For multisite businesses, choosing how to manage internet service provider (ISP) relationships is a critical decision that can significantly impact operational efficiency and costs. Two main approaches are common: working directly with underlying carriers or using a telecom aggregator. Each has distinct advantages and challenges, particularly regarding invoicing, support, and overall complexity. Below, we explore these pros and cons to help you make an informed choice for your business.
What Is a Telecom Aggregator?
A telecom aggregator is a service provider that consolidates ISP services from multiple carriers into a single solution. They manage the relationship with the underlying carriers on your behalf, providing centralized billing, support, and provisioning.
Working Directly with Carriers
Pros:
Direct Control: By engaging directly with carriers, you retain control over individual service agreements, SLAs (service level agreements), and escalations.
Potential Cost Savings: In some cases, working directly with carriers may result in slightly lower pricing, as there are no intermediary markups or fees.
Carrier-Specific Expertise: Carrier representatives often have deep knowledge about their network capabilities and offerings, which can be advantageous for highly specific requirements.
Cons:
Complexity in Vendor Management: Managing multiple carriers across multiple sites means juggling multiple contracts, points of contact, and SLAs. This can become a logistical nightmare, particularly for businesses with hundreds of locations.
Fragmented Billing: Each carrier will issue its own invoice, leading to a complex and time-consuming accounts payable process. Reconciling invoices from different vendors can add strain to your finance team.
Support Challenges: Troubleshooting and resolving issues often require navigating the unique support processes of each carrier, which can result in slower resolution times and frustration for IT teams.
Using a Telecom Aggregator
Pros:
Simplified Vendor Management: Aggregators consolidate services from multiple carriers into a single relationship, streamlining management and eliminating the need to coordinate with multiple vendors.
Centralized Invoicing: A single, unified invoice covering all your sites and carriers simplifies accounting and provides clear visibility into costs.
Enhanced Support: Aggregators provide a single point of contact for troubleshooting and escalation, saving time and reducing complexity for IT teams.
Flexibility in Carrier Selection: Aggregators can often source the best carrier for each location, optimizing cost and performance without requiring you to establish relationships with multiple providers.
Cons:
Potential Cost Premium: Aggregators typically include a markup for their services, which can result in slightly higher costs compared to negotiating directly with carriers.
Dependence on the Aggregator: Your experience is tied to the quality of the aggregator’s support and processes. A poorly managed aggregator can introduce delays and inefficiencies.
Limited Transparency with Underlying Carriers: While aggregators manage relationships with carriers on your behalf, this can sometimes obscure direct insights into network performance or contract terms with the underlying providers.
The Role of Complexity in Decision-Making
For multisite customers, complexity is often the deciding factor. Businesses with multiple locations and diverse carrier requirements will likely benefit from the simplicity and support an aggregator offers. Conversely, organizations with minimal sites or internal resources capable of handling carrier management may find working directly with carriers more cost-effective.
Conclusion
Choosing between a telecom aggregator and working directly with carriers depends on your business’s unique needs. If managing multiple providers and invoices is overwhelming, an aggregator can provide significant value through consolidation and support. However, if your focus is on reducing costs and you have the internal capacity to manage complexity, working directly with carriers might be the right approach.
At Atlas IP, we specialize in helping businesses navigate these decisions, offering expertise in telecom procurement, vendor management, and cost optimization. Whether you need direct carrier solutions or are exploring aggregator options, we’re here to guide you toward the best-fit solution for your business.
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