In The Market for Telecom Services? Get the Most for Your Money!

by Tom Craig


Shopping for telecom services can be very confusing for any company, especially small and medium sized companies. Anymore, the telecom industry is very complex and in a constant state of change. Telecom technology advances at such a rapid pace, it is nearly impossible to keep up with it. As if they did not already have enough to focus on, now business owners also face a daunting challenge to make sound purchasing decisions from among the many competing telecom services, products and suppliers. So the important thing that needs to be done is to demystify the telecommunications industry and the products/services that are out there in the market place.


Let's start with an understanding of Bandwidth. Bandwidth is the main component of modern telecom services. It is essentially the pipeline that carries the services you purchase, whether it is voice transmission, internet or data services. The quality of the transmissions you receive is very much a function of the availability of bandwidth. Availability can be determined by how the building in which you office has configured itself. It will also depend on whether or not your supplier of telecom services has installed a fiber optic network, the advantage of which is that with fiber optics there is no limit to the speed available.The bottom line is that a fiber optics delivery  system is currently the most optimal choice for any telecom company.


Okay. You are ready to begin your search for a new telecom provider and/or new products/services to meet your needs. What are the issues you need to consider when you set out to do that?


Before you do anything, you need to carefully assess what your company's telecom needs are. What do you need the telecom services you buy to do for you? Next, budget how much you can spend. 


Then, establish the criteria for evaluating companies which provide the services and products you need. In your search, at minimum, make sure you focus in on the following considerations: 

• Does the telecom services provider deliver excellent services? 
• Are services delivered consistently and reliably? 
• How much is the telecom package you select going to cost you? Is it an affordable package for your company? 

1. Excellent Services: Does a telecom provider deliver excellent services?. How do we define "excellent services" from a telecom provider? A telecom provider is doing it's job when it has the ability to deliver the type of products that will best benefit your company and fully meet your needs. This consideration is important for any of the following configurations:

• Digital or analog voice applications
• WAN (Wide Area Network) applications to connect multiple locations
• Internet Services to allow you to connect with your customers and your vendors 
• The capacity to deliver any kind of service over a standard Ethernet network, used for most office LANs (Local Area Networks). 

The flexibility of an Ethernet network demands some additional discussion. It is one of the latest technologies to to emerge from the telecom world. A provider can deliver any type of service over Ethernet networks reliably. Typically, Ethernet can be plugged in just like your internet at home. It makes it far easier for an IT professional to handle because there is no need to convert a signal and setting up a Wan becomes as simple as setting a LAN, therefore more cost-effective. Ethernet has become the industry standard for its ease of scalability and simplicity, in terms of delivering services. 


2. Reliability: Will the telecom provider deliver reliable and consistent service? 
Reliability is an absolute must for any telecom company which wants your business. Your company simply cannot afford for telecom services to go down even for a short time. Downtime costs your company dearly and adversely impacts your sales revenue, interrupts normal business activities and affects overall productivity. 


An important way to evaluate a telecom services provider is to look at how well it has designed and built its delivery network. Take a look at how that delivery network is configured. That will provide you with an important clue as to what level of service you can expect, because some networks are more stable than others. 

• Long distance carrier to carrier networks: Telecom providers in this class usually build their networks with two paths to each end, creating a ring. If one path is damaged or has equipment issues, then the other path will still have the capacity to carry data and voice traffic.These networks are designed to absorb a maximum impact, natural or man-made. This type of network is designed for companies which cannot tolerate any downtime whatsoever.
• Local Provider Networks: The better local telecom providers (and only a few companies fall into this class) build their networks to the same standards as the long distance carrier to carrier networks. 
• Local Provider Networks: The remainder of the local providers of telecom services will use a different, less reliable and effective configuration. As service delivery gets to the end user, the network is often hubbed from a central location in a star pattern. From the hub, the flow of digital traffic is redirected to the final end user and radiates out of one of the arms of the star. While this is a very cost effective configuration to build, it creates a single path to the end user. However, if there is damage or equipment failure, then end users will be out of service until the problem is repaired. 
• Special Consideration: Who is the telecom provider in the building in which you office: It is important to know who the providers are in your office building. Understand the important consideration about telecom services, so you can ask intelligent questions to protect yourself and take advantage of every benefit from those providers. 

Look for a telecom provider that can demonstrate the level of reliability through built in service level agreements and reports showing adherence to them. 

3. Cost: How much is your telecom services package going to cost you? 

Most companies will start out by focusing on this issue. But looking solely at cost will not provide a good measure of just how good a deal you are getting or whether or not a company can or will deliver on it's promises to it's customers.

First of all, what kind of telecom company are you talking to?

• A telecom company which is actually providing the service and owns the delivery system.
• A reseller of telecom services.

The difference between the two types of companies is that the reseller of telecom services has no control over the network that delivers service. If your telecom system goes down and you are buying through a reseller, you have to call the reseller who then has to contact the telecom company which is providing and delivering service, the main carrier. 

The best solution is to use a carrier that owns and operates it own network. 

The reseller will offer services at a lower price, but you need to consider the cost of down time vs. the price. Often outages can last for hours, severely impacting your business. For the sake of saving a few bucks, do you want to take that risk? 

Look for a telecom provider who can provide multiple services on one bill. That will make it much easier to get the services you need and keep track of your overall expenses. 

Once you have found reliable companies which can provide you with the services you require at an affordable price, find out what new technologies are out there. These new technologies may offer you new services and capabilities, about which you were not aware. For a small incremental cost, you may be able to obtain additional services which can make your own company's operations run more smoothly and efficiently.

Summary:  At the onset, know what telecom services and products your company requires and find out what is currently available in telecom products and services in the marketplace. Identify provider companies which can provide consistently excellent services. Determine which potential providers can deliver consistent and reliable services. Find out how well they have designed and configured their delivery system. Once you have narrowed your choices of telecom providers, pick out the one which is preferably one which is actually providing the service and owns the delivery system. 

Coming Soon: In a future issue of The 610 Business Journal, I will explore the critical issue of network security. How can you best keep your network up and running, no matter what happens to your office.