Internet Service Providers (ISPs)

The next step in choosing an ISP is eliminating those providers that 1) cost too much, 2) do not offer the services you need, or 3) cannot provide the right type of connection. One important factor for small businesses to consider is the availability of technical support. According to William Kilmer in Getting Your Business Wired, ISPs vary widely in the level of support they offer to customers. Online services make it easy to set up an Internet account, for example, but may not be able to provide the personal assistance a small business owner needs. It may be helpful to check the hours that customer support is offered by telephone, and also to inquire about the average time it takes the ISP to respond to requests for assistance.

A Web site for the company is something that many firms hope to establish while they get themselves connected to the Internet. Most ISPs are able to provide assistance to users in setting up a web site, and many ISPs provide space on their servers to host client Web sites. But Kilmer noted that small businesses may need to work with national providers or local providers that specialize in business services in order to establish a professional site with its own domain name. Otherwise, the business may be limited as to the size or usage of its site. Ideally, an ISP should be able to register a domain name, offer web designers to help create the site, and provide statistics on the number of people who access the site.

Another important factor to consider in choosing an ISP is the provider's tier rating. ISPs are rated according to their proximity to the backbone of the Internet, known as their point of presence (POP). Tier 1 providers—usually big companies like AT&T and Sprint—are linked directly to the Internet. Tier 2 providers lease their connections from Tier 1 companies, and so on down the line. The lower an ISP's tier rating, the further its connections lie from the Internet and the slower its access is likely to be. Kilmer recommends that small businesses work with ISPs rated Tier 3 or better.

Other technical considerations in choosing an ISP include the speed and redundancy of its connections. Ideally, an ISP should maintain several different connections to balance traffic and make sure that one is always available in case another fails. Finally, small business owners may wish to seek out an ISP that offers special packages for small businesses. For example, some providers offer several dial-up accounts or mailboxes for a reduced price. Others may offer special deals on registering a domain name and hosting a company web site.

ASPECTS OF THE INTERNET SERVICE AGREEMENT

When you have evaluated your business's needs as well as the various services available, it is time to sign a contract with an ISP. Kilmer emphasizes that small business owners should negotiate the terms of the contract rather than accepting a stock agreement. He also mentions a number of potential pitfalls avoid when making the final arrangements for Internet access through an ISP.

First, small business owners should look out for hidden charges. Sometimes the rate quoted by an ISP is a low monthly fee, but the contract specifies additional charges for such services as installing lines, providing training and technical support, or registering a domain name. Some ISPs even charge fees by volume of incoming or outgoing e-mail messages, or by the hour for access above a certain time limit. Second, Kilmer says to be sure that any contract specifies the length of time an ISP has to forward Internet traffic to and from your business. Otherwise, your small business may encounter delays ranging from minutes to days.

Third, you should make sure that your small busi-ness—rather than the ISP—owns the domain name of your web site. Registering a domain name online is a fairly simple and inexpensive process, and most ISPs will agree to host your site for a reasonable fee. If you decide to change ISPs in the future, owning the domain name allows you to take it with you to a new provider. Fourth, Kilmer warns small business owners never to allow an ISP to claim rights to any information or intellectual property from their companies. You may even wish to include language in the contract that prohibits the ISP from using your property (such as software stored on its server) or disclosing any information about your company.

Finally, once a small business signs up with an ISP and begins using the Internet, it is important to maintain a relationship with the provider. Most ISPs add new equipment on a regular basis, but they may not always notify customers of advances and updates. It may be a good policy to call technical support or your account representative several times per year in order to review your current settings and take advantage of potential performance improvements.

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