AireSpring Inc. is expanding its national local footprint with the addition of 29 markets, bringing the total coverage to 125. The expansion is the result of the resellers new wholesale agreements with CLECs One Communications Inc. and McLeodUSA Inc.
The McLeodUSA and One Communications facilities will add second- and third-tier markets, which we didnt have before except a few through our contract with MCI, says Daniel Lonstein, COO for AireSpring.
AireSpring already has local service contracts with MCI Metro (now Verizon Business), XO Communications Inc., Broadwing Communications (now Level 3 Communications) and PAETEC Communications. PAETECs merger with US LEC, once finalized, also will boost AireSprings local coverage, Lonstein notes.
With the expanded footprint, we have what most businesses need, he says. A customer can get 95 percent of their locations through one provider versus 60 percent or less with a facilities-based provider.
AireSprings local service offer is designed with business customers in mind, says Lonstein. Its all T1s and PRIs, not POTS lines. Hot targets are multilocation businesses like hotel chains or large store chains that need more than just POTS lines.
Lonstein says in addition to footprint, AireSpring is able to offer customers unified processing and billing. This means there is a single point of contact for service requests and a single bill for all locations. Lonstein says AireSprings invoicing system is flexible and can generate statements for branch locations to pay or just one for headquarters. It also can send call detail only to branch locations for verification or cost allocation. Unifying the billing can be a huge administrative cost savings for many businesses, he adds.
Lonstein also says AireSpring offers better pricing on local service. We do a lot of volume and we buy well, he says. And we keep our margins at a reasonable level. AireSpring also offers dedicated long-distance rates on local circuits whereas most providers price it at the switched rate. A dedicated interstate rate might be 1.45 cents per minute, which is less than what a customer will get going direct to the local carrier, Lonstein explains. We are flexible, he adds. Where we need special pricing in certain locations on a large opportunity, we will do it in order to get the whole deal.
Better pricing, in turn, means better commissions, Lonstein says. While most local service providers offer 15 percent to 20 percent commissions to master agents, AireSprings are up to 35 percent. He adds, as an option, agents can choose an upfront payment equal to two times the MRC and a lower residual percentage for the contract term.
|AireSpring Inc. www.airespring.com
McLeodUSA Inc. www.mcleodusa.com
One Communications Inc. www.onecommunications.com
PAETEC Communications www.paetec.com