Free or Foe?

Free or Foe?

“How much is this going to cost me?” 

If telecommunications sales representatives had a dollar every time they heard that question from a lead, they would have enough money to never work again. However, it can be tricky to have a set price for solutions in the telecom industry because there is no one size fits all solution for all businesses.

A solution we have heard allows telecom resellers to ‘dodge’ costs when launching their business is free PBX softwares. Resellers believe they can avoid fees and start generating leads as soon as possible. Unfortunately, a ‘free’ PBX software can only last so long and may eventually cost you more. 

A previous blog post covered how non-paid PBX softwares are not entirely free. We discuss how once you invest in a solution, it is not easy to uproot it to another. Read how this PBX Tree Analogy is so Good, You WOOD Not Believe It and learn what we mean. (Now, are you picking up on the tree pun? 😏)

Before we get ahead of ourselves, what is a free PBX software?

FreePBX is an example of a free PBX software, “the world’s most popular open source IP PBX, gives users the tools to build a phone system tailored to their needs.” The software is free to download and equipped with all the basic elements needed to build an IP phone system. However, for additional features and functionality, users must pay. 

How is this possible? The power of non-paid PBX softwares comes from a global community of developers. They ensure the software remains highly compatible and customizable with all leading features. They say it’s scalable to build your business on a budget. But as companies begin to grow, they quickly outgrow the solution. 

Common Problems

As companies flourish, they quickly realize that they are held back by the lack of expandability of these platforms. If you are not an experienced developer, it is hard to take the open-source platform and add your own solutions. So, you are stuck waiting for the community of developers to do it for you.

Another problem we have heard users face is the support aspect. Although the solution is free, users can access support in three ways. 

  1. Post your question on a forum. The forum is typically very active; therefore, community members can receive responses quickly. Although, you will be troubleshooting the issue on your own.
  2. Visit a free PBX software wiki, where you can access full documentation, including installation, administration manuals, and troubleshooting techniques.
  3. Contact an external support provider and pay.

Last but not least is the purchase of upgraded licenses. A huge downside to non-paid PBX softwares, is that there are not many options for purchasing or upgrading licenses. For example, users can either choose to buy a 1-year or 25-year increment. There is a noticeable difference in price between the two! For many, that might not be an issue, but it could deter smaller or newer businesses.

These three common problems are extremely unfortunate because the beautiful part of selling telecommunication solutions is you do not need to be a developer! When you partner with an experienced provider, they do all the heavy lifting for you. Providers are equipped with teams of expert engineers ready to solve (and prevent) issues as they arise (before they occur). That way, you can focus on what you do best: selling. 

Why go the non-paid PBX software Route?

There are many reasons resellers choose to begin their telecommunications journey with a free PBX solution. 

  1. Avoid Monthly Fees
  2. Ownership of the Company 
  3. Easily Available
  4. It is Free 

Unfortunately, the word free stands for Freedom. The freedom of open source communication. There is no denying the four points mentioned above are attractive for a reseller entering the telecommunication industry. But did you know that many software manufacturers and cloud providers all offer freedom? Freedom to own your company, implement a perpetual pricing module, offer customizable solutions, and so much more? 

So, now what?

If you are asking for our advice, do it right first. Using a non-paid PBX software can only take you so far. When your customers start to demand more, you may find your back against the wall because you are not equipped to offer the latest features. To take your company to the next level and stay on par with the competition, you will need to re-root your customers to another platform with a new provider. 

The saying “You need to spend money to make money?” is prevalent in the telecommunications industry. The bargaining power of buyers is extremely high because there are so many vendors to choose from who offer similar features at different prices. 

Connect with our sales development team today, and get information on the best solution for your business. Partnering with Bicom Systems gives you access to exclusive content, materials, customizable solutions, and more! Ask us how you can build your brand’s way. 

Let’s Connect
📞 +1 (647) 313 1515
📧 sales@bicomsystems.com
💻 www.bicomsystems.com/contact-us    

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Solomon Islands choose Huawei for telecom towers

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Is Vodafone about to sell its Indian tower company stake?

There are still a few caveats, but it looks as though giant operator Vodafone is getting closer to selling its stake in India’s largest mobile tower installation company after Indian news reports suggested a Canadian pension fund is considering making an offer.

The pension fund, Caisse de depot et placement du Quebec (CDPQ), is said to be in talks with Vodafone to buy its residual 21% stake in Indus Towers.

