Seems like somebody has a bit of a dilemma here. I think this is where the smartass in the center cube gets to yell out "That's going to leave a mark!"

At the onset, Mr. Client chose to go with the least cost provider McLeod USA instead of SBC, and to also commit to a long term contract to further reduce projected costs. Now some point down the timeline, Mr. Client is being advised to leave McLeod USA based on financial reports and rumor of imminent carrier failure and service loss.

Cost remains an issue for Mr. Client. What should he do?

Since McLeod USA has not violated the terms of the contract they are under no legal obligation to release Mr. Client from the remaining term of the contract. Doing so adds to McLeod USA financial woes, and so it is unlikely that they will do so out of any altruistic motives.

Any solution will include the continuing cost of the McLeod USA service contract until such time, if any, that McLeod USA fails to deliver service or ceases to exist in any fashion. A sale of McLeod USA assets to another entity will most likely include all existing contracts, so the real release point is when service is no longer provided or the original contract term is fulfilled.

An alternate carrier solution is or is not in place. If it is, Mr. Client has no immediate concern provided the network design was properly done. A failure of McLeod USA to deliver service remains a circuit outage scenario regardless of cause. General recommendation in either case - continue or begin to look at cost effective alternative providers to McLeod USA. If an alternate provider is selected, begin negotiating a contract to take effect on the day the current McLeod USA contract expires. Request the new provider to respond to an early cut with 30 days notification.

What if a Fujita 5 tornado were to take out the POP and a quarter mile on either side? I have seen areas cleared to bare dirt by these in Texas, and the upper Midwest faces the same risks. What will Mr. Client do if his provider is literally wiped out in an instant?

Satellite connectivity can provide the necessary bandwidth for data that is not latency dependant. It can typically be installed in less than one week. Wireless connectivity can often be installed in under 30 days and does not have the latency issues. It can also serve for voice communications. Cellular telephones can be used in place of POTS with all the feature required. These are just some of the alternative approaches to consider for business continuity planning.

Of course, McLeod USA may not fail and an F5 tornado is still rare. However, if Mr. Client has been having sleepless nights worrying about it, he should keep that worry in mind when selecting future services. I see a strong case for considering SBC as the next provider since it has a much lower likelihood of going under financially. WorldCom serves as a reminder that size is no guarantee of success though. An alternative connectivity source would be wise if communications plays that large a role in the business.

"Whatever you do, you'll regret it."

Robert McLeod Gray

As a side issue for Mr. Client, it is also time to revue his choice in IT director or consultants. After all, somebody likely advised him into his current dilemma. If that advice came from vendor representation (i.e. his McLeod USA account rep) there is a lesson to be learned here as well. Be very cautious of any advice coming from someone with a vested interest in a particular solution.

Anyone in the McLeod USA coverage area wanting a referral to an independent telecommunications consultant near to their location, or a quote for my time and travel if they would like my expertise applied directly to their specific needs, is welcome to PM me.

Private Reply to Ken Hilving (new win)