With all of the things to worry about when rolling out a mobile IT solution; user requirements, device and network security, training, technical support, hardware, software, updates, budget, etc…there’s one checklist item that doesn’t get as much attention as it should – 4G LTE/5G mobile Internet service.
For most, choosing a data plan is perceived to be a simple matter of choosing the plan with the best price between the three tier 1 carriers that seemingly have nearly equivalent 4G or LTE coverage. Whatever the reason, mobile Internet service doesn’t garner as much of IT managers’ attention as it should.
Each week for the next 10 weeks I’ll write about the 10 things that you, as an IT manager, should consider before signing your company up for a contract for mobile Internet service.
2. Data Overage Rates
In our previous post we discussed the importance of determining your business’ bandwidth requirements. You can read it here.
This time we’re looking at a related issue – data overage rates. A data overage is the amount of data that you use more than your monthly contracted allowance. Ideally with careful planning your business will never use more than your monthly data allowance and avoid the costly bill that you’ll receive if you do.
Unfortunately, that’s not realistic – unless you don’t mind paying for unused capacity, which is referred to as ‘breakage’ in the wireless industry. There will be unforeseen events that cause users and your business to go over your monthly data plan allowance. Though with careful planning, data pooling and a well-designed user policy businesses can keep a lid on overages while minimizing breakage.
With a fleet of dozens of tablets these charges can add-up quickly. Even an overage of only 100 MB will cost the same as going over by a full gigabyte. Data overage rates can be as high as $15 per gigabyte. On a 3 GB 4G LTE/5G data plan costing $37.50 a month with a $10 overage rate, 50 users exceeding their limit by an average of 1 GB will cost an extra $500 over and above a $1875 monthly bill. That’s more than a 25% penalty over the monthly cost for those 50 users!
Because occasional overages are inevitable it pays to shop around for a service provider with a low overage rate and one with flexible plan options that can size a plan according to your business’ needs.
Next blog in this series I'll discuss cell coverage maps.
Click here learn more about DataXoom 4G LTE/5G mobile Internet plans for business.