Situation: This customer was past the expiration date of their contracts with a major U.S. carrier. The carrier had provided numerous proposals but none of which were executed, for various business reasons. This situation led to a less than optimal negotiation scenario whereby the carrier held all the leverage. With expired contracts the carrier could move the customer to undiscounted rates. Further, being the only incumbent carrier of services the threat of loss regarding competitive bids from alternate carriers was perceived as eliminated, and the customer was bound to their incumbent’s demands through concern for the consequence to their business performance if they were to migrate any services to other carriers.
G2 faced an incumbent carrier that realized the lack of compelling leverage for this negotiation initiative. Yet, G2’s presence in the marketplace since 2000 resulted in carrier relationships that allowed us to quickly diffuse this 11th hour situation in an expedient manner.
We leveraged our “insider knowledge” and relationships in order to delicately manage the carrier and instruct them precisely how to perform to produce outstanding results for our customer.
Negotiation: A single incumbent carrier was involved in negotiations that comprised Wireline (Data and Voice) and Wireless services. The negotiation technique utilized was to issue a Carrier Requirements Letter that detailed for the carrier the exact rates / discounts, as well as several important terms and conditions that needed to be contained within their proposed contracts. The carrier was notified that the customer was aware that they were subject to undiscounted rates – with the acknowledgement that should they negotiate in bad faith and take this course of action then G2 would immediately commence a scaled-down, lightning-quick RFP in order to replace the incumbent carrier and to mitigate rate increases through signing bonuses and credits that we were confident of achieving.
Result: The carrier, armed with G2’s expected rates / discounts, terms and conditions, and aware of the implications of negotiating in bad faith, made the correct decision to refocus their efforts on a long-term customer.
Even though the carrier had provided numerous “Best and Final” proposals prior to G2’s involvement, incremental cost reductions achieved were 37.2% for the customer’s Wireline services and 43.6% for Wireless services. This was more than three times the customer’s best efforts during months of internal negotiations prior to G2.
Comprehensive Value Assessment
Regardless of your remaining contact term or situation we can determine your immediate savings opportunity.