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Your American based vendor is robbing you (again)

By September 25, 2015 Broadband

Your American based vendor is robbing you (again)

Don’t over-react. I love the United States. But if you have teenagers they can explain this better than I can. Right now, if you head down (fly, drive, run) to the United States to shop you will be quickly discover the currency differential. We call this the Prada factor.

This means that $ 1,000 CDN will give you the buying power of about $ 751.17 USD. Easy decisions don’t go.

Consider this point in conjunction with the graph above. In 2011 our currency was at parity with the CDN dollar.

Bandwidth agreements and Cloud Servers seem to be the big ones. We are working now with a customer example that in 2011 signed a Cloud Server Agreement with one of the dominant US vendors. Their regular $ 8,395 bill is now coming monthly at $ 11,178.11. But wait there is more, it auto-renewed in 2014 for three more years.

Most SIP and VoIP providers in Canada are billing in US dollars. It is important to pay attention to these things.

There is not much you can do to control currency fluctuation but there is a lot that you can do to carefully select your vendors.

Frontier Networks Inc. is headquartered in Toronto, Ontario and provides Broadband Internet or MPLS, Voice lines or Cloud PBX (a replacement to old phone systems), cloud servers and colocation to Canadian Retail and Multi Site customers who demand world-wide coverage from a ‘new’ network. “we like to do traditional things in a non-traditional way”.  Frontier has built a network that connects to other networks. Think of them like a large ‘backbone’ of interconnected networks. They connect to every phone company, cable company, wireless and hydro/utelco in Canada and the US through a series of well-connected Points of Presence (POPs). Simply put ‘we don’t suck’.

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