PRINT
EMAIL
COMMENT
DEL.ICIO.US
DIGG
OUR PREMIUM CONTENT
The Kiplinger Agriculture Letter
The Kiplinger California Letter
Kiplinger's Biofuels Market Alert
Kiplinger's Retirement Report
SUBSCRIBER HELP
CURRENT LETTER
Climate Change Costs
Loom over Businesses
PREVIOUS ISSUES
Small businesses will see lower telecom prices, stemming from a move by cable operators to snatch more market share from phone companies by going after business customers with about 20 phone lines or less. Larger firms won't be in play because they require more-powerful Internet connections and phone service that's more complicated than cable companies are equipped to handle.
First out of the chute: Cablevision. It has a $60-a-month introductory offer for a voice and Internet system that's faster than digital subscriber lines or T-1 lines. The offer includes unlimited local and long-distance calling, five e-mail accounts, antivirus software and extra customer service. Cablevision promises potential customers a smooth transition; they can keep their existing phone numbers.
Time Warner will roll out a comparable program nationwide in a few months. It's currently being tested in upstate New York.
Another big cable outfit joining the fray is Comcast, which says that small-business customers will be the company's top priority during the next two years.
Phone companies are scrambling to head off the challenge, moving quickly to lower their prices, especially in areas where cable firms are most heavily invested. For example, Verizon is now offering unlimited calling along with super-high-speed Internet service for $76 a month on top of the cost of the local phone line. Without Internet, the fee is $37.
AT&T has virtually the same package for $85 a month, phone line included. For a slightly higher cost, AT&T will throw in faster fiber-optic connections. Want voice only? The cost is $49 a month.
Pricing will vary from state to state because of state regulations covering telephone prices. But on average, customers may save 20% to 25% on their telecom bills.
The best bet for small-business owners: Wait until you've seen all the bargains before locking in long-term rates.
In coming months, companies will include cell phone service in such packages. Comcast, Cox and Time Warner will add Sprint service to their small-business offerings. AT&T is countering by offering business phone/Internet customers a 20% discount on AT&T (formerly Cingular) cell phone service.
Who'll win the cable vs. phone battle? The phone companies, most likely, because of the familiarity factor. Business owners are more apt to stick companies they know and have dealt with.
But small businesses will be the real winners. They'll wind up saving money over what they would be paying in the future as a result of the more competitive environment.
For weekly updates on topics to improve your business decisionmaking, click here.
E-Mail Article
Print Article
Reprint Article
|
|
|
|
|
|
|
|
