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Friday, January 9, 2009

Buying Secondary Market Telecom Equipment A Smart Choice for Service Providers

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Who would have thought years ago that a Service Provider could buy used 5ESS or DMS switch at a fraction of what it would cost new? Well this has now certainly become a common reality in the Telecom Industry, as the Secondary Market equipment vendors have become big players with Service Providers and EF&I contractors. With an ever changing technology, these lower prices on used equipment allow providers to expand and upgrade their current operations more often, and also allow in many cases for immediate shipment on equipment that may have a two-four week lead time. In some cases, the discounted prices on used telecom equipment can be as much as 80% off the cost of the new purchase price.

Some things for Service Providers and Contractors to look out for when purchasing secondary market equipment. Make sure your Vendor is an established company with a good solid record, and one that has been in business for at least 5-10 years. It is very important to make sure your Vendor warranties the used equipment. Warranty periods should be valid for at least six months on used equipment. Also make sure the Vendor does good inspections and refurbishes the used equipment on site prior to shipping it out. Confirm that your Vendor has a stock program in place, and is not just "brokering" for your equipment needs. Ask if same day shipping is possible, this should be the case on all stock items. Also ask if your Vendor is willing to dokitting programs for you. This can make things much easier on your inbound shipments for various installation sites. In many cases, engineering services are also available through secondary market vendors.

Another good thing to look for when deciding on a Secondary Market Vendor is to check their certifications. For example, you can find a Minority Woman Owned Business Vendor and thus have huge potential tax savings for your corporation. Also, many Secondary Market Vendors are qualified to sell to Government operations, thus making the transactions speedy for quick results.

So if you have not yet bought secondary market telecom equipment, give it a shot! I think you will be very pleased with the money you can save for your company.