National full-service master agency Telecom Brokers (www.telecombrokers.com) has acquired the customer base and other assets of Southern California-based Global Communications 2000 (www.globalcommunications2000.com).
As part of the acquisition, Globalcomm 2000 has become an independent agent under Telecom Brokers, with access to an extensive portfolio of marketing resources that can be used to further build its business. The deal gives Telecom Brokers added regional scale via Globalcomm 2000’s subagent channel and its range of carrier contracts, which it has brought under its umbrella.
According to Dom Antonini, president of Telecom Brokers, the asset transaction forms a new strategic model for the company —and a path to greater business viability for smaller master agents and sales groups.
“We are kicking off a growth initiative around this, and are actively looking for other master agencies that are interested in rolling their business and accumulated subagents under Telecom Brokers in exchange for funding that they can use to advance their long-term goals. We are also looking to acquire subagents from sales organizations who want to focus on direct sales vs. managing a down channel,” Antonini noted.
The deal with San Clemente, Calif.-based Globalcomm 2000 has created the template for the strategy. The firm, which is privately held and operated, has 20 years in telecom and has established well-developed relationships with both carriers and a range of vertical market companies. It also has built a master-agent business, accumulating a sizeable down-channel of performing subagents. However, carrier quotas have become more difficult to meet, and Globalcomm 2000 found that this often dominated its business decisions.
The acquisition gives Globalcomm 2000 an opportunity to re-focus its efforts on serving its direct customers more fully, as well as kick-starting additional business development.
“For us, it made wonderful business sense,” said Judy Magana, President and CEO at Globalcomm 2000. “As pricing comes down for products and services, it made it harder to meet our financial commitments with suppliers. Rolling under Telecom Brokers has given us much more power over our business, and we’re even gaining a larger percentage of commissions, because they have a larger base and better terms with providers than we could gain on our own.”
She added that the sale money also enabled Globalcomm 2000 to contract Oncore Marketing (www.oncoremarketing.com) for a much-needed Website redesign—which has in turn attracted new business.
“We no longer have to worry about losing contracts for not meeting minimum quotas, and we don’t have to worry about commissions,” Magana added. “We can focus our attention on building our brand. It’s a different channel environment than it was 10 or 15 years ago when we started our master agent push, and our deal with Telecom Brokers has allowed us to reposition for long-term viability and a fresh era of growth.”
Antonini added that given the increasingly fragmented, cloud-driven communications provider landscape, it’s important for channel businesses to build credibility with end users as an objective business partner and consultant. Accordingly, Telecom Brokers helps agents with their business plans by giving them access to advanced customer-facing tools and marketing resources, and the support of a brand that is nationally known to both businesses and sales partners.
“Agents who join our channel can advance their own brands by making use of our backing and marketing services, including email campaigns, brochures that can be white-labeled and other resources,” he explained. “Between that and the cash from the asset sale, this model offers businesses an opportunity for a fresh new start.”
He added that agencies that have less than $3 million per month in recurring revenue are ideally positioned to take advantage of the opportunity, especially if they hold a range of direct provider contracts from companies like Telepacific, Windstream, Airespring, Earthlink, Granite, Masergy, Nitel and others.