The carriers

Long-distance carriers are not all alike. Some are small, specialized carriers, while others such as WorldCom are giant carriers offering a wide variety of services. The following sections explain the types of carrier that typically offer long-distance service.

Supercarriers
AT&T, Sprint, WorldCom, and Qwest all brag that they can be a “one-stop shop” and provide all the telecom services a business customer needs. Some people in the industry call these supercarriers, because they can offer not only long-distance service but also local service, data service, and wireless service. The main advantages of supercarriers are that customers can receive one consolidated bill, and the carrier might offer some services at cost. For example, Qwest may give rock-bottom pager pricing in hopes of also securing a customer’s data and long-distance business.

Regional carriers
In certain regions, a single independent long-distance carrier may earn a large share of the market. Through referral marketing, these long-distance carriers build a loyal following in their region. Later, they hope to break into the national scene. Two regional carriers that have successfully competed in the national marketplace are Frontier and McLeod USA. Regional carriers usually have low rates and are very attentive to their customers, but they struggle to manage large accounts with multiple locations.

Resellers
Supercarriers are eager to win as much market share as possible, so they allow their services to be resold by other companies. With a reseller such as Network Plus, a customer uses AT&T’s network but receives a phone bill from Network Plus. During the 1990s, resellers’ rates were very low so many customers switched to resellers. However, resellers are limited in the range of services they can offer, and they are not very good at troubleshooting customer problems. This is because they do not control the physical network or the actual billing records, only the rebilling records.

Agents
Agents are like resellers in that they do not have their own physical network of lines. Unlike resellers, they do not pretend to be an actual phone company. Instead, they are simply sales agents for long-distance carriers. Telecom technicians sometimes become agents for long-distance carriers. They are highly trusted by their customers and can earn extra commissions by selling long distance.

Most agents work alone or in a small firm. They represent numerous long-distance carriers and can usually offer the lowest rates in the industry. During a sales presentation, an agent may present proposals from two or three carriers. They are generally more loyal to their customers than to the carriers they represent. Agents usually give better customer service than the actual carriers, but an agent’s recommended carrier may not always be the best carrier for the customer. Agents are likely to recommend the carrier that pays the greatest commission, which may or may not be the best carrier for the customer.

Consultants
Most agents say they are consultants, but consultants never say they are agents. Consultants are independent of carriers and receive compensation only from their clients. Agents are paid by the telephone companies they represent.

Consultants are usually people who have worked for the carriers for many years. Because of their experience, they have become experts in their specific field. The two most prevalent types of consultants are cost management experts and technical experts. Unlike agents, consultants always make unbiased recommendations to their clients.