US/ND-1: Re: Schools reselling????

Re: Schools reselling????

Marty Tennant (marty@sccoast.net)
Sat, 31 Aug 1996 19:24:14 -0700 

Darlene H. Hartman-Hallam wrote:
> 
> Quoted material (from Marty Tennant):
> .....................
> For this reason, and until I see the discount levels involved, I am
> thinking
> that school districts may well want to consider the option of declaring
> themselves to be a reseller of telecommunications services under the new
> law.  This provides discounts off retail along with freedom and
> flexibility.
> It will not initially make your local telco happy
> ......................
> 
> This is a very EXPENSIVE VENTURE for schools...with budget cuts, salary
> freezes, riffing...plus the expense of licenses, equipment, maintenance,
> attrition..........
> In my opinion, schools are non-profit social institutions that have one
> major purpose....providing educational development and practice along
> with opportunity that when utilized by students, uncovers personal drive
> and purpose in the world so they are contributors to society.  While
> schools certainly have enough to do...partnering with community groups
> rather than becoming resellers is an avenue worth investigating.
> Therein musters a bridge between schools and community, yet does not
> dampen local telco or private initiative.  Someone has to invest,
> usually it is more doable when the burden is shared.
> 

Darlene,

1.  Not as expensive as you would think.  And potentially very lucrative.
    The resale of long distance is really easy to do.  No billing, no
    inventory.  And a long term source of funding for technology, or
    whatever you wish.

    Why do you think the local telcos have agreed to resale to 
    begin with?  Because they want to sell long distance.  Why?
    Because it incredibly profitable.

    I would recommend you speak to a well established long distance 
    reseller.  Just like my Mother's Alumni Assoc., I bet they would
    love to have you sign up the families in your school to use their
    service.  This is doable now.

2.   Resale of local service is an emerging area, recently put in limbo
     by legal moves of the Bells and GTE.  I anticipate that it too will
     be as easy to do as long distance resale, once this recent Telco
     flare-up against the FCC rules subsides.  

3.   Partnering with other groups or existing businesses could be a 
     great way to accomplish the same thing.  The bottom line is this.
     Why not make your schools a little richer every time you pick up
     the phone?  Better your school than some faceless corporation.

4.   To my knowledge, there is no provision in the new law that would 
     make it illegal for a school to partner with a reseller
     organization, while at the same time obtaining benefits from the
     universal service discounts.

5.   Far from dampening private initiative, involving schools in the 
     basic telecommunications infrastructure that resale offers would 
     bring telcos and small business closer together with schools.  
     It would also help raise awareness of the importance of current
     and future communications technology in the minds of parents.  
     I think it has the potential to help schools enormously.

6.   For the exact reasons you mentioned - budget cuts, salary
     freezes, riffing - schools need to look for long term funding
     for technology initiatives.  Resale of long distance now,
     and resale of local service later, could be an appropriate 
     route for some schools.  Sure beats selling candy bars
     and wreaths at Christmas.

Marty Tennant