Jon Giberson President/Founder - CONNECTIONS, Telecom Cost Control

1. Grand Canyon Alliance of AVAYA UsersGroup Increased Cell Phone Use Brings Increased Risks Jon GibersonPresident/Founder - CONNECTIONS, Telecom Cost Control

2. Wireless Growth Has Many Plusses… • Companies that have deployed mobile field service solutions have realized: • 27% improvement in worker productivity • 19% improvement in customer satisfaction • 17% increase in over profitability • 13% increase in service revenues • Aberdeen

3. …And Some Negatives! • On average,organizations are paying 25-55% more per minute than they should because they are unable to control wireless costs. • Numerous surveys • The 30¢ per minute call is back!

4. Do You Know? Risk – Cost Risk – Safety Risk – Loss of Device Risk - Control Risk – Abuse Can You Afford Not to Know?

5. Do You Know The Most Expensive Misconceptions? • Since we pool, we are fully optimized • Finance closely monitors spend • Managers effectively review and monitor their employee usage • The carrier’s electronic billing portal provides all the information we need • We have a pretty good handle on things

6. The Invisible Spend • Wireless usage now exceeds wireline • 52% of enterprises have no formal wireless cost management program • 21% have programs less than 1 year • Aberdeen Group

7. Costs Are Increasing • How much or what you are paying for are you actually using? • Are you over or under utilized? • How much of what you are buying – are you actually using? • “FREE” is never free • Visibility leads to more controlled use and savings

8. Utilization • Plan effectiveness determines ECM!

9. Loss of Device • Number one threat to corporate information security • Users are lazy when it comes to mobile technology • Open devices lead to data loss • How are employees using the device? • Educating users is essential

10. Threats • Wireless phones are more like computers than their wireline counterparts • Easily lost or stolen and used to penetrate corporate defenses • Can access virtually all aspects of your information network • Many employees don’t add pass codes • Viruses are becoming more common

11. Vulnerability • Smart phones have the power of a PC • 1 Ghz processor, many MBs RAM • Same types of attacks as PC • Jamie De Guerre, CTO Cloudmark

12. Abuse • Most employers believe this is the biggest problem • What is acceptable use? • New workforce, new times, new attitudes • 2010 – 50% of workforce retires • Replaced by 20-30 year old

13. Data Misuse & Abuse • Apps are “Under-the-radar” costs • Apple – 3 billion apps downloaded • 20 billion by 2013 • Most “free” apps require data • FaceBook, GoogleEarth • Cellflirt - $9.95/month data charge • Ringtones – monthly fee! • Apps are this generations’ solitaire

14. Do You Know How MuchUse And Abuse You Have? USE ABUSE Personal calls Internet Social networking Ringtones Camera/video Texting Music Jokes • Talking • Tethered modem • Backup data • Internet • Memo taking • GPS navigation • Camera • Texting • Ringtones

15. Do you know what your employees are doing? They Are Social Networking! • Almost two-thirds of those with Facebook accounts access them at their workplaces • Huge loss of employee productivity • Almost a quarter of today's employees check Facebook more than 10 times a day • Study by Common Sense Media.

16. Do you know what else your employees are doing? They Are Texting • Over 50% of texts are personal • 30% of users say 100% of texting is personal • PEW Research Center survey • We are becoming a text-centric society • Voice usage is going down • Texting is going up

17. Safety – Text-Driving is a National Epidemic! • Text driving is more dangerous than drunk driving! • Talking while driving – non-hands free • Reading email while driving • Bus driver in LA reading Kindle

18. Do You Know What Your Risks Are? • Dykes Industries of Little Rock paid $20.9 million • Cooley Godward, a Virginia-based law firm - $30 million • The State of Hawaii fined $2.5 million-20% liable for plaintiff's injuries • Employee on his own time using his own phone made a call to a customer caused accident. The employer settled the case for $500,000

19. States’ Ban on Texting

20. 2008 Chatsworth train collision

21. What Happened? “Text Training” • Union Pacific freight train and a Metrolink commuter train collided head-on • NTSB faulted the Metrolink - the engineer was texting! • 25 deaths - the deadliest accident in Metrolink'shistory • Claims are expected to exceed the $200 million liability limit set in 1997

22. USTD Considering Outright Cell Phone Ban In Cars • U.S. Transportation Secretary Ray LaHood says “motorists are distracted by any use of mobile phones while driving, including hands-free calls” • Doing research that may lead him to push for a ban. http://www.bloomberg.com/news/2010-10-08/lahood-weighs-urging-u-s-ban-on-all-driver-phone-use-in-cars.html

23. Control • Personal vs. Corporate Liable • Is it my data? • How do I get it back? • IRS – what is the new law?

24. Cell Phones removed from IRS listed property • Section 2043 of the Small Business Jobs Act of 2010 (HR 5297) removed cell phones from the definition of listed property for which an employer must substantiate that all or a portion of the use of the listed property is by employees in the employer’s trade or business. • President Obama signed the legislation on 9-27-10 and the provision on cell phones is effective for tax years ending after Dec. 31. 2009. • http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h5297enr.txt.pdf

25. Do You Know How Call Accounting Reports Can Help? • Who is in your Top 10 free list – this month?

26. More Call Accounting Report Help • Mapped Number Report • How are telecom resources being used/misused? • Customers, vendors, employees’ home and cell

27. Do You Know About Cellular Gateways? • A mobile device that connects to your PBX • Looks like a trunk group • Converts paid minutes to and from your cell phones and PBX to mobile to mobile • How do you determine feasibility and ROI • Call accounting reports!

28. How Can AMonthly Analysis Help? • What is the correct plan for each user?

29. A Monthly Analysis Will Show… • Effective cost per minute • Invoice Total divided by total Minutes used 29.68¢ per minute

30. Analysis Reports • Analysis and reporting summary • Long distance exception • Roaming exception • Family plan numbers • Voice usage detail • Text usage detail • Data usage detail • Rollover vs. polled minutes analysis

31. Some Common Analysis Findings • 800,000 rollover minutes • Phones with zero usage • $10/month data usage • Ring tones & social network sites • $20/month text plans with few texts • Users with no text plans – many texts • Roaming text charges • Heavy 411 users - $1.99/call

32. Do You Know if Policies Are Followed? • Safety goes down - liability goes up! • Modify behavior by controlling activity. • Disable texting over XX MPH • Shut off phone from 5pm – 8am

33. Do you know where key employees are? • Locate device with VXTracker, Mobile Voice Manager • Delivery/trucking, visiting nurses, union issues

34. Defining Success • Success in wireless management is: • Creative, aggressive support of the business mission through wireless technology • At the most cost-effective basis • Without burdensome controls on users • Measurable results

35. Do You Know What to Do? Create, communicate and enforce wireless policies Create and maintain a wireless device inventory Understand how cellular usage supports your business Optimize your spend by ensuring that users are on appropriate plans Give management reports they need for proper oversight Gain more accountability from your wireless subscribers Negotiate with your providers

36. Benefits There are many benefits with truly understanding wireless usage and subscription - one of which is cost savings between 10%-30% of an organization’s cellular budget. KNOW WHAT YOU DON’T KNOW

37. CONNECTIONS Jon A. Giberson 800-900-9700 Jon.giberson@vxtracker.com