Commentary on Small Business 'Telephony Bundling' Scam

M5 Networks Australia Comments on Small Business 'Telephony Bundling' Scam

Melbourne, 1^st November, 2010 - Small businesses have been the unfortunate victims of telephony bundling schemes practiced by a small number of telecommunications companies and resellers. These companies price telephony services together with the equipment that allows them to provide these services; they also offer ‘freebies’ such as plasma televisions or laptops as signing incentives. Matthew Wilson, Managing Director of M5 Networks Australia, a hosted VoIP services provider to SMEs, offers industry insight on the issue.

“M5’s customer base is largely made up of small and medium businesses, and we do come across customers who have been approached by some of these types of companies. They have been offered what looks like a good deal by companies that hide the real costs in a contract with a lot of fine print.”

“Business telecommunications is a competitive market, with many established players now being challenged by newer technologies and delivery models. For some, their response to these challenges, instead of embracing these new paths, is to try and extract fees through obfuscation.”

“These companies are also smart enough to target unsophisticated purchasers. Telephony can be quite complicated, and to someone who doesn’t know much about the associated costs, what they offer can look like the cheapest way forward. Unfortunately, more often than not that is not the case.”

“This is not the first time we have seen these practices in the industry, and given its competitive nature, I expect it will not be the last, unfortunately.”

“My advice is there is no such thing as a ‘free’ plasma television. Look for a trusted provider or reseller, and make sure references are investigated.”

“The industry and carriers need to stand up against these unfair practices and take more responsibility. There needs to be less obfuscation of pricing structures and use of incentives like consumer electronics that makes it hard for small businesses to compare products. Small businesses also need more protection, and hopefully cases like this at the very least help to expose how vulnerable our small businesses are.”

About M5 Networks Australia

Established in 2003, M5 Networks Australia has provided managed VoIP phone systems to customers as a disaster-proof service. Experts in VoIP, M5 delivers advanced phone system functionality and features that drive consistent voice experience across geographic barriers as businesses become increasingly dispersed and flexibly structured. With M5’s expertise, customers are able to future-proof their businesses by integrating their phone systems with core business and enterprise applications.’

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