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“Peter possesses a keen sense and insight for turning telecom services and products into customers and dollars. He is passionate about this industry, his work and the people he serves. Visit his site, read his blog and sign up for his newsletter at marketingideaguy.com and you will discover what makes Peter a sought after marketing consultant.”

Cynthia de Lorenzi, CEO, Patriot Computer Group

3 Reasons I Get a Rash from my Industry
On Rad's Radar
Monday, 23 August 2010 06:56

Actually, I don't get a rash from the Industry but from a large portion of the people in my Industry.

There are so many changes happening right now - every where. Our Industry is experiencing so many factors: declining prices, hyper-competition, anti-competitive actions, forbearance, Net Neutrality, and so much more.

Agents are locked in their business model and don't want to step outside the comfort zone. All growth happens when you are uncomfortable. 

Too many new things to offer your clients that are so NOT TDM: managed services, data back-up, message archiving, Hosted PBX, SIP Trunking, Energy and Natural Gas and The Cloud. The funny thing is that many people in the Industry still don't understand SIP, VOIP or MPLS, so the Cloud is going to really knock them for a loop. But let's not forget that salespeople don't take training because they know everything.

But right now, the same way of doing things that worked from 1996 till now, won't work going forward.

This goes from telecom employees as well as Agents. I have seen many channel managers and account managers who don't know jack about what their employer sells.

In the 80's, most of the Fortune 5000 hoisted training upon its employees. In fact, there were a number of companies that had excellent sales and management training that was competitive to get into. IBM, McDonalds, Xerox to name a few.  Today, companies have cut the training dollars. There is still product training, but very little management and sales training.

Our Industry used to sell on Value; now it's all commodity services sold on price (cellular voice and data, broadband, T1's). Notice that the best deals on DSL must be purchased online. Eliminates the overhead.  Transactional sales are still happening mainly because that is the structure that has been in place for years. It's what is known. No sales training.

Metro Ethernet is starting to sell, more because of the limits on T1 and the perceived speed. By that I mean, the market talks about 3G and 4G speeds, 6MB DSL, 50MB FiOS, 100MB DOCSIS 3.0, so what telecom buyer wants a T1 at 1.5MB -- even if that is probably enough for most businesses. Add to that the depression going on in Metro Ethernet pricing and you can see why it sells. (10MB used to be about $1200 with a loop; now it's about $900 -- and some CLEC's sell it for even less!)

Look at Bandwidth pricing: HE and Cogent have dropped the rates so low, you would think that everyone was in a telecom hotel shopping for a GigE port! Unlikely! Most still only want FastE but now they want a 100MB commit on a GigE port at GigE port pricing. The Industry is undermining itself. How many GigE ports do you think you can sell?  How many of those do you think will be in a Lit building?

And according to a recent FCC study, consumers aren't getting but half the advertised speed! But wait! It's all "best effort" or "up to". Marketing dribble. No wonder cable is winning.

Notice that many of the INC 5000 telecom companies are, wait for it, Hosted PBX companies. Integra, FiberLight, Host.Net and Telx are notably different companies. Fiber, Cloud, Collocation. Three big buzz words right now.

Meanwhile, the ILEC's have laid off so many workers that installations and repairs are often delayed. PF! The domain knowledge necessary to keep the telco house of cards intact is missing. The only jobs I want to see outsourced next are the C-Level ones!

The only innovation comes from the handset makers - Apple, Android, Samsung, HTC. The gear makers should be doing some R&D but the stimulus debacle almost caused disaster there - with spending all but suspended while companies waited for government grants. (And the NTIA and RUS screwed the pooch by taking so freaking long to hand out the grants. So long in fact that Congress has been re-purposing almost $1B for other expenses like the war.)

The Duopoly is again lined up against the FCC. Ah, Net Neutrality. If only anyone understood it. If only, just once the ILEC's would actually help America instead of hurt it. We need broadband. It stimulates the economy. Our service job culture is transforming more and more into a Freelance society. All these freelancers need broadband to connect to job databases, social networks, and customers (the W-2 term is employer, but more and more the W-2's are 1099's under a contract).

Freelancers are what Agents are. You sell, you get paid. On to the next prospect. With prices dropping, Agents have to sell more and more to make less. Mobile broadband is a must.

Best discussion about this comes under Broadband is a Utility and Common Carriage regulation is the right way to go.

For all the griping that goes on, Agents only want to organize to push back against the carriers. But even then, not so much. It's the business they chose, but most don't pay attention to it. Agents kind of remind me of ISP's. At one time, there were over 7000 independent ISP's in this country offering Internet Access to a majority of America. The Independent ISP's were the ones who introduced dial-up to every corner of the nation and then foisted DSL on to the marketplace. Once the ILEC's got in the game, it started changing. But no one was really paying attention. Business models didn't change. New skills weren't added. Strategic partnerships were't made. Instead, many sold out. The remaining ones today just got a swift kick in the groin by the ILEC's, but instead of getting mad and changing course, have simply said, "Thank you sir. May I have another next year?" I fear Agents will be doing the same thing, since carriers don't need you to sell stuff that they can sell via a website or a call center.

