Since Apple’s launch of its new iPad, which uses fourth generation (4G) LTE technology, users are consuming more data and presenting a new challenge for those managing enterprise mobility expenses. Managers need to prepare for this new challenge mobile expenses on faster networks as more devices are introduced with these new capabilities.
Verizon estimates that streaming video over an LTE connection will use double the data compared to accessing video over a 3G link. In addition, sharper screen resolution and new processing power will lead many users to shift to high resolution videos, transmit e-mails with larger data files and rely on files stored in the cloud. And, the iPad is not the only device that utilizes this technology. Even if your organization does not support the new iPad with a 4G network, it is the beginning of a new trend that you will need to address.
As carriers such as AT&T and Verizon have been facing a decline in voice revenues, they’ve decided end unlimited mobile data plans to create replacement revenue streams. In addition, carriers are working to convert customers to the faster network because it requires less capacity to deliver data and relieves pressures on older 2G and 3G networks. Until the introduction of the new iPad, only 5% of Verizon’s customers were using the faster data network.
The new iPad provides a compelling reason for people to switch to the speedier network. And, over the next year as carriers continue to expand their 4G coverage; there will be fewer devices that rely on the old network. Subscribers will automatically be upgraded to the new network as they procure new devices. For managers, the challenge is clear: Unless you have a legacy enterprise unlimited data plan, costs will escalate.
During this transition period, managers need to educate employees to about the cost of data. Managers that fail to provide employees with usage chargeback reporting will face bill shock from data usage on these new networks. A mobile TEM program can provide reporting and help you establish new policies with communications to control mobile expenses for the new iPad and your next generation of mobile devices.