Web site in the middle

TelecomSmart.com offers service providers bigger slice of small business market

Less than six months have passed since TelecomSmart.com began pitching its business plan to service providers. And like the millions of dot-com companies before it, TelecomSmart.com is relying on the Internet to match the telecom needs of small businesses with the most appropriate service offerings and prices from providers. Although it could be a winning situation for consumers - TelecomSmart.com aims to make them educated buyers - providers might also benefit by gaining an alternate route to tap into the small business market.

When consumers understand what services are best-suited to their particular needs and why, they will be less likely to switch providers without careful consideration, said TelecomSmart.com executives.

"Business customers will be able to make a more informed decision with confidence. Service providers agree that these customers will be less susceptible to churn," said Mark Mansour, founder and CEO of TelecomSmart.com.

"The more information consumers have, the less buyer's remorse they will feel," added Ed Heichemer, executive vice president of marketing and strategic development for the company.

TelecomSmart.com's Web site became fully operational on March 27, but the official launch will be in mid-April. Several service providers have expressed interest, including Sprint, EarthLink, Global Crossing, Concentric Network and UUNet, the company said.

For the Web site to be beneficial to end consumers and providers, it must present honest information - even if it means stepping on providers' toes a bit, said Tom Kiersted, research manager with IDC. "To make it worthwhile for providers, TelecomSmart.com has to first earn the trust of the business customer. To get that trust, it has to be forthright and honest."

The Web provides a good opportunity for comparison shopping, although time will tell how effective that model will be, Kiersted said. "If it weren't TelecomSmart.com, there would be another company."

When a service provider decides to work with TelecomSmart.com, the two negotiate how to represent the provider's products on the TelecomSmart.com Web site. Then the provider transfers data, such as product information, service offerings and pricing, to TelecomSmart.com's system.

"We believe that over time, we will be able to be more efficient than the brick-and-mortar distribution agencies because we will reach more people with less investment and infrastructure," Heichemer said. TelecomSmart.com also intends to keep businesses and consumers informed about product or price changes carriers have made since subscribers signed up for service.

Though TelecomSmart.com will not rely on advertising, Heichemer and Mansour are confident people who visit the site will talk about it. They also expect companies that plan to relocate or establish a new branch office will use the Internet to find an all-inclusive telecom solution.

When a small business wants to use the site to find service offerings that fit its technical and financial needs, it submits a match summary describing them. The TelecomSmart.com system responds with a match, detailing service providers' solutions. Similar to other carrier distribution agreements, TelecomSmart.com only earns commission if a transaction is made via its site. The percentage differs between carrier agreements, Mansour said.

"Service providers are interested in our approach because this one hits a larger mass audience through one distribution channel rather than having hundreds around the country," he said.

The Internet also can help companies launch one-day or full-month promotions in a fraction of the time required with standard sales models. "If providers use the power of the Internet, they can be more dynamic and [target] exactly where they want to attract business," Heichemer said.