https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • MSP 501 Rankings
    • NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Channel Futures 20: Top Tech Providers
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
    • Channel Leaders Lists
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • MSP 501 Rankings
    • NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Channel Futures 20: Top Tech Providers
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
    • Channel Leaders Lists
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Regulation & Compliance


Shutterstock

Government Regulation

Runaway FCC Regulations: Abating the Ban on Agents

  • Written by Technology Channel Sales Professionals
  • March 30, 2022
Agent group seeks FCC change to allow rural health care customers to pay agents earned commissions.

History has countless examples of boom or bust as result of a regulatory change. It was the latter, rumbling down upon a largely unaware segment in our industry, that freight-trained many of us on July 1, 2020. On that day, multiple cable and telco providers ceased paying agents earned commissions for health care customers, and they did so to remain in compliance with new federal regulations.

Our federal government isn’t exactly known for moving like a speeding train, so how did regulatory change roll up on us so quickly? And more importantly, what’s next? Will future restrictions in some other business segments put you on the railroad tracks? If you have a pulse, work in the United States, and are involved in the agent industry, then you work under the auspices of the Federal Communications Commission (FCC). Read on.

How Regulatory Change Works

Most federal policy changes follow a process prescribed by the Administrative Procedures Act (APA), which includes requirements for federal agencies to publish draft new rules, seek public input on such rules, as well as taking such public comments into consideration before issuing an order adopting the final rules. Before the rules become effective, a federal agency has to also undertake a regulatory flexibility analysis on whether the proposed new rules would unduly burden small entities by imposing a significant economic impact. Finally, for the rules to become effective, they must be published in the Federal Register to ensure sufficient notice has been given to the public.

For the rules that led to a cessation of payment on July 1, 2020, the FCC observed all the steps required by the APA, including clear language describing the FCC’s perception that agents were harbingers of bad influence and danger to a fair and open competitive bidding process. Several telcos and their trade association filed comments requesting the language banning agents be removed. However, an unpersuaded FCC marched forward in adopting the rules, without the benefit of fully considering the significant economic impact the prohibition would have on a substantial number of small businesses that make up the community of technology channel sales professionals. These things all happened over the course of several years. But where was our voice? Where was agent nation?

The majority of us are direct sellers. Whether technical, pre-sales, post-sale, account executives, or administrators, we work directly with our customers. We are independent small businesses, and we enjoy getting out on the road to our customers. The majority of us worked in the industry for years at a cable or telco before moving into the independent agent realm. We relish an unfettered capacity to provide the best solutions, irrespective of a single brand’s product limitations. We provide best-in-class solutions and take pride in supporting our customers. Our expertise, our labor and access to multiple competitors provides a unique benefit to our customers.

Back in 2017, all of us were hard at work across the country when this story began. The FCC published a notice requesting comments on third-party consultants working with health care providers who participate in the Rural Health Care Program (“RHC Program” as overseen by the commission). The concern was based upon a single instance of a third-party consultant managing a request for proposal (RFP) for a health care customer and then taking a sales commission from the telco provider to whom it awarded the bid. If you’re shaking your head after reading this and mumbling that this kind of consulting is not what you do, you would not be alone. Unfortunately, opinions and rules were formed based on an overly broad definition of consultant and an uninformed sense of what our agent industry does. The consequence was sweeping.

What came next didn’t consider the …

  • Page 1
  • Page 2
  • Page 3
Tags: Agents Strategy Regulation & Compliance Vertical Markets

Most Recent


  • Making Waves
    7 Channel People Making Waves This Week at AWS, Cisco, Snyk, CrowdStrike, More
    Earlier this year, ServiceNow made a $25 million strategic investment in Snyk. This followed Snyk closing a $196.5 million funding round.
  • AppDirect-TBI, latest channel M&A
    Latest Channel M&A: ReliaQuest, IBM, Broadcom, Amplix, More
    Absolute Software, Procure IT and Qlik were among other companies wheeling and dealing in May.
  • CwCJ with Palo Alto Networks
    Coffee with Craig and James Episode 124: Palo Alto Networks
    Cybersecurity is on the agenda, as we talk threats, channel program and more.
  • CP Expo Best in Show 2023
    Images: Channel Partners Conference & Expo Best in Show Awards
    Vonage, T-Mobile, OpenText and 8x8 were among the winners. See who else took home honors.

One comment

  1. Avatar [email protected] March 30, 2022 @ 7:46 am
    Reply

    First, the TCA – the Technology Channel Association – was the first non-profit trade association founded in 2008. Second, this sounds like a SCTC move. “Every consultant member commits annually to a strict Code of Ethics, ensuring they work for the client benefit only and do not receive financial compensation from vendors and service providers.” They can only be paid by the client. So the health care org would need to pay the consultant.

