As the functionality of wireless devices continues to grow, so do the security risks of keeping stored and transferred data safe and secure.  The following are a variety of safeguards that are essential for help in improving corporate cell phone security.

1) Utilize Built-in Security Features

For years, desktop computers have provided users with “built-in” security measures.  Most hand held devices now include a number of configuration settings and security measures that are intended to thwart basic security attacks.   Oftentimes, however, these features simply go unused.

User authentication mechanisms generally available on most handheld devices are PINs and passwords.  Some of these mechanisms include a timeout feature that locks the device automatically after reaching an “inactivity” threshold.  Employees should be familiar with and take full advantage of the security features that are “built-in” to their own personal communication devices.

2) Maintain Physical Control

A key issue that many organizations struggle with is deciding on whether to allow for employee-owned devices or stick with organization-issued equipment.  From a security perspective, organization-issued devices are easier to control and manage.  Not only can security controls be managed from a central location, but the devices themselves can also be configured to comply with corporate security policies.

Organization members should be encouraged to treat all wireless devices much like they would a credit card.  A lost or stolen wireless device incurs not only the cost of the handset itself, but it also puts the sensitive data contained on it at risk.

Lending cell phones to friends and relatives should be strictly forbidden as a matter of corporate policy.  Allowing access to wireless devices by individuals outside the organization opens  the door for misuse, abuse and/or fraud.

3) Limit Data Exposure

Keeping ultra-sensitive financial and personal information on company-owned wireless devices should be avoided if at all possible.  Although it may be convenient to keep PINs, passwords, account numbers and user IDs for quick access to online accounts, maintaining this sort of information on a wireless device should be avoided.  It is best to store this  information on a separate memory card until needed.

If the presence of this type of sensitive data cannot be avoided, always encrypt the information.  There are many commercially available encryption applications for most of today’s current hand held devices.  (NOTE: The need for encrypting data is another good reason for centralized control of wireless devices within an organization.)

4) Backup Data Frequently

Everyone knows that keeping important digital data in only one spot is a recipe for disaster.  Never trust a mobile device to be the only repository for important information.   Be sure to back up its data frequently to a desktop computer or stand alone hard drive.  Backing up data onto a memory card is effective if the card is kept separate from the device itself.

5) Avoid Malware, Suspicious Apps and Software Downloads

Malicious programs can be spread to mobile devices through communications channels such as multimedia messages or Bluetooth connections.  It is best to instruct users to treat any messages received from an unknown number with suspicion.  Most malware requires a user to interact with the message to become active on the device.  For example, malware that is propagated via a Bluetooth connection cannot install itself without user approval.

All organizations should have a policy in place that prohibits wireless users from downloading software from internet sites.  Software installation should be centrally controlled within the organization at all times.  Just as desktop PCs have safeguards to prevent employees from downloading and installing software, so do wireless devices.  Some devices have application security features that prevent the installation of third-party software unless it is digitally signed.

6) Add Prevention and Detection Software

Malicious programs and unauthorized downloads cannot always be avoided.  Therefore, it is best that each organization arm their wireless devices with prevention and detection software that will help curb malicious attacks of this nature.  A wide range of products now exist in the marketplace for this purpose.  These products simply expand the security that is already built into each device.

The most typical security features of prevention and detection software include: user authentication alternatives, firewalls, virus detection, spam controls, memory and contents erasure, encryption, intrusion detection, VPN, and others.

7) Deactivate Compromised Devices

If a wireless device is lost or stolen, disabling service, locking it, or completely erasing its contents can be achieved remotely.  Always be sure to contact the wireless carrier in the event of a lost or stolen device.  To help avoid excessive charges from the wireless carrier in the event of a stolen phone, it is adviseable to obtain a police report that outlines the nature of the incident.

Some handheld units such as the Blackberry, have the ability to lock or erase its contents remotely through a built-in mechanism.  This action is triggered typically through the receipt of a message containing a pre-registered activation code.  A company policy should be established that informs users of procedures for handling and reporting lost or stolen organization-owned devices.

8)  Establish a Written Wireless Security Policy

All organizations should provide users with a written wireless security policy.  This policy defines the rules, principles, and practices for which the organization treats all of its wireless resources.  The policy should outline stated restrictions for personal use of the devices, such as limits on storage of personal information like music, photos, contacts, etc.

