Situation: This client hired G2 to negotiate mid-term contracts with 3 incumbent carriers to reduce costs and, importantly, to strategically incorporate existing topology pricing for network services utilized as well as numerous other technology topology pricing for “future situations” whereby The client had interest and/or concerns about implementation of an overall and long-term solution. The end-result of negotiations that the customer wanted was, at most, a dual-carrier award (mostly for redundancy purposes) that involved managing volume commitments not yet satisfied and also vastly improved terms and conditions to maximize overall contract flexibility while minimizing all aspects of potential carrier liabilities.
G2 was hired after a competing telecommunications company had been involved in negotiations that were completed some 18 to 24-months previously. Interestingly, the “competing” company did not lead negotiations – rather, they “sat by the side” of the client and communicated steps to take. G2, unlike this competitor, leads all negotiations from start to finish and does not take a limited and inhibited role in negotiations.
Negotiation: The negotiation initiative involved 4 carriers, the three incumbents and an additional Tier-1 carrier, for Long Distance services that included a complex and hybrid mix of data and voice services.
This formal RFP initiative was commenced at the client’s headquarters location with all carriers present. The RFP Bidder’s Conference was a 2-hour presentation where requirements were laid out precisely without presentations from the invited carriers – but one where specific and unambiguous requirements were provided. G2, as always, invited all carriers to participate in on-going “carrier coaching” sessions and strategy discussions to best present their formal offerings and comprehensive bid responses. G2 participated with each carrier’s Finance/Proposal departments during the course of negotiations and tailored all final responses in accordance with the customer’s demands and requirements.
Result: The final result of negotiations was an incumbent-only solution involving the 3 current providers, one of which was eliminated during the first 12 months of the award. Thus, the dual-carrier award solution was achieved while receiving best-in-class results during the “draw-down” of services with one of the incumbent carriers eventually eliminated from the overall carrier mix. G2’s results exceeded the clients’ expectations of cost reductions of 27% – based on iterations of negotiations and carrier coaching that involved seven rounds of responses. Typically, G2 takes no longer than two rounds of responses to achieve best-and-final results – the only implication involved in this negotiation were complex future technology concerns that carriers were tasked to present in numerous formats. Ultimately, the result of negotiations was new 3-year term awards with modest commitments and 30%+ cost reductions.
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