Is there any value left to Telecom?

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Is there any value left to Telecom?

Let's examine today's telecommunications sales landscape:

Case 1: If the pricing starts discounted at $9000, but ends up being sold at $2700, is there value in Telecom?

Case 2: If Carrier A sells a 1GB Private line for $17K between two lit buildings, how can Carrier B offer the same for $6800? 

Case 3: If BellSouth used to charge a company $680 for their service and now presents a "Winback" offer of $320, what's the deal?

Where's the value? Or is there none and it's just a matter of putting revenue on the books, any revenue?

How do you pay down debt and commissions when you sell underwater?

In Case 3, I just think that the ILEC's have been overcharging us for years (and still do when they can). Their monopoly mindset does not have room in it to fathom Competition.

Savvy customers play carriers against each other. Then they throw a reseller into the mix to really shake it up. Then they get an agent or account exec involved to really stir up a price war. The only one who wins is the customer, temporarily.

It's a race to the bottom.

In the real estate boom, many telecom sales folks left for RE careers. (I don't know how many came back). We are seeing mortgage folks moving into telecom. But how many professional telecom folks have left the industry?

It used to be that if you sold a FastE pipe, it was a good month. But today, you need to sell a couple per week to make a living. Are there that many deals to be had every month?

While price erodes and good sales folks leave, the Industry is training their customers that everything is FREE. From all the VoIP players, widgets, gizmos, to the executives in the ivory towers who just look at quarterly reports.


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