Tuesday, August 31, 2010

The New Model for Resale

As the ILECs make the access resale model less profitable on a weekly basis, ISP's and CLEC's have to realize that this is UNE-P all over again. The signs are there, especially at the FCC and in the offices of lobbyists. Even Sprint is freaking out about the Special Access NOI.

The ILEC mergers and the accompanying massive layoffs have resulted in no domain knowledge at the core of the telcos. It also means that anything not automated will take much longer. We are already experiencing delays in installation and repair from the ILEC. It's broken.

I have often said Layer 1 or Layer 7. Either own the network or own the desktop. Those are the only 2 viable models.

VAR and MSP companies have already embraced it. VARs (value added resellers) have gone from pushing boxes (hardware) to selling services - something as simple as Hosted Exchange to something as complex as Firewalls or Network Security. VAR's are also now being targeted to be telecom agents as an added revenue stream.

Managed Service Providers have been riding on the coattails of their vendors into The Cloud, SAAS, and managed services, which is typically device monitoring.

Bandwidth is still important, but the profit can be built into the bundle. Did you know that on triple-play contracts there is a provision that prices can be increased for the video portion? The same can be done for the access piece.

The value addb is to take over the technology for the small business. Instead of just access, as much of it as you can handle or grab. But the other side is -- and this is where I will lose you -- you have to market and sell this. A yellow page add and a website from 2005 just won't cut it. Luckily, there are people out there who can assist you with the marketing and sales efforts. Call RAD-INFO when you are ready to take the next steps. 813-963-5884.

No comments: