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We are an I.T. business. We provide network equipment for

We are an I.T. business...
We are an I.T. business. We provide network equipment for wired and wireless internet to customers for a monthly fee. We don't sell it. It is like a lease. Obviously, we connect it to the Internet connection for customers' employees or guests to get on the internet and do what they do. Over the years, we have started including the internet connection with our service as we know more about it, we can manage the whole thing and build the cost of the internet within our lease price. It is a win/win for everyone, we look good when we offer a turn key solution, customer is happy as they don't have to mess with it, Internet service providers are happy as we give them a lot of business. Well last part is not true for Comcast. Our rep told us that we can not do this, the service has to go in Venue Owner's name as they say that Comcast does not allow their customers to resell their services. I argued that it is powering our equipment, not the venue owners but they won't let us put it under our name. It is a huge set back as it does not create that win/win situation and even thought that's how customer demands, we have to say no to them. Is is legal for comcast to say that? Are we technically reselling? Is there a competative local exchange carrier law that they have to allow competative carriers to survive by selling us at lower rate. Telecom act of 1996.
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Answered in 21 minutes by:
4/5/2012
WiseOwl58
WiseOwl58, Attorney
Category: Business Law
Satisfied Customers: 4,073
Experience: Senior Associate at White & Case LLP
Verified
I'm not surprised to hear this about Comcast, as they are extremely difficult to deal with all around. There may be an alternative internet provider you can use, such as the ATT or Verizon vios if it is available in your area.

If it is not available in your area, you should investigate one more time to see if a different department of Comcast will take you on as a reseller, which is what you are. If you cannot do this, then my recommendation is that you make a workaround and continue to offer a turn key solution to your customers, but the difference is that you would just make the arrangements to have the service installed in the customers name. Then, the customer could either recieve a separate bill for the service, or you could arrange to have it billed through your company's credit card, even though the service is in the customer's name, you would pay for it, and then rebill the customer for the cost of the comcast service, along with the other charges you are billing the customer for each month.

In this fashion, it would still be a seamless workaround for the customer and you would provide all in one service still, notwithstanding the difficulty of dealing with Comcast.

Good luck to you. Please press the green ACCEPT button. Thanks.
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Customer reply replied 5 years ago
What about the telecom act
It wouldn't apply to a reseller agreement with Comcast.
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Customer reply replied 5 years ago
How would it apply
You should try to negotiate a resellers agreement with Comcast. That is what you really need to go forward with your structure. It is not scalable for you to try to offer your own internet provider service competitive with Comcast.
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Customer reply replied 5 years ago
Im sorry, I wasn't clear. I meant if we were a clec or something, wouldn't they have to share the access in to buildings, like AT&T has to?
What do you mean if you were a clec or something? What else would you be, a clec or what else are you referring to?
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Customer reply replied 5 years ago

i don't know what that something would be but hoping there is some term/word for a company who sells internet as a competetive internet provider. Don't know if there is something like that or not. In phone service, AT&T has to sell its services to Clec , to resell.

 

Isnt there any provision for ISP's also to allow smaller companies to complete?

 

Thanks for all your help, you have been very kind.

Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,703
Experience: 30 years of corporate, litigation and international law
Verified

Hello I will try to help you. What you are referring to in terms of a CLEC is something that was imposed on the Bell Operating Companies when Ma Bell was broken up and later pay phones were deregulated. Comcast is not covered by that law. As the prior expert indicated your only option is to negotiate a reseller agreement because you are reselling Comcast's service. Even if you could establish that you were the end user, Comcast would still have the right to refuse to deal with you. For this reason the information the prior expert gave you is correct.

 

If this answer is responsive to your question, please accept it. That is how we are compensated. It would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,703
Experience: 30 years of corporate, litigation and international law
Verified
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Category: Business Law
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