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Furthermore, Legault asserts that while Vanco handles the network, Bell Canada remains the single point of contact for all customer needs and wants. There is no added cost for using NetDirect, and Vanco turns a profit through a process Timpany labels as “buying wholesale, adding our mark-up and selling it on.” The visibility of Vanco to Bell Canada customers is minimal, which is exactly what makes the VNO model desirable.
So how can a service provider without any owned assets exist, much less become profitable? The answer lies in the tendency towards inefficiency in traditional networks. Perhaps at least part of the reason is that
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worrying us at all at the international level,” says Legault. “The packet is being fairly across the board. Whether it’s my network or someone else’s, it’s a change in paradigm.”
As Vanco NetDirect Chief Exec Wayne Churchill told the Manilla Times (which, in a telling case of Vanco’s recent push was covering their AsiaPac launch), “There are only a very few carriers that have global reach but almost everyone has multinational customers. With Vanco NetDirect telecom providers can now offer their customers additional network capability on a global scale at a competitive price,” Churchill continued. “This is about helping carriers win more business and at
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VNOs, not possessing an infrastructure and all of the potential hubris that such a network might include, must work doubly hard to ensure that their customers are satisfied, their QoS is above and beyond, and that the experience to the end user is easy and pleasant as possible. There is no doubt that there is a market for making the lives of enterprise and other customers easier.
But does the VNO situation pose a similar dilemma to that faced by everyone deciding whether to rent or own a home? Is it better, in the long run, to swallow the cost of building for the sake of equity? “It is not
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better margins, and about meeting the needs of the largest enterprise customers in the world.”
And perhaps it is the case. Perhaps this is the wave of the future. With the capability to expand reach for carriers, simplification of telecom schemes for enterprises, a commitment to customer service, and a fresh perspective on the telecom world, VNOs may well be the wave of the future.
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