Situation: This multinational, U.S.-based energy company was nearing the expiration date of their Tier-1 carrier contract that contained the bulk of their long distance voice and data services. The incumbent carrier won this customer’s business less than three years prior through a full, multiple-carrier Request for Proposal (RFP) process. The carrier provided appropriate mid-term reductions and had also provided a recent, sizeable reduction in an effort to avoid any competitive bid.
Because this client provided utilities to a regional consumer market, intrastate long distance rates were a key pricing element and made up the bulk of their inbound and outbound long distance expense.
Negotiation: G2 presented both an incumbent-only and multiple carrier RFP negotiation strategy to this client. The client’s choice was to allow G2 to engage solely with its incumbent long distance and incumbent local (providing in-state long distance service) providers. Under this course of action, G2 could leverage the existing carrier relationships as well as develop a useful form of competition.
A full Request for Proposal was crafted, targeting contract improvements as well as revised technical specifications. Both invited carriers bid aggressively and were subsequently required to make executive-level presentations prior to the final carrier award on customer service, invoicing, trouble management and other account team functions.
Result: As stated above, the client had already received a sizeable reduction through its own internal contract negotiations. G2 saved an additional 17.9% over these internal efforts and additionally exceeded the client’s targeted IT reductions by over 185%. The clear value that G2 brought to this client measured in the millions of dollars over the life of the new contract term.
The incumbent carrier retained the business and provided a truly precedent setting rate for the intrastate inbound and outbound voice products that made up the bulk of this client’s voice usage. Additional reductions were gained across every voice and data rate element already deemed “Best-and-Final” by the carrier.
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