Read more... [3 Reasons I Get a Rash from my Industry]
 
Kindness Marketing
NSP Strategist
Saturday, 21 August 2010 06:34
Marketing through kindness is something new. Here's a story about Windstream employees handing out gas cards, playing trivia with people in the audience, giving pet food to a shelter. These are the stories I remind my clients to tell. That is what social media is for.Facebook it. Tweet it. Blog it. Talk about the how cool your employees are. Talk about how your employees support the community.

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Cbeyond Makes a Little Money
NSP Strategist
Saturday, 21 August 2010 06:26
Cbeyond had a big quarter with $112M in revenue. Net income was like $148,000. Whoops. Operating expenses equal their revenues.Maybe it's deal with Clearwire for 4G will add revenue, but I doubt it will add anything to the net income. MVNO is for stickiness and to take a bigger share of the total telecom spend of the client. It has nothing to do with income.Other interesting numbers from Yahoo

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Who Will Own the Home Gateway?
On Rad's Radar
Saturday, 21 August 2010 06:19

In the article about the Intel-McAfee merger, I mentioned that Cisco's acquisitions have not actually resulted in any great innovation. The Flip is still the same old camera. The cable box is certainly cheaper, but less reliable. (I have gone through 3 HD DVR set-top boxes with BrightHouse Networks in less than a year.)

Back to the set-top box. Why isn't the set-top box the gateway to the home network? When Cisco bought Linksys, the impression was that the home network was a lucrative market to be exploited. Why is it that the Blu-Ray player has become more of a gateway for entertainment than the set-top box (STB)? My LG Blu-Ray streams Netflix, CinemaNow, YouTube, Pandora, plays my iPod, and more. My STB barely plays and records HDTV.

On that same note, what happened to Microsoft? The Xbox is an entertainment gateway. Blu-ray, a hard drive, games, streams Netflix, Divx movies, and music from a NAS. Maybe even ESPN soon. This is more than I get from a STB.  But here's where Microsoft goofed. The Xbox doesn't have USB connections and it could be the STB. 

The Wii is in a similar boat. It is the entertainment hub but stops there. Consumers want simple (mainly because consumers are simple). Most women don't want cables all over the living room, so one box for everything (even if it was in components that conne cted together) would be a plus.

Apple is rolling out iTV. Maybe if Google makes a game console, Microsoft, Nintendo, Sony, Apple, or Cisco will make the one entertainment gateway for the home network. The accessory sales alone - wireless speakers, extenders for other rooms, NAS, media gateways, Blu-ray, external hard drives, etc. - would be a fortune.

Read more... [Who Will Own the Home Gateway?]
 
9 Reasons You Aren't Successful
NSP Strategist
Saturday, 21 August 2010 06:18
This blog post, titled "9 Reasons You Aren't Successful", was pointed out to me by my publisher, Rich Tehrani at TMC. The 9 Reasons actually amount to just two: No Focus and No Execution. Plan something, then go go it. Period.No plan. No goal. No action towards your goal. Just being busy instead of productive. All these contribute to stagnation and failure.

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Not a Political Piece
On Rad's Radar
Friday, 20 August 2010 13:14

This isn't meant to be political but more like here are some thoughts for digestion.

This first is from FCC Commish Copps (thanks to Benton Foundation):

"I think most of you understand how important the Internet and access to high-speed broadband are to the future of our country. This incredible technology intersects with just about every great challenge confronting our nation-whether it's jobs, education, energy, climate change and the environment, news, international competitiveness, health care or equal opportunity.

"You know, history is pretty clear that when some special interest has control over both the content and distribution of a product or service -- and a financial incentive to exercise that control -- someone is going to try it. That's a monopoly or an oligopoly or whatever you want to call it -- I call it a danger to America."

The second is from Al Franken:

"But there's an even bigger issue here. It's that when government will not act, corporations will. And unlike government agencies, which have a legal responsibility to protect American consumers, the only thing corporations care about, the only thing that they have a legal duty to promote, is their bottom line."

"We can't let companies write the rules that they're supposed to follow," Franken added, "because if that happens those rules are going to be written only to protect corporations."

Net Neutrality is largely misunderstood by the public. By and large though, if a company is going to spend millions to get their way, the consumer will be getting that bill for lobbying, astro-turf funding and advertising.

Finally:

"Terrorists will never defeat America, but Jersey Shore, like necrotizing fasciitis (flesh-eating bacteria), could rot us from within. - Alan Weiss

Read more... [Not a Political Piece]
 
Two Cool SIP's
NSP Strategist
Friday, 20 August 2010 12:10
One cool SIP tip is this research that says SIP Trunking is being sold to enterprises not just on price but on RELIABILITY. That's something to mention in your marketing.The 2nd cool thing is Glass phones:Larry Lisser pointed out this new smartphone type platform to me today. Cool gadget.

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