With limited options, you may have struggled with finding the ideal telecom service provider for your multifamily property in the past. As more vendors and services enter the market, there are more possibilities for your building than ever, but you need the knowledge to successfully navigate your options. In this post, we’ll explore some of the factors that are critical to the long-term success of your next telecommunication service partnership.
The first factor to consider when it comes to establishing an agreement with a telecom provider is what they allow you to do and what they prevent. Here are the four general types of telecom service agreements.
When you enter into an exclusive telecom agreement, management deals with a single vendor for all of the telecom services provided at the property. An exclusive agreement prevents other vendors from offering services at your building. While this simplifies telecom management, it’s typically rare as it limits competition and options for residents.
A non-exclusive agreement is essentially the opposite of an exclusive contract it allows multiple vendors to offer services at your building, and you can market all of them to your residents. Non-exclusive agreements are popular as they encourage competitive pricing along with more diverse options for your residents.
A bulk agreement involves your organization purchasing telecom services in quantity at per-unit rates. By buying in bulk, you can pass cost savings onto your residents. These contracts only give residents one option for telecom, but they offer the most cost-effective agreement. Bulk deals are common at student or senior properties where budgeting trumps choice.
With an access agreement, you do not market telecom services or work directly with any telecom providers. You merely provide them access to your facility and allow them to sell their services as they deem fit. However, an access agreement does not allow your organization to enjoy any of the revenue generated from telecom services at your building.
In order for a telecom provider to deliver services to residents, they need the requisite infrastructure to do so. As the industry continually evolves, telecom service providers frequently have fluctuating infrastructure requirements depending on the market and geographic location. While newer buildings often have the infrastructure required to support the latest telecom services, older buildings may require significant upgrades or retrofits.
Fiber to the Unit
If you’re interested in delivering the latest in high-speed connectivity to your residents, fiber-to-the-unit (FTTU) agreements offer one of the most cost-effective options for doing so. Your telecom partner installs fiber infrastructure at your building at no cost to you, thereby minimizing the capital expenditure required to upgrade to the latest communications services. While your provider owns the fiber network initially, you have the option to eventually buy them out or renegotiate contractual terms over time.
If you’re looking for a longer-term fiber optic solution than FTTU, it’s worth considering investing in an infrastructure upgrade. Fortunately, the cost of fiber infrastructure upgrades has leveled out in recent years as the technology becomes more prevalent and older technologies are phased out. If you’re considering investing in fiber, now’s the time as prices remain stable with proven technology that’s here to stay.
Wireless and Cellular
If your building has common areas, you should consider offering public WiFi for the convenience of residents and visitors. You can work with telecom providers to find the most cost-effective solution for your facility. Another feature that’s becoming increasingly popular at multifamily developments is a localized cellular network that boosts mobile connectivity for your residents. While the initial investment is substantial, a dedicated cellular network can maximize resident satisfaction while attracting a new echelon of future residents.
Your Fiber-Focused Telecom Partner
At QXC, our team specializes in fiber-optic solutions designed to prepare your organization for the challenges of tomorrow. Whether you’re interested in FTTU or our telecom agreement opportunities, contact our team today to discover what fiber can do for you.