to-day on the latest tech at competitive prices. The possibilities with Everphone are virtually endless.

Do you prefer iOS over Android? We can get your team kitted out with the latest iOS devices. Does your business require tablets for your sales team?? We can make that happen too.

Everphone can also integrate with your current mobile device management provider giving you even more peace of mind where your tech, data and employee safety is concerned. We’ll take care of upgrades and replacements, as well as repairs and general device maintenance.

With Everphone, your Verizon, AT&T, or T-Mobile SIM-only plan, and a capable MDM solution in place, you’ll be in complete control of how your business communicates in-line with your budget.