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Demand Aggregation FAQ

What could ConnectTheDocs (CTD) broadband aggregation mean to you?

• You should have access to more cost-effective broadband pricing than you are currently paying.
• You should be able to purchase more and better broadband services at lower rates than what you could buy on your own.
• You should be able to choose the beginning date and term of contracts for broadband services.
• You should see lower broadband cost over time as more participants join in.

What is broadband?

In the United States broadband is usually defined as an Internet connection that exceeds 1.5 megabits per seconds (1.5 Mbs). This connection is typically available as basic residential service using DSL or cable modems. 

For most organizations in the health care field, this basic connection will not meet the demands of eHealth applications and services, such as ePrescribing, telehealth, telemedicine, online training, electronic health records, etc. 

Base-level broadband does not guarantee bandwidth. Business-class broadband service offers organizations broadband with guaranteed bandwidth, service level agreements, and, thus, offers a more reliable and operationally effective connection to the Internet or organization network.

What is broadband aggregation?

Broadband aggregation refers to the process of pooling buying power of various organizations to enable the acquisition of broadband services at lower rates—either for the same level of broadband service, or to acquire increased levels of broadband service more cost-effectively.

How is aggregation accomplished?

To ensure maximum flexibility for participants, CTD is using a business model that is focused around a third-party organization that will coordinate the aggregation process. This organization is called an “aggregator.” (Please note that this aggregator is not a telecommunications reseller.)

• A third-party aggregator is used to provide centralized control and administrative support to various broadband contracts.
• The aggregator establishes master contracts with more than one broadband provider based on the existing business needs of the broadband buyers (participants).
• The aggregator receives all broadband invoices for each participant and operates as the primary point of contact for all contract compliance.
• The aggregator applies a management fee to each invoice based on a fixed percent (not a fixed cost) of the total invoice. This fee is used to sustain the operations of the aggregator to ensure ongoing contract oversight, compliance and negotiations. (Note: There are no “start-up” fees assessed. Fees are only applied after accepting and entering into a contract for broadband services and after all fees are disclosed.)
• Each year, the aggregator will renegotiate all telecommunications contracts to leverage all additional purchasing power from any new participants who joined in the aggregation.
• 100 percent of any additional savings achieved through ongoing cost reductions obtained through each renegotiated contract is passed along to the participants.
• As more services are acquired and more participants added to the aggregation, increased savings are achieved annually.

Can I pull out of the aggregation?

Any participant can cease to be an aggregation participant at the end of their contract term. No withdrawal fees or additional termination charges are assessed by the aggregator.

Can additional broadband providers add their service offerings?

Additional broadband providers may request to be added to the list of available providers. They will then be eligible to bid on new participants’ broadband demand. 

These broadband providers should contact CTD at (888) 817-3813 for further information.

When will aggregation take place?

Aggregation will be done quarterly beginning in the fourth quarter of 2008, with initial broadband contracts going in place in the first quarter of 2009. 

For unique and special circumstances, ad hoc additions to the master contract can be accommodated if necessary.

As an aggregation participant, how much will I save?

Estimates are difficult because actual savings depend on a number of factors. Typically, participants pay less than they would pay for the same type of broadband if they had purchased it on their own. Your costs should decrease annually as more participants join the pool of broadband purchasers.

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