The reports emphasise that the talks are still at an early stage, though they suggest that Vodafone’s stake in Indus is valued at around 11,270 crore (more than $US1.4 billion). 

This would be quite a commitment for CDPQ as it would constitute its biggest deal to date in India, though, as India’s Economic Times points out, CDPQ has already taken big bets on toll roads and power utilities, among other sectors, in the country.

Of course Vodafone has also had talks with other potential buyers, including long-term infrastructure investors and other sovereign wealth and pension funds, but with no results so far. If Vodafone does sell its remaining stake in Indus, it would end the company’s involvement in the passive telecom infrastructure business in India.

It’s also worth mentioning that, as the largest shareholder in Indus, with about 48%, operator Bharti Airtel has the right of first refusal if Vodafone does decide to sell its stake to an external investor. Not only that, but, according to a source quoted by the Economic Times, the sale may also rely on Vodafone Idea, in which Vodafone holds a stake estimated at just over 28%, clearing its payment arrears to the tower company.

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VMO2 boosting apprenticeship schemes

This week, Virgin Media O2 (VMO”) has announced that launch of five new apprenticeship schemes, set to focus on digital marketing, cyber security, quantity surveying, network cabling and DevOps.
 
These new schemes will run in addition to the 40 the company already offers in these crucial areas, with VMO2 also running alternative schemes for network engineering roles.
 
Apprentices will reportedly be paid a minimum annual salary of £19,000, with the company seeking to fill an additional 70 roles in total…

This week, Virgin Media O2 (VMO”) has announced that launch of five new apprenticeship schemes, set to focus on digital marketing, cyber security, quantity surveying, network cabling and DevOps.

These new schemes will run in addition to the 40 the company already offers in these crucial areas, with VMO2 also running alternative schemes for network engineering roles.

Apprentices will reportedly be paid a minimum annual salary of £19,000, with the company seeking to fill an additional 70 roles in total, adding to the 450 apprentices it has taken on since June 2021.

“We’re on a mission to upgrade the UK, and are recruiting talented people to make this happen,” said Karen Handley, Head of Future Careers at Virgin Media O2. “With thousands of people finishing school or college and receiving their A-Level results, there has never been a better time to join us as an apprentice where you can earn whilst you learn. Whether it’s cyber security or network engineering, digital marketing or planning, at Virgin Media O2 we’re constantly expanding our array of apprenticeship programmes to help our people develop the skills they need for the future.”

VMO2’s decision to announce this expansion at the same time as UK students receive their A-Level results is no coincidence. 

This year, despite top grades falling compared to 2021, UCAS figures show that around 425,000 students achieved the grades required to go to university, the second highest amount ever in the UK. 

However, in contrast to enduring popularity of going to university, recent studies have shown that teenagers are increasingly concerned about securing a career path earlier in life, potentially concurrently with their studies. An 800-person study conducted by VMO2 itself found that more than a quarter (27%) of teens aged 11 to 18-years-old felt that university was not the right choice unless it led directly towards a career. The cost-of-living crisis was also a major concern, with 31% of respondents in the study saying they felt the economic environment meant that university was not longer a good idea.

Parents, however, still view university as superior to apprenticeships and other work schemes, with 41% of parents saying they hoped their child would go to university, versus just 21% that would like to see them do an apprenticeship. 

VMO2 itself suggests that this study indicates that there are still negative misconceptions attached to the idea of apprenticeships – something they hope to change with their own schemes.

“Apprenticeships are still a confusing concept to many parents and potential apprentices – but they offer a great alternative to university,” said Handley. “There is a common misconception in the UK that apprenticeships are only for traditional trades such as plumbing or hairdressing – but in actual fact, there are many opportunities available in fields as broad as cyber security, marketing, and IT.”

With finding the next generation of telecoms professionals a constant thorn in the industry’s side, VMO2 will be hopeful that the expansion of their apprenticeship programmes will help alleviate some of their recruitment pressure in the years to come, particularly in increasingly crucial areas like software development and cybersecurity. 

Are UK operators doing enough to nurture the next generation of telecoms professionals? Join the experts in discussion at this year’s Connected Britain conference 

Towercos set to do battle for Oi’s Brazilian towers

Today, Brazilian media is reporting that both ATC and IHS Towers are lining up to bid for OI’s 8,000 mobile towers, situated throughout Brazil, according to anonymous sources close to the matter.
Oi has already received a binding offer of roughly $326 million in early August for the towers from NK 108 Empreendimentos e Participacoes (NK 108)…

Today, Brazilian media is reporting that both ATC and IHS Towers are lining up to bid for OI’s 8,000 mobile towers, situated throughout Brazil, according to anonymous sources close to the matter.

