Situation: This client engaged G2 to negotiate new contracts with all three of their incumbent Wireless providers. Across all carriers, they utilized nearly 35,000 Wireless devices including traditional voice, voice and data, laptop aircards and push-to-talk plans. They also deployed a large fleet of telemetry devices used for a myriad of purposes such as WAN back-up, on-board instrument monitoring and maintenance bay and storage yard tracking.
Initially, this client conducted negotiations on their own and then partnered with a competitor of G2. However, after several months of negotiations with only modest results, this client recognized G2’s expertise and hired us to spearhead an 11th hour competitive RFP effort. G2 was informed that all three carriers were to be retained and that user migration was not preferred. There were also several business-critical and unique wireless applications that needed to be taken into consideration with each individual provider.
A unique aspect of this project was the significant reciprocal business relationships and executive ties that required negotiations to be conducted tactfully and with careful consideration.
Negotiation: After analyzing the client’s Wireless user base and historical usage, G2 identified several areas to target for improvement during negotiations, as well as custom rate plans that the client was not aware of. G2 conducted a multiple-carrier, competitive RFP for various Wireless services with all three incumbent providers.
In addition to pricing reductions, G2 focused on improvement to terms and conditions, such as accelerated device refresh periods, waivers of termination fees, corporate incentives for employee-liable growth, minimal commitment levels and improved service levels.
During negotiations, G2 escalated our demands to contacts at the highest level in the carrier organizations and leveraged recently-negotiated contracts in order to gain carrier concessions.
Result: This 11th hour negotiation netted a 33.2% reduction beyond the best efforts both of this client and the competitor prior to engaging G2. Additionally, G2 reduced telemetry pricing by 60.7%, which is the fastest growing area of Wireless spend for this client.
G2 negotiated waivers of many key Wireless features such as: upfront and annual credits, allotments of termination and early upgrade waivers and improvements across the board to all Voice, Data, AirCard, Text, International and Telemetry Plans, including numerous unprecedented Custom Plans that were designed specifically for this client. G2 also successfully negotiated verbiage that allows for other subsidiaries of this client’s parent company to purchase under the new agreements.
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