Thursday, October 30, 1997

What to ask telephone resellers who call the office

By PAUL TULENKO / Scripps Howard News Service

Every few weeks you get the phone call at the office that drives you nuts: "Want to change to our long distance phone company?"

This is similar to the "I hope I'm not interrupting dinner" call from the aluminum siding company that bugs you at home. The difference is you receive the long distance call during business hours and, annoying as it is, a quick "No!" to this call might cause you to miss a really great deal!

Here's how to determine whether a deal being offered really will save you money or whether it's just another hustler out to make a fast buck off of you. "Listen-up!" (as they say in phone-land) "We'll give you the 'direct line' answers."

Just Who Are These People?

A long distance reseller is an opportunist. The big guys (AT&T, MCI, Sprint and others) own the major connections across the country. But their capacity for conversation is far larger than the need. So they sell this unused capacity to resellers at a discount, who, in turn, sell it to you for less than the big guys would charge you.

When To Listen:

Making the decision to connect with a long distance reseller company is simple. If you are paying between $30 and $500 a month for long distance phone bills, it's truly time to listen.

If you're paying less than $30, you are just playing 'switch' if you change, and your savings won't buy a cup of coffee. If you're paying more than $500 a month you should be negotiating your own private long distance rates with one of the big guys.

Another way of evaluating your 'listen-point' is when you are really growing fast and you see that $30 a month billing coming soon, and you are using at least three lines for a combination of voice, fax and modem.

What questions to ask:

The determination point for change is an easy one to calculate if you have the right answers. It's the questions you should ask of the caller that are the stumbling blocks. I asked Gerald Dunne Jr., president of Group Long Distance in Fort Lauderdale, Fla. (800) 521-5422) for a list of questions you should ask of the next caller.

Oh yes, before you make any switch, you should ask the same questions of your present carrier for comparison.

Here are the Top 10 questions you need to ask:

1.) What is the minimum billing segment, one minute or 6 seconds. (For example, if you talk 2 minutes and 4 seconds, will you be billed for 2 minutes and 6 seconds or for 3 minutes. Costs can escalate when you make a lot of short calls.)

2.) Does the billing rate change with time, and if so, what time zone controls these costs? (There should be at least three time segments, day, evening and night, and they should be reasonably segmented.)

3.) What are the billing rates for intrastate, interstate and international calls?

4.) Does your company bill direct or must I go through my local phone service provider to handle disputes? (Most local providers say something like: "Well, you're going to have to talk to 'them' if you want a correction, we just pass on their bills.")

5.) Do you provide conferencing? Calling cards? Prepaid debit cards? Internet access? How much are each of these and why should you use their services?

6.) Is your underlying carrier one of the big guys (positive) or some smaller lesser known carrier that also rents line space from one of the big guys? (The fewer companies between your phone call and the AT&T, MCI or similar line providers, the less problems you will have.)

7.) Are you licensed in all states? (A strong, well established company can help you with challenges when they occur.)

8.) Are you a private firm (not-so-good) or a well-regulated public company?

9.) How long has your company been in business? (Although a brand new company may offer you lower rates, their track record may be spotty. Check this out carefully!)

10.) Is your company a member of the Telecommunications Resellers Association? (Membership implies acceptance as a major player in this competitive field as well as somewhere to complain if you don't get the service you bargained for.)

(Questions may be directed to Paul Tulenko through his web site (http://www.tulenko.com) or by mail a SASE to Paul Tulenko, c/o The Albuquerque Tribune, PO Drawer T, Albuquerque, NM 87103.)