When it comes to telecom services, 98% of IT VARs either want them or already have them in their portfolio. What’s the allure? Why are nearly all IT VARs adding telecom services to their portfolios? Industry convergence is one reason, but good old-fashioned opportunity is another. Customers demand it. Carriers want it. Competition requires it, and IT VARs aren’t going to pass on the opportunity. The choice to add telecom services is easy; the trick—as this infographic illustrates—is deciding who to partner with and why.

1. Success in Selling Telecom Services Through Strategic Partnerships
IT VARs:
Industry convergence has propelled
VARs into the telecom services
space—and the trend is certain to
continue as more VARs peg telecom
services as an ideal addition to
their portfolio.
The new territory is rife with
opportunity and rich with history.
Recognizing not only the opportunity
but also the necessity of strategic
know-how, VARs are drawing on
industry leaders as partners.
Increasingly, those partners are
cablecos like TWCBC that have
spearheaded programs specifically to
benefit VAR partners who maintain
significant relationships with their
business customers.
Convergence:
The New Status Quo
“A tremendous upheaval in the
general IT and telecom landscape—
most notably convergence that is
being driven by cloud computing, new
routes to market, increasing customer
leverage and managed services—
is forcing all players to take a look at
where they fit…”
—IT VARs & Telecom
Service Sales: State of
the Channel Report
co-produced by Channel
Partners & CompTIA
A February 2014 survey asked about the estimated percentage of
telecom services revenue that results from sales efforts in the channel.
Here’s what the survey found:
Telecom
Services Sold
Through
the Channel
Telecom Services Revenue in The Channel
2%
9%
36%
40%
13%
said 75-100% of revenue is
through the channel
said less than 10% of revenue
is through the channel
said 10-24% of revenue is
through the channel
said 25-49% of revenue is
through the channel
said 50-75% of revenue is
through the channel
As the channel’s share of telecom services revenue grows, carriers are
aiming to diversify their partner base to include IT VARs and
Solution Providers. Why?
Telecom Carriers Court VARs
Telecom services are an optimal fit for the VAR portfolio as it
complements their existing product lines. VARs have identified these
services as a way to differentiate their business:
VARs Court Telecom Services
VARs offering telecom services were asked why they’re adding telecom
services to their portfolios. Reasons given were these:
VARs Stand to Benefit
IT VARs see value in partnerships—especially when addressing core areas
of concern about telecom services. Areas of concern are these:
Value in Strategic Partnerships
Who have VARs chosen to partner with to sell telecom services?
Identifying Partners
Cablecos are an untapped, optimal resource for VARs. Cablecos know the
industry and, thinking ahead, they have developed programs to meet the
specific needs of IT VARs.
TWCBC already offers a successful Partner Program for IT VARs that
enables Partners to offer competitively priced IP-based data and voice
communications solutions. Partners get the following benefits:
Choosing the Most Valuable Partners
Despite concerns...
Customers already
trust VARs.
VARs understand
customers’ current
technology
environments.
VARs are well-positioned
to sell network services,
computing and communications
technologies, and
cloud-based services.
100%
Agree
Less than half
of carrier
revenue flows
through the
indirect
sales channel.
But
most expect those revenue
numbers to increase.
expect channel revenue
to “increase somewhat”
expect channel revenue
to “increase significantly”
57%
23%
Video & audio
services for
conferencing &
collaboration
Broadband
Wi-FiIP/PBX
WAN services
About 1/3
of IT VARs offer
those five services
To increase
revenue/
profitability
Recruited by
specialist
to do it
Customer
demand
To remain
competitive
To win new
business
As an add-on
to cloud
solutions
IT distribution
partners
added
telecom
Add a new
line of
business
To offer
more voice
services
24%24% 8% 48% 28%
40% 15% 41%
45%
29%
Choosing
which pieces of
telecom to
sell or
recommend
Competition
from
traditional
agents
Customer
preference for
traditional
provider
98%
of IT VARs view
telecom services
positively 32%
66%
view telecom services as an
opportunistic component
of IT VARs view telecom services
as part of their core portfolios
50.8% 49.2% 56.9%
Telecom
carriers
Telecom
resellers or
aggregators
Cable
operators
33.9%
Telecom
agents or
master agents
20%
A/V
specialists
13.9%
None of
the above
Successfully selling voice and
data services
Marketing support for
selling services
Onboarding and training
Migrating to a residual-based
compensation model
Presenting effective customer
talking points
Order process training
Selling telecom services to
SMB and Mid Market clients
TWCBC is
partnering
with IT VARs to
achieve the
following
An infographic presented by
business.twc.com/partner
38%30% 30%
37% 9%
Lack of sales
experience
with telecom
Don’t
understand
business
model
Insufficient
staff
Lack of
telecom-
specific
technology
skills
40% 45%
Diversified
portfolio with
data, voice, and
Ethernet
solutions.
Opportunity
to white label
TWCBC services
to rebrand
as their own.
Ability to
set their own
margins to create
a recurring
revenue
opportunity.
Optimal
productivity
with online
self-service tools
that drive
efficiency and
fast results.
Increased
profitability via a
performance-based
compensation
program.
Access to
TWCBC’s wholly
owned fiber
network.
Sources:
http://www.channelpartnersonline.com/news/2013/05/twcbc-focused-on-key-wins-
through-ingram-micro-va.aspx
http://www.myalliances.com/community/seeking/639-time-warner-cable-business-
class-wholesale-program
https://www.timewarnercable.com/en/business-home/part-
ners/partners/channel-partner/overview.html
IT VARs & Telecom Sales: State of the Channel Report A Report Co-produced by Channel
Partners and CompTIA By Carolyn April and Khali Henderson