Global Capacity’s COO, Jack Lodge, recently talked shop with Capacity Magazine’s, Angela Partington. In the article, Pricing Principles, Partington and Lodge (among others) discuss pricing models that are placing huge pressure on margins in wholesale telecoms. The article explores how these pricing levels are set, and how the process is likely to develop in coming years.
The article suggests that as the markets become more open, there are administrative difficulties resulting directly from the sheer scale and volume of individual quotations and deals conducted between operators. This can be a significant burden on businesses if working practices are not amended. Automation is therefore playing a much more significant role in the pricing market. The need to develop highly functional carrier partnerships is where some carriers break down. Lodge believes that many are struggling within the current system. “Most organizations don’t have the resources to be able to deal with the vast number of suppliers out there. For simplicity’s sake, they negotiate with a small number of suppliers, which then negotiate with their suppliers. You create this multi-tiered delivery mechanism.”
Global Capacity is a firm believer in automation; the company’s One Marketplace Access Exchange provides an automated pricing tool to ease the process generating rates from global network operators. Lodge explains: “Without the automation, you’re in a manual process where people would spend weeks and months on the phone with spreadsheets trying to coordinate the underlying solutions. We automate both the supply and the price of the access, so that buyers can go directly to underlying suppliers, and get the most efficient market price.”
Automation allows telcos to handle very large volumes of information and to implement changes in pricing strategies very quickly and easily.
To learn more about Global Capacity, go here: http://www.globalcapacity.com/
To read the article, go here: http://www.capacitymagazine.com/Article/2919311/Pricing-principles.html
