Company cell phone for employees – Is it worth buying or renting?

Mobile devices have become an integral part of the modern working world. Companies are faced with the decision of whether to provide a company cell phone for employees or opt for a bring-your-own-device (BYOD) solution. But what are the advantages of a company cell phone for employees, what should you look out for when making your choice and is it worth buying or renting? In this article, we shed light on all the relevant aspects of this topic.

Why a company cell phone makes sense for employees

The provision of a company cell phone offers a number of advantages for both employees and employers:

• Clear separation of private and professional life: Employees do not have to use their private smartphone for business purposes.
• Increased data protection and security: company-owned devices can be used to implement access controls, encryption and MDM (Mobile Device Management) solutions.
• Increased productivity: Fast access to business applications and corporate communications.
• Better accessibility: A company cell phone is a great relief, especially for employees with customer contact or in the field.
• Cost control: Companies have full control over contract costs and usage guidelines.

Important criteria when choosing a company cell phone

Companies should take the following factors into account when selecting a company cell phone to ensure that the investment in company cell phones is worthwhile for employees:

Operating system

Android or iOS? While Apple devices are known for their high security and performance, Android smartphones offer more flexibility and a greater variety of models.

Performance & specifications

Depending on the area of work, business smartphones should have sufficient memory, a powerful camera (e.g. for documentation purposes) and fast connectivity (5G support).

Data security

A company cell phone should support secure login (e.g. fingerprint sensor, facial recognition) and be able to be managed centrally using MDM software.

Duration & sustainability

Companies that focus on sustainability should pay attention to durable and repairable models as well as possible take-back or recycling programs.

Buying or renting? Choose the right financing option

Companies have several options for providing their employees with company cell phones. The two most common options are purchase or rental.

Criterion	Purchase	Rental
Investment costs	High one-off costs	Low monthly costs
Flexibility	Low – Long-term investment	High – Devices can be replaced regularly
Technical up-to-dateness	Outdated over the years	Always access to the latest devices
Maintenance & Support	In-house	Often included in the rental contract

Especially for fast-growing companies or companies that rely on modern technology, renting company cell phones can be an advantage over buying them. Rental offers predictable costs, low risk of failure and often includes comprehensive support.

IT security for company cell phones: Important measures

Cybersecurity is an essential topic when it comes to mobile devices in the company. Protective measures should include the following points:

1. MDM systems (Mobile Device Management): These enable the central management and configuration of devices.
2. Regular software updates: security gaps can be closed at an early stage.
3. Two-factor authentication (2FA): Increases the protection of sensitive data.
4. Encrypted communication applications: For example, through protected messengers for business communication.

Tax aspects of a company cell phone

Whether buying or renting a company cell phone – business expenses for mobile devices are tax deductible. Please note the following:

• 100% business use: If the device is used exclusively for business purposes, the entire amount can be claimed for tax purposes.
• Partial private use: In this case, the private use portion should be documented and, if applicable, taxed with a non-cash benefit regulation.
• Rental as a monthly operating expense: Unlike depreciation on a purchase, rental payments are immediately deductible as an operating expense.

Conclusion: Company cell phone for employees – a sensible investment?

A company cell phone for employees is worthwhile in many cases. It increases productivity, creates clear boundaries between private and professional life and ensures IT security. The decision between buying and renting depends on the company strategy, with rental often being the more flexible and cost-efficient option.

FAQ: Frequently asked questions about the company cell phone

1. may employees use their company cell phone for private purposes?

That depends on the company policy. Many companies prohibit this for data protection reasons or allow limited private use.

2 What happens to the company cell phone upon termination?

The cell phone must usually be returned. In the case of rental devices, there is no need to worry about reuse or resale.

3. what about liability?

In the event of damage, it should be clearly regulated who pays for the costs. In many cases, an employer’s insurance policy will apply.

4. does it make sense to pass on older devices?

Depending on the model, a used company cell phone can still be put to good use or returned to the company via recycling programs.

Are you considering renting company cell phones for your employees? Take a look at our current offers and request a non-binding quote today!