Expert Negotiators of World-Class Telecom Contracts

Fortune 500 Business Services Company

Situation: This Fortune 500 Company was mid-term into several long distance voice and data contracts. Their motivation for contract savings and improvements stemmed from a corporate-wide initiative to reduce the overall cost of business. This client was methodical in their due diligence and investigation process of our services and capabilities. G2 was invited to perform a Value Assessment and present our findings to both the IT and Procurement Executive Managements. Additionally, this client was inclined to engage in another consultancy, although this competition did not specialize in telecommunications contract negotiations, but did have a strong and successful existing client relationship.

This client had little risk in accepting our proposal to negotiate immediately. All contracts were mid-term and for a multitude of reasons G2 would be required to negotiate solely with the incumbent carrier. In the event that G2 did not perform successfully, this client could simply refuse to sign any new agreement, continue with the existing contract and negotiate independently at a later date.

Negotiation: G2 was hired over our perceived competition. The resources and effort expended in developing the Value Assessment resulted in G2’s full understanding of this client’s complex network and enabled negotiations to begin immediately.

Although negotiations were to be held with the incumbent Tier-1 carrier only, G2 was able to generate the proper leverage and appropriate strategy to ensure a successful engagement. A Carrier Requirements Letter was presented to the incumbent vendor and after an unprecedented two weeks the carrier provided the expected pricing results, effectively ending the negotiation and earning G2’s recommendation.

Result: The individual voice and data contracts were combined to provide a coterminous agreement for all services and greater leverage in future carrier negotiations. The monthly savings generated was over 35% and resulted in millions of dollars annually recovered immediately to the bottom-line. Contract terms and conditions were improved to substantially decrease this client’s carrier liability.


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