Frequently, when talking to a client for the first time, they express the opinion that the phone company is their only option for business phone or internet services. Basically, they believe that any other telecom company approaching them is only going to add to the cost of their services.

In fact, this belief is the number one stumbling block for telecom agents. It’s also the reason that cable companies do so well competing against the phone company.

1. Telecom Services Are Cheaper When Bought Through An Agent

Common sense makes people believe that competitors, such as telecom agents, who resell the phone company’s services, sell them at a premium. However, the opposite is true. Almost in every circumstance, the incumbent’s phone company’s services are priced higher than their competition.

The reason behind this anomaly goes back a long back. Years ago, the FCC had required the incumbent phone companies to provide local access circuits to their competition at wholesale rates to promote fair competition. The phone companies also cooperated because they wanted to sell long-distance services. The incumbent phone companies had to prove that there was an open competition for local service before they were allowed to sell state-to-state and international long-distance.

Competition for local phone services has been a boon for business customers. Telecom prices continue to drop. Not too long ago the average monthly cost for a business phone and the internet exceeded $1000. Now, those same services routinely cost less than $500 a month.

2. Business Users Have More Options Than Residential Users

Business owners are also exposed to the telecom options available for residential users. Their experiences at home can shape their opinions about telecom in general. But, don’t be restricted by the options you encounter as a residential telecom and internet user.

As a residential user, you might be aware of only a few options, such as the phone company, the cable company, and maybe some wireless solutions. However, this lack of awareness about the distinction between business and residential can become a major roadblock in exploring the options available.

Business Users Have More Options Than Residential Users

Some of the reasons why more service providers are attracted to the business sector than to the residential sector are as follows:

  • Higher Margins: Business telecom services are more expensive so, there is more money to be made.
  • Lower Maintenance Cost: Business services, although more critical, are typically utilized during business hours, so they’re easier to support. When the maintenance cost is lower, the margins are higher
  • Smaller Maintenance Area: Business customers are more consolidated as they are restricted to business locations. This makes it easier for the service providers to reach them. A carrier can install a plant in the telephone room in one office building and reach tens of customers.
  • Greater Long Distance Call Requirements: Businesses still utilize phone services (residential customers, more and more, forgo landlines) and make long-distance calls.

These factors attract more players or service providers into the market for business telecom services. However, at the same time, these also lead to increased competition and better prices for the end-user.

3. Competition in the business telecom industry

You know that there is more competition in the business telecom industry. You also know that the higher the margins for the service provider, the higher the scope of negotiations. Both of these imply that you can get better services at a lower than expected price. So, how can you benefit from this opportunity?

The best way to explore all your business telecom options and find the best rates is to work with a telecom consultant or telecom agency. Telecom consultants work with many providers and can locate the best pricing and solutions available, with very little involvement from their clients. You not only save money, but you also save your precious time!

CarrierBid Will Help You To Get The Best Price For Business Internet

CarrierBid can consult you well in this area. If you would like to receive more information on CarrierBid’s telecom consulting services or pricing for any telecom or internet service, please complete the form on the right side of this page.

Call us at

1-888-706-5656

for immediate service or fill out the
form and we’ll be in touch right away.
  • Please describe how we can help:
    What services are you considering to drive your business higher?
    What challenges are you currently facing?