Article - May 2000
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An Introduction For The Property Owner/Manager

by Kirby Russell

By recognizing that technology trends have created a new set of needs in the marketplace, real estate owners and managers can benefit from some very valuable new opportunities.

Kirby Russell works within Lucents High Speed Access division.  His current role has been in developing a turn-key solution for equipment and services delivered to the Multi-Tenant/Multi-Dwelling/Hotel markets direct through Lucent and through Lucents CLECs, ISPs, VARs, Systems and Network Integrator partners.  

High-Speed Data Services
A New Opportunity for Real Estate Owners and Managers 
For many of today’s hotel guests, apartment residents, and office tenants, high-speed data access is essential to both business and home life—like electricity, phone service, or cable T.V. 

Reliable Controls Taking Advantage of Today’s Most Powerful Trend
New forms of data communications, particularly the Internet, are changing the way the world does business, and that includes the real estate industry. Many of today’s most lucrative tenants and guests are now adding a critical new item to their requirements for renting office space, apartments, and hotel rooms—high-speed data access. This powerful trend presents real estate owners and managers with some exciting new opportunities, including a chance to develop a competitive edge in attracting customers—and the opportunity to bring in new revenues from a range of new services.

The Internet: Changing Public Expectations 
What makes the Internet truly significant for real estate owners and managers is its global scope and its integration into daily life. People worldwide are rapidly adopting the Internet as a key business resource and a personal communication tool, and it’s predicted that, in the year 2000, nearly 55 million Americans will be transporting business and personal data from their offices to their homes and on the road with them when they travel. With that kind of widespread use and familiarity, data access is rapidly being perceived as a public utility that should be available everywhere. At the same time, communications on the Worldwide Web have added more complex graphics, audio, and video, and this multimedia communication creates a constantly growing demand for higher transmission speeds and increased bandwidth. These changes have important consequences for the real estate industry. Because people are relying on data services in both their professional and personal lives, they want these services to be available wherever they spend their time. And they want the best possible speed and performance from these services. So the availability of high-speed connections and related services is becoming a priority in choosing hotel rooms, office space, and apartments—particularly for business travelers and professionals. Fortunately, these potential tenants and hotel guests have also demonstrated a willingness to pay for high-quality data services.

Offering High-Speed Data Services: The Benefits
By recognizing that technology trends have created a new set of needs in the marketplace, real estate owners and managers can benefit from some very valuable new opportunities.

contemporary REIT Opportunities 
Until recently, real estate investment trusts (REITs) could offer telecommunication services to tenants only on a limited basis. Since Internal Revenue Service rules specify that REITs must generate at least 75% of their income from rent or mortgage interest, REITs have been discouraged from aggressively pursuing additional fee-for-service offerings. However, a recent IRS ruling opens the door for REITs to sell a number of telecommunications services to clients. The ruling paves the way for REITs to choose the telecommunications companies that would serve their properties. For tenants, the decision means easier access to technology services, at lower cost. With this ruling, REITs may eventually be able to include telecommunications and other services in tenants’ total lease packages, and as additional service fees are included in monthly rent, REITs will be able to pay out higher dividends and report higher earnings. 

Summary of Opportunities
Powerful new trends in technology are changing the way the world does business and opening new doors for real estate owners and managers. High-speed data services are becoming the latest “public utility,” and the opportunity now exists to integrate these services into rental offerings in a way that benefits both tenants and real estate owners and managers. Leaders in the industry have the opportunity to establish a valuable competitive edge—and gain new revenues with a range of valuable service offerings. While those who ignore the trend run the risk of losing their best tenants and customers to locations that can meet the growing demand for data services. Of course every opportunity also presents a new set of challenges, complexities, and questions. And the data communication trend is no exception to this rule. However, there are ways to make the most of this opportunity, with a minimal investment of time, effort, and money. The key is to work with a comprehensive program that can ensure smooth start up, fully support successful operation, and provide easy ways to grow and change.

A Comprehensive Approach to Success
What do real estate owners and managers really need in order to succeed with these new services? The elements of success include: high-quality equipment at the best prices, technical support that makes installation easy and keeps tenants happy, financial support that allows fast start up and a quick return on investment, marketing support that brings in interested customers as soon as possible, and reliable partners who can provide guidance and support in working with an unfamiliar technology. The ProfitSuites program from Lucent provides each of these key elements in one comprehensive program. 

High-Quality Equipment at the Best Prices
To select the right communications equipment, real estate owners and managers must begin by looking for the best balance of price and performance, among today’s high-speed data options, which include DSL and ISDN technology, cable modems, and leased T1 lines. Pricing considerations include: the initial investment in equipment and wiring, as well as installation charges, monthly fees, and mileage or usage charges. Performance issues include: the speed and reliability of the service, the security it provides for data, and the billing and accounting options it supports.

The Advantages of DSL Technology
Through a careful evaluation of these cost and performance factors, the Lucent ProfitSuites program has chosen to offer real estate owners and managers a choice of five “get started” product and support bundles, based on DSL technology. DSL was chosen for its:

Low implementation cost. Because it can operate over existing telephone lines without requiring special line conditioning, DSL technology provides a major cost benefit.

Unparalleled flexibility. Unlike existing data service options, Lucent DSL solutions give property owners the ability to enter cost-sensitive markets with lower speed offerings, then quickly and easily upgrade users to higher speeds—up to 52 Mbps—as their needs grow. It also offers the ability to add new differentiated services, quickly and easily.

