Paul Schneider, Sales Director at Edgware based internet connectivity, communication products and services company Innzone says there have been some big changes in the broadband market over the last year and none more so than in the residential sector.
“Five Years ago whether you were a PC Retailer, SME focused IT company or telecoms reseller, broadband was seen as a product that, if you wanted any plan of longevity for your business what so ever, then you simply HAD to get involved in supplying your customer base to try and secure as much broadband market share as possible before the UK market was completely swallowed up by the big players.
The residential broadband market is now a dog eat dog world, more so than ever before with volume being the only way forward to ensure any form of sensible revenue. So how can any of the smaller connectivity resellers compete? Hundreds of resellers across the country are literally standing around and scratching their heads, unsure of where to go or what to do in the current climate and quite frankly, I don’t blame them…
Innzone has not only addressed this issue for themselves but have provided the very platform that any company would need to make the jump from the residential to corporate sector where margins are higher and volume is greater. In turn, Innzone are currently hand holding approximately 100 or so of their 300 connectivity channel partners that haven’t made the jump yet but want to change from focusing more on residential clients, to dealing with business clients.
Innzone started in November 2002 and began by wholesaling dial and DSL connectivity, via a vISP platform to many companies across the UK and soon built a channel of over 250 clients, reselling connectivity through their own branded platform. Business was booming.
What became more and more apparent was the number of acquisition’s taking place in the market; this indicated very clearly the urgency for companies to accrue more and more volume – a direct result of lowering retail prices and a more aggressive market place. How does a small provider compete?
With a channel of over 350 ISP’s, IT companies, PC retailers, telecoms companies and more Innzone has the buying power to not only provide wholesale prices that allow you to compete more effectively but also a range of additional services that we see as ‘DSL margin increase opportunities’; business DSL solutions such as network level VPN solutions and bonded DSL services for more bandwidth hungry businesses, increasing DSL margin by as much as 1250% each month and more in some cases.
The world of connectivity has changed greatly and DSL is quite simply now the base solution for all future comms services. It’s these bolt on products, that can drive the revenues earned through supplying connections higher. These services are here and are what all resellers should be looking at and asking about when speaking to potential new suppliers of broadband.
Broadband is the future, resellers should still be looking to supply it or potentially risk falling away.
When searching for a new supplier, ask what their future plans are. Companies only supplying DSL also face risk of not being feature rich enough to survive the test of time.
There are already DSL margin products in the marketplace. Make sure your chosen partner can offer these and compare them closely to what else is ‘allegedly’ out there from other providers.”