Reliable internet connectivity for residential communities is an everyday essential. But choosing the right provider and structuring the best deal on behalf of your HOA/COA isn’t as simple as it sounds. To select the correct network provider and manage the process for bulk Internet/WiFi, TV and phone services for the residents of your MDU (multi-dwelling unit) community, planning makes perfect.
Start by understanding the basics.
A Bulk Services Agreement (BSA) is an agreement/contract between a condominium or homeowners’ association and a company for providing services to the community’s entire membership. BSAs are commonly used for telecom services, such as internet, phone, and TV or cable. Because members (residents) band together as part of a BSA, they receive the services at a significant discount. The bulk services cost is included in the association’s yearly budget and is paid for by each unit owner through the regular assessment payments.
Why a BSA? The significant advantage of a BSA for your community is cost savings.
Communications services purchased in bulk often come at a lower per-unit price based on economies of scale. In general, bulk fiber/cable and internet services cost about 50% less than what a single-family homeowner would pay for the same services in an individual service contract. Both MDU community residents and property management (offices, amenities, common space, etc.) reap these attractive cost benefits.
Establishing a BSA contract on your terms.
Start by recognizing that a BSA is a legal contract. So, it’s essential to understand the specifics about service terms and conditions, installation timeframes, and more. Here are a few things to keep in mind as you plan and execute your community agreement:
Know your current contract.
- Learn your community’s current contract expiration date
- Learn your notice date—the date you need to respond to your current provider about contract renewal. If you miss the deadline, many providers tack on an extra two years to your existing contract.
- Learn specifics about your current contract services: Does your contract cover bulk services for residents? Common areas? Property management offices?
Know your network options.
- Learn about the technology. Will you choose cable or fiber for your network infrastructure? Where cable uses copper wire to transmit data, fiber-optics uses light, which facilitates faster internet connections capable of handling greater bandwidth.
Understand the installation options. There are two types of fiber installations: Active Optical Network (AON) and Passive Optical Network (PON). In a PON structure, fiber strands are run from the main Demarc, and then splitters are used to share that strand with multiple neighbors/units connected to the splitter.
The best practice for fiber-optic deployment is AON architecture; it runs a dedicated fiber strand to every home or condo directly from the Demarc—there are no splitters. This AON fiber-to-the-home (FTTH) design is futureproof networking, delivering full, uninterrupted signal strength, better speed and performance, and greater data security.
Navigate the solicitation process.
- Identify your scope of services: Fiber-To-The-Home( FTTH) infrastructure, Internet/WiFi, TV, phone, common areas, and/or property management offices.
- Identify providers. Do your research: Do you want fiber or cable? Do providers offer direct FTTH infrastructure or use existing conduit?
- Manage site walks with providers
- Proposal preparation (by your selected network providers—usually three)
- Proposal presentations to your HOA
Manage the selection process.
- Identify selection criteria for your community provider
- Technical review of proposals
- Price review of proposals
- HOA Board of Directors decision
- Vendor notification
Contract negotiation.
- Request Bulk Service Agreement (BSA)
- HOA Board of Directors review
- Attorney review
- Attorney contract redlining, negotiation + approval
- BSA execution
Understand your BSA contract:
Pay close attention to the term of contract vs. time for the provider to recoup infrastructure costs (installation of the fiber or cable system). At QXC, we structure our contracts to create a very stable, predictable model of pricing and service throughout the term of the agreement for your property, along with a guaranteed buy out of the contract at the end of a term for a nominal fee, which saves your HOA money long term.
Identify levels of service.
Be sure that all contract bids include the same service levels for apples-to-apples comparison: How many MBPS internet download and upload? Exclusive community TV channel included?
Because BSAs are legal contracts, engage an attorney whose expertise includes contract law and technology.
The BSA contract review and negotiation process can take weeks—and in some cases, months—to manage. With proper planning, your community’s bulk telecom contract selection process and installation can run smoothly, giving your residents and property management the best in service, user experience, and price. For more tips, get our FREE network transition guide: Contact Us.
Reach out to QXC if you have questions about fiber-optic network services for your community. We’re here when you need us.