iPass Wi-Fi Cost Index Report Finds European Businesses Waste at Least EUR 2.9 Billion per Year on Unmanaged Connectivity Costs
Large Hidden Cost of Achieving Essential Internet Connectivity for Business Travellers Is Revealed by Report
REDWOOD SHORES, CA., February 4, 2014: iPass Inc. (NASDAQ: IPAS), a leading provider of mobile services for enterprises and telecom service providers, revealed in its Wi-Fi Cost Index report, that European businesses are overspending by at least 50% through unmanaged connectivity charges from business travellers making international trips. As a result, at least EUR 2.9 billion per year is being wasted. During 20121 European business travellers made 65.1 million international business trips with an average spend on essential connectivity per trip per traveller of EUR 89.23 when travelling within Europe, EUR 155.41 when travelling to the USA and EUR 167.27 to Asia2. This means that a minimum of EUR 5.8 billion was spent in 2012 by European business travellers merely to get online. In contrast, enabling business travelers with a global Wi-Fi network would realise savings of at least 50%, as documented by the Wi-Fi Cost Index report: equivalent to EUR 2.9 billion per year.
Rene Hendrikse, VP EMEA, iPass, commented, “Mobile working has become ingrained in the fabric of many businesses, yet even in today’s cost-cutting environment, businesses are wasting money unnecessarily by failing to manage connectivity services and costs for their business travellers when working abroad. Business travellers expect connectivity across multiple devices, wherever they go, in order to work productively. Failure to see connectivity as an essential part of business travel is badly bruising business’ wallets.”
The Wi-Fi Cost Index outlines the actual costs of connectivity for business travellers and the impact of unchecked mobile data roaming costs. When roaming, the average business traveller will use 3G/4G 40% of the time within the EU, and 30% of the time outside the EU; the rest of the time using Wi-Fi. The average spend on Wi-Fi day passes is EUR 26.91 within the EU, EUR 22.34 in the US, and EUR 33.74 in Asia per traveller, per trip, while the average spend on data roaming within Europe was EUR 61.98, and in US/Asia, EUR 132.38 per traveller per trip. In Europe, the average per MB cost for data usage is EUR 0.45, and in the US and Asia, EUR 1.73.The typical daily MB usage by a business traveller is between 2720 MB and 5754 MB, from a range of tasks including checking email, web browsing, Skype calls, WebEx, and downloading files such as presentations and PDF’s. The typical business trip lasts four days.
Rene Hendrikse went on to say, “Enterprises are being stung by a lack of advance planning around how to enable mobile workers with high-bandwidth connectivity. Merely incorporating data roaming charges or bills from one-off Wi-Fi access into departmental expenses means that the true extent of the cost of mobility is often hidden. Access to connectivity is undeniably vital for productivity; in this environment it’s more critical than ever for businesses to look for ways to make the mobile working experience more productive for staff, and more cost effective. Providing access to a global network of wireless hotspots is one key way to help.”
For more information, download the iPass 2013 Wi-Fi Cost Index.
1 IPK International 2012
2 iPass Wi-Fi Cost Index 2013
About iPass Inc.:
iPass helps enterprises and telecom service providers ensure their employees and subscribers stay well connected. Founded in 1996, iPass (NASDAQ: IPAS) delivers the world’s largest commercial-grade Wi-Fi network and trusted connectivity platform. With more than 15 million” Wi-Fi hotspots across 132 countries and territories, iPass gives its customers always-on, frictionless connectivity for smartphones, tablets and laptops anywhere in the world — simply, securely and cost-effectively.
iPass® is a registered trademark of iPass Inc. Wi-Fi® is a registered trademark of the WiFi Alliance. All other trademarks are owned by their respective owners.
Valerie Chan, Plat4orm PR for iPass
Tel: +1 206-856-7885
Leila Hajaj, Spark Communications
Tel: +44 (0) 20 7 436 0420