In short, the wireless security policy should reflect the organization’s views on security and its intent on keeping organizational data safe and secure.  The success of such a policy lies on its quality, implementation and enforcement.  A weak policy that is never enforced is not much better than no policy at all.

Submitted by: Karen Thatcher, CEO,  TelCon Associates, Inc.

The chances of getting audited by the IRS on this issue are somewhat slim.  It is in your company’s best interest to know the rules so you can make a sound decision on how you structure your corporate wireless usage policy.  If you have any questions on this issue, contact a TelCon Associates consultant.

Tax Implications and Rules for Personal Usage of Corporate Cell Phones

Corporate employers frequently provide their employees with cellular telephones and pagers to employees to conduct business. This can raise special tax concerns, due to the fact that these items are listed property under the Internal Revenue Code, and because employees may use them for business as well as personal use.

What is Listed Property?

“Listed property” includes items obtained for use in a business but designated by the Internal Revenue Code as lending themselves easily to personal use. This includes automobiles, computers, and entertainment or recreation-related items. In 1989, cellular telephones were added to this category. Although the use of these phones is much more widespread and economical today, they remain listed property and are subject to these restrictions.

For a for-profit business, the designation of an item as listed property has implications for depreciation deductions taken by the business and the computation of net income. However, this article focuses on the employment tax issues raised for employees of government entities.

Substantiation Requirements

To be able to exclude the use by an employee from taxable income from an employer-owned cell phone, the employer must have some method to require the employee to keep records that distinguish business from personal phone charges. If the telephone is used exclusively for business, all use is excludable from income (as a working condition fringe benefit). The amount that represents personal use is included in the wages of the employee. This includes individual personal calls, as well as a pro rata share of monthly service charges.

In general, this means that unless the employer has a policy requiring employees to keep records, or the employee does not keep records, the value of the use of the phone will be income to the employee.

At a minimum, the employee should keep a record of each call and its business purpose. If calls are itemized on a monthly statement, they should be identifiable as personal or business, and the employee should retain any supporting evidence of the business calls. This information should be submitted to the employer, who must maintain these records to support the exclusion of the phone use from the employee’s wages.

The following situations illustrate the application of the rules:

Example #1: An employer provides an employee a cell phone for business purposes. The employer’s written policy prohibits personal use of the phone. The IT department of the company or an outside telecom auditor routinely audits the employee’s phone billings to confirm that personal calls were not made. No personal calls were actually made by the employee. The business use of the phone is not taxable to the employee.

Example # 2. An employer provides an employee a cell phone for business purposes. The written policy prohibits personal use of the phone. However, the employer does not audit phone use to verify exclusive business use. The fair market value of the phone, plus each monthly service charge and any individual call charges are taxable income to the employee, reportable on Form W-2.

Example 3: A state agency provides an employee with a cell phone and pays the monthly service charge. The employee is required to highlight personal calls on the monthly bill. The employee is then required to timely reimburse the agency for the cost of the personal calls, and the employee is charged a pro rata share of the monthly charge. The value of the business use portion of the phone is not taxable to the employee.

Employee-Owned Telephones

If the employee owns the phone, the listed property requirements do not apply. Any amounts the employer reimburses the employee for business use of the employee’s own phone may be excludable from wages if the employee accounts for the expense under the accountable plan rules. See Publication 15, Employer’s Tax Guide (Circular E), for more information about the accountable plan rules.

Source: Internal Revenue Service 

These days, most employees and salespeople would consider the use of wireless devices more of a necessity rather than a privilege or convenience. Problems arise, however, with the sheer volume of wireless users, accounts and bills that even a relatively small company can accumulate over time.

Whereas 50 land lines may be shared within a company of hundreds of workers, cell phones are rarely shared or passed between employees. In comparison, 300 wireless users results in potentially 300 separate accounts and phones to control, track and audit.

The good news is that the wireless portion of your telecom department is ripe with potential savings opportunities. Even small accounts can reveal plenty of areas for considerable cost-reduction.

What is “Over provisioning”?

Deregulation of the telecommunications industry has resulted in a dizzying array of options and plans for wireless users. Over provisioning occurs when optional telecom features or plans are included or added to an account that do not enhance the end users’ job performance. This can also include phones that are not in use but still being billed and paid for. Inefficiency results in unnecessary overspending.

