The Value of Partnership: TNCI Walks the Walk with the Agent Channel

By Paula Bernier

Having strong, supportive partners has never been more important. Yet many channel partners have felt abandoned as legacy carriers changed the game for agents in an effort to protect themselves in light of the economic downturn and changing buyer behaviors. These legacy carriers have done everything from eliminating services to reducing agent compensation. In some cases they’ve gone as far as terminating agent contracts.

Amidst this storm of unpleasant change, however, TNCI (News - Alert) has been a welcome presence by providing agents with a partner on which they can rely.

Not only is TNCI a reliable and trusted partner, but it has gone the extra mile with some ground-breaking moves that clearly spell out its commitment to the agent channel.

INTERNET TELEPHONY recently spoke with TNCI President Brian Twomey about why the channel finds his company a truly valued partner, and vice versa.

How many agents does TNCI have as its partners today?

Twomey: TNCI has over 350 direct agent partners. We have several hundred direct agent partners. Many of these partners are master agents with hundreds of subagent relationships that TNCI also supports and provides detailed performance reports to these master agents for all identified subagent relationships.

The Agent Equity Plan offered by your company allows agents to build equity in TNCI in anticipation of a transaction in the near future. Tell us about the plan.

Twomey: The AEP is truly a unique program in the channel because it contemplates TNCI building to a transaction, [and] recognizes and rewards individual agent partner-generated revenue with equity value that is determined based upon the revenue developed by the entire channel as opposed to just an individual partner. [T]hen [it] applies the equity factor to each individual agent partner’s applicable revenue at the time of a TNCI transaction, while also providing evergreen earning protection for the agent partners.

Not only is the program unique in that it establishes these benefits in advance of a transaction, but the program and its terms were entirely developed jointly by TNCI along with the Agent Alliance. [T]he ongoing results of the program are jointly managed and tracked on a monthly basis by both groups based upon full review of all related results. The AEP also has an advisory council comprised of several members of the Agent Alliance along with several independent TNCI agent partners. This group also meets to review results/growth, progress toward a transaction and the business direction of TNCI.

Please elaborate on TNCI’s plans around the transaction.

Twomey: Our focus and objective is to build toward a transaction in the late 2011/early 2012 timeframe. We are already having discussions regarding transaction direction and valuation ranges based upon projected growth. This provides us with not only a specific vision toward a transaction but also with the insight regarding specific objectives that will further enhance our ultimate valuation.

In addition to all of these points of value and differentiation, TNCI is [a] Trans National Group Company, and TNG has [more than] 30 years of experience in acquiring, developing and managing businesses to result in deriving maximum value at the time of a transaction. Trans National Group has extensive knowledge relating to transaction options/direction and has successfully executed transactions for many of its businesses over the years. This means that not only do we have a solid backbone communications company in TNCI and a jointly-developed program providing equity to agent partners, but also a parent company with the experience necessary to deliver a highly-valued transaction plan.

All in all I believe that on close inspection any and all existing and prospective agent partners will agree that this is a very unique and highly valuable opportunity for the channel.

How many agents are currently involved in The Agent Equity Plan?

Twomey: All agent partners that we have direct relationships with are participants in the plan, and we have provided our master agent partners with contract documents that enable them to extend program participation to all of their subagents.

What is required on their part to participate in this plan?

Twomey: I believe we’ve made participation as simple as possible. All that is needed is either a direct relationship with TNCI, the Agent Alliance or a TNCI Select Agent and the execution of a very simple memo [that] provides full access to and participation in the program.

TNCI places great importance on the partnership it has with its agent base. Beyond The Agent Equity Plan, what things does TNCI do that exemplify its consideration for its agent partners?

Twomey: Clearly the AEP is the single most significant example of partner consideration given its depth and detail, but beyond this, TNCI has successfully operated for almost 20 years working solely and exclusively with the channel for all sales and revenue. Based upon this history and experience, TNCI has gained the direct insight to recognize what is most important for its agent partners.

Not only do we understand what is most important, but we openly plan and communicate business direction and strategy. This includes even the participation of key agent partners in the development of our annual budget and operating plan. This effort, which is no small undertaking, ensures that the focus and commitment of resources being planned by TNCI aligns with what the channel views as being the most critically important elements in order to ensure joint success.

What kind of compensation does TNCI offer its agent partners?

Twomey: Not only do we provide the equity and evergreen components I’ve previously mentioned, but we also recognize that while offering these benefits we must always provide extremely competitive rates along with similarly competitive residual commissions, new business bonuses (which I believe we introduced first to the channel), along with sales promotions and contests that may provide substantial ‘extra’ compensation to our partners.

What does TNCI provide agents in the way of sales, support and training?

Twomey: TNCI provides extensive support for our agent partners, and we are true believers in the importance of best-in-class back office support from technical provisioning services to customer care and proactive NOC (News - Alert) support.

Beyond back office support, on a dedicated basis we provide highly experienced field-based agent managers for our agent partners; dedicated sales engineering personnel to provide product and technical training; as well as pre-sales planning and support and headquarters-based agent support managers, who provide both pre- and post-sales support and are fully committed resources for all aspects of sales and order management, tracking and communication.

Again, TNCI relies solely upon the channel for its business, and therefore we have to get it. We not only know what’s most important for our partners, but we’re committed to continuous improvement of this support and work directly with partners to ensure that we are providing exactly this.

TNCI has established its own nationwide, private IP network called TNCInet. What services are offered over TNCInet?

Twomey: TNCInet has been designed to support all facets of IP communication, supporting voice and data needs for commercial customers of all sizes and shapes. Our offerings may range from high volume voice-only communications products for corporate locations and sub-locations to integrated communications solutions, which provide local, long-distance and data services down to a single DS1 level for customers with individual or multiple locations, to being able to provide distributed services to support individual work-at-home or telecommuting needs.

In addition to many variations of these services that we are able to customize to meet the needs of individual customers, we do also provide extensive data resale services through market leaders including Sprint (News - Alert), AT&T and many others. TNCI has also operated as a nationwide CLEC, reselling local services in all 48 contiguous states, and we have extensive wholesale relationships [that] we count on with many other facility-based network operators.

If there’s one message you’d like to convey to INTERNET TELEPHONY readers about TNCI, what is it?

Twomey: TNCI thoroughly understands the needs of the channel and the absolute need to provide … our agent partners with great rates and numerous compensation components. [E]ven more importantly … we fully recognize and deliver outstanding customer support.

Providing rates and compensation is the easy part. Many carriers can provide you with a solution that will help you win your customers’ business. What becomes truly important is the need to fully support your customers to ensure that they are fully satisfied and will therefore remain your customers, your income base. IT

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