Chapter 30: Re-Sale of Telecommunications Services


Overview

Telephone service sold by apartment houses, office complexes, and hotel/motels to their tenants, is known in the industry as Shared tenant services (STS). STS is a secondary service provided to customers, not the seller primary business. They are telephone service re-sellers having their own structure for re-billing telephone service. This is part of the reason why you pay more for a call from a hotel room than from a LEC owned payphone.  There are other environments in which telephone service is commonly sold as a secondary service. They are Universities and Hospitals.  

Common Forms of Re-sale Telephone Service

STS – shared tenant service -

Shared Tenant Service

·        Facility owns PBX/key system
·        Multi-tenant buildings or campus environments - may provide the telephone sets
·        Service seller does adds, moves and changes
·        System can provide long-distance, repairs
·        Local and long distance services can be provided at lower rates than tenants can obtain on their own
·        Tenants can be attracted to a single point of contact for telecommunications service
·        Tenants are relieved of the administrative costs of keeping records; handling adds, moves, and changes; purchasing services
·        Other services can be packaged with it like copying and printing, facsimile, computer-aided graphics, and other such services
·        PBXs can be partitioned – such that different tenants have their own PBX functionality

Hotel and Motel Service

·        Upscale properties have voice mail, a second line for fax and many offer Internet service
·        Long-distance service provider chosen by the hotel (can calling card access your own)
·        Accounting/billing system - the hotel is responsible for all charges for calls from room telephones except operator-assisted and toll-free calls
·        Properties can mark-up the service cost - beware
·        Property Management System (PMS) links the telephone system. Enables a new guest telephone service immediately – no billing confusion.  Housekeeping uses PMS by dialing a code when they have finished a room - keeps front desk informed.

Student Telephone Service

·        Similar to residential tenant properties
·        Each room occupant gets their own bill
·        Staff use trunks during school hours and then the students use them afterwards
·        Most universities use an outside vendor for billing
·        Vendors supply a storage device to collect long-distance details/bill students directly
·        Institution applies a monthly service charge
·        Each user gets Voice mail

Hospitals

·        Not in the re-sale business - most bills they deal with are handled by insurance or Medicare
·        Very little demand for voice mail, fax or modem
·         Most permit long-distance billed to room (for a price)
·         DID allowed wherever possible to minimize staff fielding of calls

Re-sale Opportunities for Property Developers

·        Telecommunications Act of 1996 allowed developers to consider re-sellers of telephone service

·        Developer can control the infrastructure, can buy services at favorable rates and re-sell them, or charge a fee to service providers to permit them access to the market you control.

·        Developer can choose to offer DSL and/or cable for Internet access

·        Developers can become an STS provider or provide infrastructure for service providers and share revenue with them.

Customer-Owned Coin Telephones

·        Prone to fraud and vandalism
·        Need rugged construction due to the elements
·        Problems and considerations as to where to place them and how often the need to collect the coins
·        Many businesses purchased coin telephones but found they were not profitable
·        Many have self-diagnostics that can be accessed by a terminal with a special modem to talk with the telephone’s computer
·        Call rating for long-distance
·        Instruments have rating tables built-in the telephone
·        Charge is displayed or announced by voice synthesizer
·        Rating not found then call is restricted or connected to a centralized rating system
·        Credit card readers
·        Charges may range from $0.25 to $2.00 for services such as weather and time

Coin Telephone Features

·        Call accounting – reports the details
·        Credit Card Reader
·        Amplification
·        Management packages – software package available to coin-operator for long-distance, billing, etc.
·        Real-time clock – used in call rating to adjust charge for time of day and day of week
·        Remote diagnostics
·        Security – alarms, hardened cases
·        Toll restrictions – difficulty in rating long-distance and collecting
·        Voice synthesizer
·        Combination phone – special phones to access e-mail, faxes, and computers including a keyboard for text messaging

Lack of Answer Supervision

·        Accurate call timing needed
·        LECs have coin-control circuitry in the central office where answer supervision is present
·        Coins signal central office circuitry – not available to privately owned telephones
·        How to register call completion:
·        Timing – the least accurate (number of seconds then coin is collected)
·        Voice energy detected on the line (do not collect for certain recorded announcements or directory assistance
·        Time and call progress signals.  (A combination of timing and voice energy methods)