3 Types of Telecom Providers and What’s Best For Your Biz

Your wireless costs might increase because of COVID-19 – but they won’t if you follow these 3 steps.

telecommunications providersOne of the biggest challenges for you as a CEO and top management leader is finding strategies to maintain cost efficiency.  You must also balance this with delivering only the best products and services for your customers and shareholders.

An area that is overlooked or too often accepted as a fixed and necessary cost are services from your telecommunications providers.  There are different types of service carriers available, so a deeper understanding of who they are, and what they offer, will help you gain control of your telecommunication costs.

There are three types of telecommunications providers, and they are separated into tiers. Each of them represents a varying level of autonomy and ability to provide services for your corporation. The three tiers are:

Transit-Free Providers

Providers in the this tier are able to provide telecom services to their clients without needing to transit another provider’s network.  This gives providers in this tier the ability to provide the broadest range of services without relying on another company’s networks.  Not surprisingly, these providers are the most recognizable names in phone and data services at the consumer and corporate level.  They also deliver the fastest data speeds and most reliable networks. They are able to provide a broad range of services in one package, allowing you to simplify many aspects of your telecom needs and have them delivered from one source.

Internet Transit and Peering Dependent Providers

Many of the biggest internet service providers are tier 2 networks. These include companies like Comcast and Virgin Media. They are able to provide their services through a combination of peering and Internet transit purchases.  Peering traditionally allows one network to pass through another and share users, meaning that both gain from the agreement. It also means that these providers need to maintain a focus on delivering one type of service, such as mobile phone access or Internet. Another method of achieving access through the tier 1 networks is by paying transit fees, although these are often hidden by non-disclosure agreements. While they can provide excellent service in one or two areas, it is most common to source from a variety of tier 2 providers in order to meet your telecommunication needs.

Regional and Specialty Services Providers

The third tier of telecommunications providers relies completely on tier 1 and 2 providers for network access.  They are able to provide access to their customers by selling the access that they have purchased through Internet transit.  While this might seem to put you at a disadvantage as a client, it can free your service provider to give you more personalized service in a specific communications area. It also gives you the opportunity to be served as a top client, instead of one among many with a tier 1 provider.

It is important for you to understand how the three tiers function in order for you to make the best decision for your company.  You can now better focus on keeping your costs in check while gaining the telecommunications access that you, your corporation, and your clients rely on.


[author_bio username=”Ken” name=”yes”]

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