Oi has already received a binding offer of roughly $326 million in early August for the towers from NK 108 Empreendimentos e Participacoes (NK 108), an affiliate of Brazilian infrastructure developer Highline do Brasil II Infraestrutura de Telecomunicacoes (Highline). The deal would see around $210 million paid to Oi immediately, with the rest of the sum paid up until 2026, depending on the level of infrastructure usage.

Now, according to reports, any new proposals from other potential suitors are expected to be submitted by Monday afternoon, with the minimum bid at least matching that of Highline. 

All three of these tower companies have been growing at pace in recent years, with tower infrastructure becoming an ever more attractive long-term investment, particularly in today’s unstable global economy. 

Highline has increased its Brazilian tower portfolio significantly in recent years through a number of acquisitions, including buying 637 towers from Oi itself last year and over 3,000 via the acquisition of Phoenix Tower Brazil back in 2020. 

ATC, meanwhile, most notably acquired Telefonica’s tower unit, Telxius, last year, giving it access to an additional 30,722 mobile towers spread throughout Germany, Spain, Brazil, Chile, Peru, and Argentina.

Finally, IHS Tower’s most recent acquisitions have been on the African continent, most notably paying telecoms giant MTN $412 million for around 13,000 sites in South Africa. However, IHS has also expanded its Brazilian tower holdings already this year, with its acquisition of São Paulo Cinco Locação de Torres Ltda. (“SP5”) increasing their portfolio in the country to over 7,000 sites.

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Connecting Kilimanjaro: Africa’s tallest peak to gain internet access

This week, the Tanzanian government has announced that state-owned mobile operator Tanzania Telecommunications Corporation (TTC) has begun connecting Africa’s highest mountain to the internet. 
 
The government said that it had completed the installation of telecommunications equipment 3,720 metres up the mountainside, providing access to a high-speed broadband connection for the thousands of climbers that visit the mountain every year. 
 
By the end of the year…

This week, the Tanzanian government has announced that state-owned mobile operator Tanzania Telecommunications Corporation (TTC) has begun connecting Africa’s highest mountain to the internet. 

The government said that it had completed the installation of telecommunications equipment 3,720 metres up the mountainside, providing access to a high-speed broadband connection for the thousands of climbers that visit the mountain every year. 

By the end of the year, TTC says it will have deployed infrastructure covering Kilimanjaro’s summit, some 5,895 metres above sea level.

The specific technologies used to provide these services and the speeds that consumers can expect have not been revealed.

« Today Up on Mount Kilimanjaro: I am hoisting high-speed INTERNET COMMUNICATIONS (BROADBAND) on the ROOF OF AFRICA, » wrote Tanzania’s minister of information, communication and information technology, Nape Moses Nnauye in a tweet.

The government says that the infrastructure deployment will allow for greater safety while up on the mountain, giving climbers better access to emergency services, as well as navigation and weather information. 

While this is certainly a major advantage for prospective climbers, mountaineering organisations have warned climbers to be wary of an overreliance on fallible technology.

Beyond safety concerns, perhaps a bigger driver for this infrastructure deployment is the connectivity’s potential positive impact on tourism. 

In recent years, the Tanzanian government has been realigning its tourism strategy with regard to the continent’s most famous mountain, including last year announcing a controversial plan to build a cable car on mountain’s southern slope. Allowing tourists to post pictures and engage with social media while climbing the mountain itself, will surely be a boon for the country’s tourism board.

Another interested party that seems particularly excited about this announcement has been the Chinese government, which has been helping Tanzania to invest in connectivity infrastructure for many years. 

According to data from the Tanzania Investment Center (TIC), China is Tanzania’s largest source of foreign investment, funding projects transportation, manufacturing, mining, tourism, agriculture, fishing, agro-processing, and, indeed, telecommunications. Back in 2017, for example, China’s Exim Bank loaned the Tanzanian government $70 million for the rollout of the first phase of the nation’s fibre optic backbone project.

Tanzania is also a key location in the Chinese government’s Belt and Road Initiative.

It is worth noting that this is not the first time that China will have helped put connectivity equipment on a mountaintop. Back in 2020, Huawei and China Mobile announced that they had deployed 5G connectivity at the summit of Mount Everest, describing it is achieving ‘mission impossible’.
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