| The deregulation of the telecommunications industry | | | | identified as well. Your telecom representative should |
| during the 1980s made it possible for anyone to start a | | | | be able to easily explain the billing method(s) used and |
| telecommunications services company and begin to | | | | any surcharges or penalties that will be incurred if |
| compete with the likes of ATT. | | | | contract requirements are not met in a given month. |
| Present day telecommunications carriers can handle a | | | | 4. Are you a reseller, or do you own your own |
| myriad of services for both voice and data. But with | | | | facilities? |
| so many choices, how do you find and decide on just | | | | The Telecommunications Act of 1996 forced |
| the right one for your company? | | | | incumbent Local Exchange Carriers (LECs) to open up |
| The following is a list of questions that should serve as | | | | their networks to competitors. As a result, hundreds |
| a guide to helping to narrow down your choice of | | | | of CLECs (Competitive Local Exchange Carriers) |
| prospective carriers. | | | | were created to take advantage of the newly |
| 1. What experience do you have as a provider in the | | | | deregulated environment. These "resellers" are |
| telecom industry and what type of companies are | | | | companies that did not actually own the network or |
| current clients? | | | | switches, but rather "leased" them from the incumbent |
| After the deregulation of AT&T, the number of | | | | LECs. |
| telecommunications companies based in the U.S. | | | | Always ask your prospective telecom vendor if they |
| soared. Many have since gone out of business. In | | | | do indeed own the equipment and switches used to |
| many respects, the marketplace has returned to a | | | | transmit your telecom voice and data traffic. Going |
| psuedo "monopoly" state, with just a few carriers | | | | with a reseller is not necessarily a bad decision, but |
| currently dominating the industry. | | | | companies that have control over the network have a |
| The company you eventually decide on does not have | | | | distinct advantage over 3rd party resellers. |
| to be the biggest. It should have a successful, steady, | | | | 5. Who handles the account after we sign the |
| and multi-year track record for servicing similar | | | | contract? |
| companies in your industry. A little research goes a | | | | When it comes to telecom services, what can go |
| long way in this area. | | | | wrong probably will at some point in the future. For |
| 2. Do I have to sign a contract, and if so for how long? | | | | this reason, it is imperative that your telecom provider |
| Telecommunications carriers like contracts because | | | | be there when you need them. Billing issues, service |
| they "lock" in customers for a set period of time. Do | | | | outages, moves, adds, changes, etc. will require the |
| not shy away from companies who require contracts, | | | | intervention of a real live person to assist when help is |
| but do be diligent on the negotiation of the terms. | | | | needed. |
| Generally, the longer the term of the contract, the | | | | Be aware of the issues that can (and probably will) go |
| better rates you should be able to negotiate. Rates | | | | wrong, then insist that your account be assigned a |
| and lengths can vary widely, so plan on spending | | | | personal representative when they do. Ideally, the |
| considerable time hammering out the details of the | | | | account representative should alert you to more |
| contract to your advantage. | | | | competitive plans and services when they become |
| 3. What kind of billing increments and surcharges are | | | | available during the term of your contract. |
| involved or included in the pricing? | | | | Summary |
| Telecom carriers have devised a variety of methods | | | | The importance of your understanding your business |
| for billing customers for local and long distance | | | | needs is vital to choosing the most cost-effective |
| calling. Always ask your prospective carrier to lay | | | | telecom service provider. The main objective |
| out ALL billing options for both local and long distance | | | | should be to seek out and engage a telecom provider |
| calling. | | | | who first seeks to understand your business, then |
| For example, if your outgoing long distance calls tend | | | | provides efficient and cost-effective solutions to help |
| to be very short, ask if the provider offers 6-second | | | | your business prosper. The time and effort it takes |
| (or even 1 second) billing increment plans. Depending | | | | finding just the right one is well worth it in the long run. |
| on the monthly volume, these alternatives could add up | | | | If you engage a telecom consultant to work on your |
| to major cost-savings. | | | | behalf, they will be able to assist you in finding the best |
| Hidden charges or surcharges should be uncovered | | | | and most cost-effective carrier for your business. If |
| before signing any contract. "One time" charges (ex. | | | | you plan on going it alone, be sure to get your key |
| installations) and monthly recurring charges should be | | | | questions answered before making your final decision. |