When auditing your company’s wireless services, be sure to check the following 4 key areas for instances of over provisioning.

Are You Overspending in these 4 Areas?

1. Paying for unused or unnecessary features or functionality.

Items and features such as voice mail boxes, 3-way calling, call-waiting, call-forwarding, group talk, etc. can add excessive monthly charges to a wireless account.

Each wireless account should be reviewed for any and all features that carry an additional monthly fee. If the feature does not enhance job performance or is rarely used, eliminate it.

2. Paying for nationwide plans when regional or state coverage would be sufficient.

Nationwide wireless plans are higher priced but do allow for in-network calls without roaming charges. An employee who never travels more than 50 miles from the home office may never use this feature. Always check to determine that the plans chosen for each employee are an exact fit for the usage needed.

3. Paying for wireless insurance coverage, pager protection or roadside assistance coverage.

On accounts with several wireless devices, paying for insurance protection is not cost-effective. On single accounts, insurance coverage may be a good choice, especially if the equipment is top-of-the-line and the coverage premium is reasonable and the insurance comprehensive.

Roadside assistance is one of those “peace of mind” features that can add $40 – $50 per year to each account. Let common sense be the guide here. If the user never travels for any length by car, eliminate it entirely.

4. Paying for wireless phones that have been lost, stolen or unused.

If a medium to large-size organization fails to properly track wireless inventories, duplication of billing for lost, stolen or even unused wireless phones may result.

Example: an employee is transferred to a new office and brings their wireless phone along. The new office provides them with a new wireless phone. The retired phone is kept inside a desk drawer only to collect dust – and in the meantime the bill is still being paid each and every month by the previous office manager!

Establishing procedures for ordering and maintaining accurate wireless inventories should be routine for organizations that want to keep costs down.

Be sure you keep and maintain a complete inventory of handsets along with their respective bills and accounts. Paying for wireless services that are no longer being used can be huge source of unnecessary spending.

Submitted by: TelCon Associates

The ability to control these escalating wireless costs within the corporate environment can prove to be a real challenge. Although a good percentage of companies attempt to reign in wireless spending through cost management programs established by IT departments and/or management, some experts estimate that up to 35% have no such programs in place.

As is the case with any worthwhile endeavor, the ability to master and implement fundamentals is what separates the pros from the amateurs. Begin to integrate the following wireless cost management fundamentals across your organization. You will undoubtedly see a considerable reduction in overall telecom expenses.

Fundamental #1 – Know Your Wireless Inventory

Unlike large telecom purchases (e.g. a new PBX), wireless inventory invariably comes down to many individual transactions. To effectively manage this seemingly endless flow of wireless devices, it is essential that you know which ones are in use and what is actually being paid for.

The first step in gaining control is to compile an inventory of every wireless device currently in use. This comprehensive list should include both enterprise-owned devices as well as employee-owned devices that are billed back to the company via monthly expense reports. Create a spreadsheet to track handsets, laptops, PDAs and other wireless devices currently in use. This simple action will invariably turn up devices that are not being used and therefore can be eliminated. Be sure to also list wireless contracts currently in place for each device that is in service.

Fundamental #2 – Know Your Wireless Usage

Wireless usage can be personal in nature. When choosing a wireless plan for employees, simply opting for the usual “bucket of minutes” or generic “pooled” plan may not be the most effective cost-saving option. Once you have completed an up-to-date inventory of all wireless devices, it is now time to dig deeper and determine the most cost-effective plans for each wireless device in service.

Gaining complete control over wireless usage can be easier said than done however. Many wireless devices in use within a company are employee-owned or at least employee-managed. Even though the company may be footing the bill, some employees may be reluctant when asked to relinquish power over their rates and plans.

To fully optimize wireless plans company-wide, gather and analyze wireless bills for the previous three months, then group into categories based on average monthly usage. You may find that a small percentage of employees are extremely high end users (e.g. traveling salespeople), another percentage average users and then another group whose usage is small in comparison. Once this data is compiled, it becomes much easier to assign the appropriate plans (and handsets) to individuals based on average usage. This approach is much more targeted (i.e. cost-effective) than simply throwing everyone into a “bucket of minutes” or generic “pooled” plan.

