Telecom Expense Management Blog

There are several ways a wireless expense manager can allocate the cost of the pool plan to different cost centers.

Average per line.  With this method, you simply add the total monthly recurring and peak charges and average per each line in the pool plan. 

1. 100% Cost per Minute.  With this method you take the total monthly recurring and peak charges and divide by the peak (non-mobile-to-mobile) minutes to derive a cost per minute.  Then you allocate the pool costs by charging each user the cost per minute times their peak usage.  Users with zero peak usage in that month should be charged nothing for the voice component.  Of course, if they only made text or data charges, those costs would be directly allocated to the individual and not averaged in the pool.
2. Base Plus Cost per Minute.  This method is a hybrid of methods 1. and 2. Here you would allocate a base charge (say $39) to all users in the pool.  This is the cost to have the potential benefits of a cell phone, regardless of how much you use it.  Any excess costs (pool monthly and peak charges) above the base charge times the number of users is converted to a cost per minute.  Thus, each user is allocated a base plus the cost per minute times their peak minute usage.
3. Everyone Gets Unlimited.  While this may not be the most cost effective option, it does simplify order, administration, and monitoring. If your company is large enough, you might be able to negotiate the unlimited plans down to $89/line.

If you need help with your wireless expense management, contact us today or call us at 877-219-8012