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Companies that provide mobile phones for their staff are reaping significant commercial rewards, according to a new study.

In a survey of UK firms conducted by Juniper Research it was discovered that companies who give handsets to their staff find they enjoy greater productivity as well as cost savings.

Juniper forecasts that these tangible benefits are set to drive growth in the mobile enterprise solutions market in years to come to the extent that by 2014 it could be worth as much as £195 billion.

However, Andrew Kitson who authored the report, warned that a number of obstacles are still in place for companies who issue their employees with phones and said these were chiefly to do with policing usage.

He explained: "Enterprises need to be assured of total control over the devices their employees use. To do this, they need to limit the types and numbers of devices connecting to their networks.”

The market for business-focussed mobiles has grown exponentially in recent years with the arrival of high-power phones such as BlackBerrys and HTC handsets.

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