The Master Agent Channel

December 22, 2009

Master Agent Offers Ethernet Options for Added Flexibility, Reduced Costs

By Erin Harrison

Executive Editor, Strategic Initiatives

With customer satisfaction at the top of the priority list, Chicago-based Telecom Brokerage (News - Alert), Inc. has expanded its portfolio of services to include Ethernet options, which supplements the master agent’s telecom services.

According to TBI’s John Phelps, sales manager, the benefits of TBI’s Ethernet options include flexibility, reduced costs and access to all tier 1 providers’ networks as well as major regional players.

“TBI also offers the ability to put together special pricing schedules with some vendors to make offerings more attractive. In addition, our in-depth industry knowledge allows us to offer alternative solutions when we know the underlying application,” he said.

As Phelps explains, in addition to providing their customers a broader level of service, TBI’s Ethernet options also give agents several distinct advantages.

“Many times, the difference between winning and losing a deal comes down to knowing which carrier can provide the best service in each particular market. Agents tend to stay in their comfort zone as far as carriers and products are concerned,” he said. “However, when our channel managers and back office support team can develop a trusting relationship with an agent, we have found that bringing new carriers and solutions to the table almost always increases our win ratio. Being able to speak knowledgably about each carrier’s options, which promotions are available and how this will affect the agent’s bottom line is key.”

Phelps said that he personally sells between two and four Ethernet circuits, 50mbps or higher, every month – the majority of which are DIA circuits. However, the demand for private network and MPLS applications using metro Ethernet networks has been increasing steadily, he added.

“Among the agent community, it seems that everyone is looking for Ethernet options whenever they are available. So I do see this option gaining traction, though it is still a relatively new technology and is not accessible in all markets. As this option becomes more readily available, I can only see demand rising,” Phelps said.

In addition, TBI is already seeing increases of small businesses using Ethernet over copper and smaller “fast E” type solutions, both which allow for significant cost savings.

“It is not uncommon to see a 3 to 5 mbps connection for $500 to $700 per month, which is well below the typical cost of a bonded T1 solution,” Phelps said. “In this economic environment, the ability to quickly identify cost savings while providing a better network configuration allows our agents and direct sales group to continue to thrive, rather than experience the decline that other industries and organizations have seen.”

In a recent TMCnet interview, Ken Mercer, senior vice president of TBI, said that in a challenged economy, the benefits of upselling for the customer include additional ways of streamlining, saving money, consolidating services, simplifying services and possibly even reducing headcount.

Erin Harrison is a senior editor with TMCnet, primarily covering telecom expense management, politics and technology and Web 2.0. She serves as senior editor for TMC's (News - Alert) print publications, including "Internet Telephony", "Customer Interaction Solutions", "Unified Communications" and "NGN" magazines. Erin also oversees production of TMCnet's weekly iPhone (News - Alert) e-Newsletter. To read more of Erin's articles, please visit her columnist page.

Edited by Erin Harrison

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