Small businesses in Atlanta rely heavily on their telecommunication services, including local landline, long distance, and wireless technologies as their main source of communication with clients, customers, and suppliers to keep their business running and in the black. These small business owners shop for telecommunications services and occasionally switch service providers to cut costs and get the best value for their small budgets.

But instead of saving money on cost effective and economical telecommunications services, small businesses are getting a wallet flush from 'Big-Box' providers.

The SBA Office of Advocacy survey on 'Small Businesses' Telecommunications Use and Spending' found that, "As in so many other areas of regulation, small firms are affected by telecommunication policies in a manner disproportionate to their size ... The cost burden of telecommunication services is much higher for very small businesses than for large businesses. The survey found that very small firms pay four times more per employee for local and long distance services than large businesses do."

The telecom industry might be a lot like socialized medicine - the industry gives you what they think you need, and when they think you should get it-if these decisions do not apply to your business or solve your problems, too bad. It is time that the telecom industry became more like Burger King - have it your way.

In recent years, we have seen tremendous growth in competition within the telecom industry. However, the large carriers still exploit small businesses with their appealing brand but 'smoke and mirrors' services and products. Many of their new competitors have followed their lead, and offer little true choice beyond whose logo appears on your bill.

Small and medium-size businesses are hurting because they don't have in-house IT staff to make informed purchase decisions for them and they don't have the buying clout of a larger corporation. The NFIB also reports that, "Seventy percent personally evaluate their businesses' telecommunications options while 22 percent delegate it to an employee. Just 4 percent seek the advice of an outside expert," the SBA says.

When small business owners are busy running their day-to-day operations, quick decisions are made that later prove a penalty. The industry giants are focused on their bottom line...not the limited budgets of small business.

Unauthorized Purchases
FCCI is a local non-profit that opened a new office in Atlanta.  We obtained multiple quotes for them for phone and Internet service.  One of those quotes was from a 'Big-Box,' but they selected a different carrier.  On the day of the installation, a sales rep from the name brand corporation showed up, reason unknown, to install their service, even though service was never ordered from them.

When a 'Big-Box' company technician shows up at the door, most business owners assume their presence is appropriate, let them do their work, often paying installation and some monthly charges before the "mistake" is caught. However we recognized the error and turned the installer away, making sure FCCI was never billed.

Miles of Red Tape
Another local phone system customer needed their system installed within a few days.  They moved from one suite to another in the same building, and were told that in order to accomplish the move, 'Big-Box' must disconnect their DSL for a day.  Forget the fact that the wiring for the building is all in one room, and moving the DSL service should be as simple as reconnecting two wires.  After all, procedures are procedures. Right?

Decisions for larger Telco corporations can be tied up for days between offices, third-party outsourced service providers, and customer service representatives monitoring your call 'for quality control." Once a business has ordered services or products, it's a helpless feeling that is as if you've been marked 'Customer' and put into a huge pile of one-size-fits-all technology solutions with no real human attached on the other end to answer your questions.

What You Can Do?
In managing technology operations for many small businesses during my career, one of my many frustrations has been the inconsistencies between major provider's sales pitch and what services and fees actually show up on your bill.  

* Take the Initiative to Research What You Are Purchasing - Most small businesses buy major products such as phone systems sight unseen, that's how the 'Big Box' companies up sell hardware and unnecessary service features, the purchaser sees the products the first time when the technician is installing the systems and later faces hidden service charges, monthly fees, etc. Companies that allow customers to see and try major technology products such as the small-office phone systems and network security lines, in a "safe" environment to see and try before buying help to solve some of the hidden charges problem. Customers could once again be able to confirm that they are spending their IT budgets wisely.

* Make the Providers Compete For Your Business - A survey from the National Federation of Independent Business (NFIB), reports that; "Forty (40) percent of small-business owners shopped for a new local telephone service provider in the last three years. Seventy-one (71) percent of small-business owners who shopped eventually switched providers." You're not the only one shopping for a deal along with quality service; ask them for their best offer.

* Avoid Long-Term Contracts or "Preferred Customer" Agreements - One constant in the telecom industry is change-new providers, new technologies, additional service options, etc. If you sign a long-term agreement, it may seem to save you money on the front end, but you will be locked in and unable to take advantage of changes in the industry that could improve your business.

* Be Wary of Bundled Packages - The SBA report states that, "Bundled services are a combination of services that telecommunication providers package and sell to consumers at prices generally lower than the cost of buying these services separately. Sixty-five (65) percent of small-business owners bundle their local and long distance service plans with a single provider." While cost consciousness is the general idea, you actually might not always get a deal with a bundle, double check the pricing and see if a la carte would work better for your needs.

* Shop Around - A local Web design firm operating as a virtual agency of five, recently shopped for a new Telco provider and after being given an estimate for thousands more than their budget allowed, including hundreds of feet of wire and drilling required they continued to seek proposals, knowing a better solution had to be available. Telephone and Internet service should be delivered in a form and on a schedule that meets the needs of your business, and not the convenience of the vendor. Until we all stop accepting what the vendors tell us we can have, and demonstrate our willingness to take our business elsewhere, the status quo will rob our budgets and sanity.

Instead of accepting the telecommunications nightmare, here are a few action points:
* Research local technology providers to find one with quality customer service standards.
* Make sure to select a provider that is not in any partnership with one or two Telcos. Otherwise, they are tempted to only give you quotes from the vendors they represent. 
* Do your homework and work on asking the right questions: Do I really save money with your packaged services? Do I really need all the services in the package? What options do you have for start-ups?
* Don't fall victim to bundling by accepting a first quote at face value, ask for a la carte solutions or if smaller service packages are available.
* Beware the big name providers offer products outside of their specialization. For example, cable companies offering phone services. Go with a company that focuses on providing their primary services with years of experience to back them up.

Robert Covington is a telecommunications and Internet security expert of more than 26 years. Covington has experience in technology and operations management for several large companies and organizations including the University of Miami, Digital Communications Associates, Innotrac and Teletrack. He can be reached at 678-341-2750 and online at http://www.enablebusol.com.