Long distance resellers help growing companies reduce costs.

While AT&T, MCI, and Sprint battle publicly for the hearts, minds, and long distance dollars of corporate America, long distance resellers are offering many smaller companies a viable alternative with lower rates and more personalized service.

Resellers, among the fastest-growing companies in the telecommunications industry, provide long distance service from major carriers at an average savings of 10%-25%. The reseller makes volume purchases of long distance service from companies such as AT&T, MCI, Sprint, and in turn receives significant discounts. The reseller then passes the savings on to its clients. By using a reseller, smaller businesses can receive premium long distance service at rates once reserved for Fortune 500 companies.

Currently, there are more than 300 long distance resellers nationwide. These companies primarily serve small- and medium-sized businesses that spend under $4000.00 per month on long distance. (The average bill is $300-$500.) These smaller customers represent a segment of the market where it is less cost-effective for the Big Three to do business. While utilizing the networks of these major carriers, the resellers perform all customer service and billing. This gives them the ability to offer a wide array of value-added services and billing options which growing companies can custom-tailor to fit their particular needs.

Resellers are not merely long distance companies, they are long distance consultants. A reseller evaluates both the business and telecommunications requirements of the client and works with the client to structure a suitable long distance plan. Because many resellers utilize multiple carriers, they will consolidate services to provide the customer the most comprehensive service at the most comprehensive service at the most affordable price. This is an on-going process. Keeping customers apprised of new services and technologies ensure continued benefits from their long distance plan.

Customized billing is another way in which resellers offer small- and medium-sized businesses exceptional cost management capabilities. Clients can "design their own bill" to effectively monitor calling patterns and analyze usage trends. Bills can be summarized by such criteria as area code, call duration, employee number -- even a summary of calls by day, evening, and night with a cost per minute breakdown of each. Businesses receive the calling information that is important to them, in the format of their choosing. Compare this to the bills of major carriers that supply the length of the call and final cost, but not the actual cost per minute.

To determine whether a reseller can provide a growing company enhanced service at lower rates, it is important to ask the following:

* What carrier or carriers do the reseller utilize? What services does it offer?

* Does the reseller provide 24 hour customer support?

* Will the reseller supply a written cost comparison and savings projection? By comparing frequently called numbers in three categories -- intrastate, interstate, and international -- resellers are able to provide a more accurate projection of a company's actual savings.

Finally, when considering the switch, it is important to establish that a reseller is reputable. Long distance companies are public utilities, and are subject to both state and federal regulations. Therefore, the reseller should be granted authority by the California Public Utilities Commission (PUC) and the Federal Communications Commission (FCC) to provide long distance service. Also, membership in the Telecommunications Resellers Association (TRA) provides added assurance. The TRA is a national organization that represents the interests of over 100 resellers, industry suppliers, and consultants. As a TRA member, the reseller must adhere to an ethical code of selling and operating practices.

Long distance resellers are value-driven organizations. Lower rates are only part of what they offer. By giving customers choices in carriers, services, and billing, all at significant savings, resellers offer a flexibility that is essential for growing companies with changing business and telecommunications requirements.

Steven Shaw is president of CSA Long Distance, a full-service telecommunications reseller based in El Segundo, CA.