“Plug-and-play” simplicity. While a tenant’s computer must be properly configured to use high-speed data services, DSL product offerings provide fast, easy, automated ways to handle this configuration process. 

Customer demand. DSL deployments skyrocketed to 267 percent in 1999, and worldwide shipments of DSL lines are projected to increase from 350,000 to over 9.8 million by 2003. Profit potential. While DSL is a relatively inexpensive service to provide, customers have shown their willingness to pay a premium for its speed and dependability. 

contemporary Product Bundles that Meet Specific Start-Up Needs
The ProfitSuites program helps overcome the challenges of getting started in a new market with a new technology by providing all the state-of-the-art equipment real estate owners and managers need to get started with a minimum of time, effort, and risk. Each bundle is designed to meet specific start-up requirements and goals— and is backed by all the support needed for success. 

Lucent Technologies offers the most complete, reliable selection of advanced DSL equipment available on the market today. These bundles are just the top of the iceberg. Additional bundles are possible for ADSL, G.Lite and other technologies utilizing higher density platforms like the STINGER and including new capabilities offered in our new MAXDSL20 G.Lite capabilities, the new CellPipe 20A and the new CellPipe Integrated Access Device (IAD) and more! 

All our products are fully interoperable with the industries most respected xDSL vendors through our “Wired For DSL” partnerships. These partnerships provide additional features and flexibility with not only xDSL-specific capabilities, but integrated Voice Over DSL products and services all depending upon the services you plan to offer. 

The Importance of Reliable Technical Support
Property owners and managers who choose to enter an unfamiliar field like high-speed data services must be sure they can count on the full support of equipment vendors and telecommunications service providers. They need quick answers to questions about services, fast responses to problems, and advice they can count on. In other words, they need support that keeps tenants and guests satisfied with their new services. The Lucent ProfitSuites program provides this kind of 24-hour a day support as an integral part of every product bundle. It starts with the planning stages, keeps equipment installation and service implementation smooth, and continues through ongoing service management and expansion. Offering both on-line and remote personal assistance—around the clock and around the globe— Lucent Advantage On-Call keeps life simple for both property owners and their tenants. Property owners can also choose additional support services, right from the start or as their data service offerings grow and evolve.

Minimizing Risk and Speeding Profitability
No matter how promising a new opportunity may be, it’s always advisable to minimize the risks of start up. The Lucent ProfitSuites program supports this approach in a variety of ways. First it offers the best DSL equipment available in today’s marketplace—at the most economical prices. The prices are particular impressive when the program’s built-in support features are calculated into the equation. The program also allows property owners to keep their initial financial investment to a minimum by providing a choice of start-up product bundles that make it easy to begin small, then expand as customer demands increase. Lucent Financing will even help out with this initial investment by offering lines of credit, 100% financing, fixed payments, long terms, if needed, capital flexibility, tax advantages, and special plans for special needs. Not only do these options simplify start up, they’ve also been shown to speed profitability. 

Attracting High-Speed Data Customers
Even the best data services require a good marketing program in order to bring in new hotel guests, tenants, and additional revenue. That’s why the Lucent ProfitSuites program provides a unique level of end-to-end marketing support with every product bundle. This support is designed to reduce the time and effort involved in marketing, bring in data-service customers faster, and support the success of the service offerings. It includes a program guide that outlines how DSL-based data services can be marketed, along with promotional materials that simplify the process of reaching out to potential customers. These materials can be easily customized with the details of each property owner’s unique service offerings. 

Finding Reliable Partners
Providing high-speed data services involves partnerships between property owners, equipment manufacturers, telecommunications service providers, and sometimes resellers and systems integrators. The Lucent ProfitSuites program simplifies the process of creating a comprehensive solution—and helps build partnerships, where they didn’t exist before. 

For property owners and managers, the ProfitSuites Program enables the creation of revenue-generating, value-added services using the industry’s most capable and scalable high-speed data equipment. It offers the only comprehensive, “instant success” program in the industry, including the partnerships, financing, multiple support services, and marketing assistance programs to make these new services successful today—and well into the future. The advantages of the ProfitSuites Program include: 

A comprehensive approach
The program gives property owners and managers everything needed for success in an exciting new service area.

Integrated access technologies
The ProfitSuites program offers easy growth and expansion for data services, based on the broad range of integrated product and technology solutions that Lucent offers. 

High return on investment 
Analysis has proven the value of ProfitSuites solutions, which provide the added advantage of a quick return on investment. 

Simplified partnership
ProfitSuites simplifies the process of creating a comprehensive solution and bringing together the partners needed for success 100% financing The ProfitSuites financing options not only make it easy for property owners to get started with DSL services, they also speed profitability. 

Free installation and support
Lucent smoothes installation with around-the-clock support—and provides more sophisticated support services, as customers’ demands expand.

“Plug-and-play” simplicity
The end-user experience is simple and “seamless.” Configuration of their computers is handled easily and automatically, and so is billing for their services. 

DSL equipment installation relieves congestion on the PBX
As the number of tenants accessing the Internet increases, PBX systems become congested and phone lines can become tied up for hours. DSL can offload data calls, improve performance, and reduce the need for costly PBX upgrades.

For more information To find out more about how property owners and managers can offer high-speed data services try our web site 

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