Second, determine whether the wholesaler's authentication is in line with your customer's expectations. RADIUS requests are sometimes lost in the processes of dialing-in, so you want to know what the wholesaler's success or fail rates are.

Finally, find out what the wholesaler's overall downtime was for the past year, PoP-by-PoP. The metrics will illustrate backbone redundancy and help you determine whether the wholesaler's network is, or isn't working.

Third, how much will this cost you?
Price is the easiest qualifier to understand when it comes to selecting a wholesale provider. Just make sure that you break the pricing plans down to a common denominator, like hourly pricing, cost per subscriber, etc. Also make sure there are no hidden charges.

For example, some wholesalers offer flat rate pricing, but limit total hourly usage per customer. This model makes it hard for you to manage your ISPs access and budget. Make sure you opt for a healthy network that is priced right for your Internet service.

Fourth, infrastructure
Wholesaler providers in today's market fall into two categories — those that own and operate their infrastructure and those that resell someone else's infrastructure.

A reseller-wholesaler is a viable option for your ISP, assuming that you fully understand which underlying infrastructure will be used to service your customers. Resellers can create a value-added extension of your ISP's reach by delivering a chain of several "glued" infrastructures together in a seamless virtual network. You may get more comprehensive coverage for your Internet business from a reseller-wholesaler. Unfortunately, you might have to pay a higher price for the extended networks delivery chain. Direct wholesale providers use distinctly unique infrastructure designs that have their own inherent advantages and disadvantages. Keep in mind that the wholesaler is in business because they are infrastructure people, so infrastructure must be their strategic strength. A lot of ISP owners are quick to instruct direct wholesalers as to how their infrastructure should be built. What really matters is not how a wholesaler built their infrastructure, but what level of QoS and reliability the wholesaler's infrastructure can deliver to your customers.

Finally, get a financial report card
I saved the fifth element for last, because in the current market it seems to be one of the most important factors that could determine which wholesale provider your select.

In 1999 there were nearly 10 direct wholesale providers and at least 20 wholesale-resellers. In less than a year, market forces have cut the commercial supply-side of Internet access in half.

The current capital markets have nearly cut off additional funding for the telecom and dot-com sectors. Wholesale providers are now being asked to prove that their business model is successful and show profit before additional outside capital can be acquired. Although profit expectations should have been there from the start, it's a relatively novel idea for many dot-com enterprises.

Do you have a strategy in place if one of your suppliers fold their operation? It is a business reality of today's market — you need to plan for the potential obsolescence of your supplier's network.

It's probably safe to say that your ISP's business plan assumes a long-term outlook — your plan is to achieve success and profit after several years of fast-paced growth. Your wholesaler should have the same goals and the financial track record to prove it. Don't let the fact that some wholesalers are publicly held lull you into feeling secure with their future. Get the facts before you sign on the bottom line of a longer-term contract for services.

That last thing I want you to keep in mind while selecting your ISP's wholesale access provider is this — don't be held hostage by one provider.

Today's market demands wiggle-room and flexible services in order to survive. If you do your research, select competitive wholesale sources, and keep them on their toes, you won't have to toss your hands in the air and allow outside forces to control the destiny of your Internet operation.

Go to page 1: How to Select a Wholesale Access Provider

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