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Telecom Legend Richard Jalkut On How TPx Benefits From Big Telco Strategy And How Partners Can Stop Being 'Quoting Engines'

Telecom industry veteran and current CEO of TPx Communications Richard Jalkut discusses the confusion around incumbent carriers' growth strategies, the need for partners to move to managed services, and getting more VARs into the telecom services business.

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How is TPx faring with the incumbent carriers making high-profile acquisitions in the digital media and entertainment space?

We benefit in a couple of ways. We are losing less of our base to carriers like AT&T and Verizon from a churn perspective than we ever have been, so that tells me they don't have sales people that are really focused on the midmarket and sub-enterprise space which is where we play. These carriers are very good at bandwidth solutions for their customers and lighting up a building, but there is more choice now than there ever was. In every building, there is a carrier, a cable TV company, and an alternate carrier, like a Level 3 or XO [Communications], so with price compression occurring for all bandwidth products, why would we need to light up buildings? We can pick and choose who has the most effective pricing and best service. I really think these carriers are not as much interested in the spaces they were before, and I think they are more distracted corporately around what their growth strategy is, and I don't see them as aggressive from a pricing point of view as they have been before – all that is good for us.

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