Fundamental #3 – Determine Ownership of Inventory

Wireless devices become part of the corporate landscape in one of two ways: through “official” corporate channels or through employee ownership.

To command complete control over wireless expenses it is best if the company owns each and every device in service. However, there will almost always be instances where employees have wireless contracts in their names. Typically, these charges end up on monthly expense reports in miscellaneous categories – oftentimes not under “telecom” expenses.

Determining ownership is critical to managing wireless expenses. Your initial inventory should include contract ownership information and the dates when contracts come due. Contract expiration is the optimal time for transferring ownership back to the company. (Plan on a certain amount of resistance from employees when this occurs.)

Fundamental #4 – Determine Management Responsibilities

Given the fact that the nature of wireless is somewhat decentralized and fragmented across a corporate organization, the area of responsibility for this category is often blurred and undefined. Who is fully responsible – IT? Telecom? Accounting? Senior Management? The answer can be one or a combination of all of them.

Before a comprehensive written wireless policy can be implemented (see fundamental #5), you must determine the level of responsibility of wireless for each department involved in the process.

For example, the telecom department may be responsible for keeping inventories and contracts up to date, whereas accounting may be responsible for auditing bills and dealing with employee issues, carriers and billing. Upper level management may take a more passive role or maybe choose to oversee the entire wireless department. On the other hand, perhaps the entire wireless area will fall under the watchful eye of the IT or telecom departments.

Wherever you choose to assign responsibility, be sure that each department is regularly accountable for their function in the system. Ideally, each can serve as checks and balances for the other, keeping the wireless portion of the company running like a fine Swiss watch.

Fundamental #5 – Establish a Written Wireless Policy

The previous fundamentals of wireless cost management lead to one thing – establishing and distributing a company-wide written wireless policy. Having a written policy serves not only as the impetus and pivotal document for keeping wireless costs under control, but it also sends a clear message to employees that the corporation is serious about how wireless devices should be used and what usage will be paid for by the company.

Keep this in mind when constructing your policy and determining “out-of-policy consumption” – it is virtually impossible to quantify and understand each and every wireless cost (i.e. call or use) when scattered among dozens or even hundreds of expense reports. This is the reason fundamental #4 is so important – get those contracts into the company name as soon as possible.

Your written wireless policy should include specifics on how and when wireless devices can and should be used – including any penalties for “out-of-policy” usage.

Fundamental #6 – Consult an Expert on Wireless Management

For companies that have no wireless cost management programs in place, the thought of mastering the above concepts can seem a bit overwhelming. They sound great in theory, but actually putting these fundamentals into practice can be another story.

If your company currently has a wireless cost management program in place, you may simply need to fine tune it. If not, consider consulting with a wireless cost management expert to complete the task for you. The cost-savings will more than pay for consulting fees incurred, and the long term savings will be substantial. Outsourcing your entire wireless management (even bill paying) can be very cost-effective and free up staff to focus on core business activities.

Submitted by: TelCon Associates

Today the overwhelming majority of coupons are paper-based, but the mobile phone is the ultimate individual marketing device and mobile coupon pilots show greatly increased redemption rates – often double digit percentages.

The Juniper Research report determined that the mobile coupons market is currently most advanced in Japan and Korea, but that growing numbers of mobile coupon services are being offered in the USA and Europe across all the main retail sectors including restaurants, entertainment, shopping and grocery. The developed nations of the Far East, North America and Western Europe are forecast to account for the major part of the market by 2013.

Report author Howard Wilcox gave more details, “Today the overwhelming majority of coupons are paper-based, but the mobile phone is the ultimate individual marketing device and mobile coupon pilots show greatly increased redemption rates – often double digit percentages.”

The Juniper report highlighted the increased benefit in user convenience and the greater efficiencies for organisations operating mobile coupon campaigns as the two key benefits for the adoption of promotional coupons on the mobile platform. However some significant hurdles were identified, including the lack of suitable point of sale (POS) infrastructure at the supermarket checkout allowing for the quick and easy redemption of coupons, which is critical to the consumer shopping experience.

