The Telecom Agent Middle Man Myth

mpls providersOne of the reasons customers are hesitant about working with a telecom agent is that they feel they’re middlemen that drive up the cost of the services they sell.  This belief is 100% inaccurate.  

Almost every provider has an agent channel.  An agent channel is separate division that services independent agents and telecom consultants that sell the carrier’s services.  There are a few companies that don’t maintain an agent channel.  Mostly these are incumbent cable and phone companies that maintain a strong market position and don’t wish to dilute their pricing.

Typically, when they’re first getting started, telecom companies turn to agents to sell their services.  That’s because they can’t afford to staff a sales department.  Later on, if the company is viable, the company will hire its own sales staff.  To read the differences between carrier direct reps and telecom agents.  If possible, all carriers would forgo operating an agent channel.  Operating an agent channel reduces the amount of control a carrier has on its pricing.

When an agent requests pricing from a carrier, they are obtaining pricing from a number of other providers as well.  The companies know that if they want to win the business, they need to provide the most competitive pricing possible.  If a carrier has market strength, because they are the only cable company in an area or own a big chunk of market share, they usually avoid telecom agents.

So in actuality, telecom agents and consultants drive down the cost of a carrier’s services.  They certainly don’t add to their cost, because agents are only compensated when they sell a service, and they don’t require salaries or benefits.  It’s a fact that every carrier with major market share minimizes agent involvement.  There’s only one reason why that would be the case and that’s to maintain pricing control.  Otherwise, why would a company turn away individuals requesting to sell their services?

If you’re in the market for new phone or internet service and would like an expert, non biased opinion, contact a telecom consultant.  Telecom consultants understand the market place and can secure the best pricing and services and don’t demand much involvement from you or your staff.  If you’re an I.T. consultant or phone vendor, team up with a telecom agency.  Doing so will help make your clients’ service installations go smoothly; you can form a business relationship with the agency that will help you grow your business.

If you would like to receive more information regarding CarrierBid’s telecom consulting services or our agent program, please complete the form on the right side of this page.

About John Gelhard

Cofounder of CarrierBid - 20 years of experience in telecommunications - working for local phone & cable companies, competitive carriers, VARs and interconnects - including CenturyLink, AT&T, Cox & Telepacific.

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