Expert Negotiators of World-Class Telecom Contracts

Fortune 500 Global Specialty Food Producer

Situation: G2 was hired by this client to negotiate new coterminous contracts with all of their Long Distance (Voice & Data) and Wireless telecom providers. Our client was focused on obtaining the best rates, terms & conditions in the market, but also on consolidating their carrier base down from the existing 16 carriers they utilized. These carriers provided service both domestically and internationally, each with a different contract end-date, so synching up all telecom contracts was a priority of this initiative as well.

Negotiation: The client made it clear that certain services, such as their data network, would be difficult to transition and in these situations they preferred that G2 conduct Right of First Refusal negotiations with the incumbent only. Other services, such as Voice, Conferencing, IP and Wireless would be negotiated through a fully-competitive RFP.

G2 conducted all of the negotiation initiatives within a very strict timeline that the client mandated. At the Bidder’s Conference, G2 provided the carriers with specific pricing targets and other contractual requirements that they would need to attain if they wanted to secure the business. G2 worked closely with each carrier’s Finance/Offer Development organizations to ensure that carrier responses would be in-line with our client’s expectations.

G2’s experience working with International service providers allowed us to negotiate competitive bids at locations in Latin & South America, Europe & Asia, and also requiring extensive network topology and testing to occur in conjunction with each carrier response.

Result: At the conclusion of negotiations, G2’s efforts yielded savings of 31.3% across all services and carriers, with some individual negotiations receiving 40%+ in savings. Further, the client originally had 16 carriers to manage, but at the end of negotiations, only 8 new carrier contracts needed to be signed moving forward.

The client’s senior management had established savings goals of 20% at the onset of negotiations and was pleased to see that G2 had exceeded that goal by over 55%. Additionally, G2 negotiated favorable terms & conditions within each contact with a focus on maximizing our client’s flexibility while minimizing their liabilities.

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