Nearly all mobile coupon usage today is in the Far East region. However by 2013 Western Europe and North America will together account for almost 20% of coupon redemption values. Technology is also a factor, with most mobile coupons today delivered by a code (often bar code) and SMS. In future, Near Field Communications (NFC) will become popular in this application.

The Juniper Research study provides an analysis of the trends and issues affecting this market, exploring how the mobile coupons market will develop. The report provides forecasts of user take-up, coupon redemptions and values. The report also presents profiles of 6 key vendors and 12 mobile coupon trials and services pioneering in this developing market.

Whitepapers and further details of the study, ‘Mobile Coupons: Strategies, Applications & Markets 2008 – 2013′ can be freely downloaded from www.juniperresearch.com. Alternatively please contact John Levett at john.levett @ juniperresearch.com, telephone +44(0)1256 830002.

Further reports in the Mobile Commerce Stream are:

* Mobile Payment Markets: Digital and Physical Goods 2008-2013 (published in July 2008)
* Mobile Payment Markets: Contactless NFC 2008-2013 (published in July 2008)
* Mobile Payment Markets: Money Transfers and Remittances 2008-2013 (published in August 2008)
* Mobile Ticketing: Transport, Sport and Entertainment and Other Events 2008-2013 (published in October 2008)

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

Before you take the plunge with either of these established wireless devices, you might want to wait a few weeks to make your final decision.

Google is getting into the wireless game in a big way with the release of its new smart phone, aptly named the “G1″ – powered by its super secret mobile software platform called Android.

Google is fairly tight-lipped about the details of just what the software will bring to the consumer and business mobile user experience – but you can bet that if Google is involved in the software development, it should be a very interesting product.

There is no doubt that the Google Phone will bring more of the internet right into your shirt pocket.

Google has a way of making things very simple, fast and powerful. One advantage of having written the software platform for this new device, is that Google can bring all of its innovations directly to the mobile user – search, gmail, maps, documents, google talk, youtube, your calendar – and….you guessed it – advertising!

Rumor has it that the new “G-phone” will be priced at around $200 bucks, not bad considering the Iphone was twice as much when it debuted. Let the battle of the smart phones begin!

Here are a few confirmed leak details on the new phone.

Latest News on Google Phone

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Wireless carriers are now licking their chops at the thought of tapping into the next big profit center: wireless data transmission.

Text Messaging

The gold rush has already begun in the text messaging arena. Wireless users routinely shell out 10-15 cents (sometimes more) for a message that contains a measly 160 characters of text.

Why do the carriers charge so much for sending text messages? Because they can. Considering that we send about 28.8 billion SMS messages each month in the U.S. (according to wireless industry group CTIA), there’s a lot of money to be made, and when it comes to texting, we simply can’t get enough of it.

Picture and Video Messaging

They say a picture is worth a thousand words (texts?), so getting wireless users hooked on snapping photos of every day life and sending them to friends, family and business associates is a revenue generating no brainer.

And video messaging? Simply bandwidth heaven for wireless carriers. Verizon alone has reported earlier this year that its customers sent or received more 1.1 billion picture/video messages during just the first quarter of 2008.

Customers also completed 34.6 million music and video downloads. On average, Verizon’s wireless customers spent $11.94 a month on data services, an increase of about 33 percent from a year earlier.

Web Surfing

As users become adept at surfing the internet on their cell phones, perhaps text messaging will go the way of 8-track tapes and the 33 RPM record. Video chatting may be the next bandwidth hog and pot of gold for carriers.

Wireless broadband usage has already passed the point of no return.  In fact, 58 percent of Verizon’s retail customers owned broadband capable devices at the end of the first quarter of 2008. Mobile data transmissions accounted for about 20 percent of all wireless sales for the first quarter of 2008, the company said.

Wireless carriers are ramping up for more wireless data demands in the future as well. Verizon spent $9.3 billion on new wireless spectrum licenses in the Federal Communications Commission’s recent 700MHz spectrum auction.

With the rollout of the next-generation of wireless networks (4G) real-time video transmission from user to user may be the next big thing. Handsets, no doubt, will have the ability to send and receive video in real-time, enabling user to chat with family, friends and business colleagues at the touch of a button and from anywhere.

All of this spells one thing for carriers – REVENUE.

The Business Week video below contains more information on the unlimited data plans and the data enriched future of wireless carriers.