    The problem with the FCC is that it is always on a 4 year cycle. Every President changes the chair and that changes the results. Frankly, the FCC has had some awful chairmen who have screwed up many things.

    It didn’t help that AT&T made this claim: “We thus agree with AT&T that the current rules “encourage[] the use of consultants or service providers which have made it easy for unscrupulous parties to create artificially low urban rates . . . , which feeds skyrocketing growth in the Program.” AT&T Public Notice Comments at 1-4

    You might need to get AT&T back on your side which will be a challenge considering someone is getting commissioned on these sales and they don’t want it to be the agent partner.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • FBI agent at desk
    FBI Issues Warning of Escalating Ransomware Attacks on Local Government Agencies
  • Grothjan, Donna_Aruba at Atmosphere 2022 Las Vegas
    Aruba Atmosphere ‘22: Day 1 Highlights Automation and the Edge Revolution
  • Military surveillance
    FCC Says Kaspersky Software Poses National Security Threat
  • Business Thinker
    What's On Your Mind? Share at CP Expo's Cybersecurity Peer Group

Upcoming Events

View all

Channel Partners Europe

June 13, 2023 - June 14, 2023

Channel Futures Leadership Summit

October 30, 2023 - November 2, 2023

Channel Partners Conference & Expo

March 11, 2024 - March 14, 2024

Galleries

View all

7 Channel People Making Waves This Week at AWS, Cisco, Snyk, CrowdStrike, More

June 9, 2023

Latest Channel M&A: ReliaQuest, IBM, Broadcom, Amplix, More

June 9, 2023

Images: Channel Partners Conference & Expo Best in Show Awards

June 9, 2023

Industry Perspectives

View all

Identity Is Increasingly Valuable – and Targeted

May 18, 2023

Gaining a Competitive Advantage through AV Managed Services

May 10, 2023

How to Build an Organization That Attracts and Retains Talent

May 1, 2023

Webinars

View all

From Problem to Profit: Mastering the Science of Selling Using Business Outcomes

May 9, 2023

Meet the 2023 Channel Futures Channel Influencers

April 13, 2023

DE&I Dialogue: How the Right DE&I Initiatives Can Propel Your Business

April 5, 2023

White Papers

View all

6 UCaaS Reseller Challenges and How Real World Businesses Solved Them

February 1, 2023

Frost Radar: North American UCaaS Market, 2022

February 1, 2023

The Complete Guide to White-Label UCaaS for Reseller Success

February 1, 2023

Channel Futures TV

View all

Coffee with Craig and James Episode 124: Palo Alto Networks

Motus: Partners Grasping Mobile Workforce Management Opportunity

June 9, 2023

Coffee with Craig and James Episode No. 123: MartinWolf M&A Advisors, CP Expo Preview

April 24, 2023

UScellular Takes On Rivals with Partner Program Simplicity

April 21, 2023

Twitter

ChannelFutures

Channel people making waves include @mnair1, @George_Kurtz, @mike_at_vulcan, @jzoblin, @jpatel41 and more.… twitter.com/i/web/status/1…

June 9, 2023
ChannelFutures

.@motusdotcom wraps its #CPExpo experience, talks mobile workforce management opportunity in the channel.… twitter.com/i/web/status/1…

June 9, 2023
ChannelFutures

Find out why #companyculture is significant when planning a merger or #acquisition. dlvr.it/SqR4ks https://t.co/gAUxiEW4yE

June 9, 2023
ChannelFutures

Great conversation with @Tom_D_Evans of @PaloAltoNtwks talking #cybersecurity, channel, more.… twitter.com/i/web/status/1…

June 9, 2023
ChannelFutures

The latest channel M&A includes @ReliaQuest, @IBM, @Broadcom, @AmpliXIT and more. dlvr.it/SqQntD https://t.co/DektC1Xmz9

June 9, 2023
ChannelFutures

Find out why everyone is talking about generative AI and cloud in this exciting new article >>… twitter.com/i/web/status/1…

June 9, 2023
ChannelFutures

In just 4 days, #ChannelPartners will come together in #London for #ChannelEurope. Professionals from the IT & Tele… twitter.com/i/web/status/1…

June 9, 2023
ChannelFutures

Kicking off a multi-part series, get the inside scoop on what changes are taking pace in the channel. In this galle… twitter.com/i/web/status/1…

June 8, 2023

MSP 501

The industry's largest and most comprehensive partner awards program.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X