Situation: This Global Semiconductor Company was in 11th Hour Negotiations with their primary incumbent carrier for long Distance Voice & Data, Local and Wireless – AT&T. After over 8 months of contentious negotiation with AT&T, this client was able to negotiate a 13.9% reduction over their existing rates. They felt that there were additional concessions that AT&T could provide, but were told that they had received the “best and final” offer and were pressured to execute immediately due to their expiring contract.
G2 performed a Value Assessment and confirmed that there was additional savings that could be obtained through a professional negotiation. IDT was eager to engage G2, but was also directed by the CEO that the new agreement must be executed within two weeks.
Negotiation: Due to the CEO’s time constraints, G2 began negotiations immediately under an accelerated timeline. AT&T was issued a “Carrier Requirements Letter” which outlined specific pricing targets, as well as T&C’s that needed to be improved. G2 developed this Requirements Letter by utilizing our Benchmark Intelligence from other recent negotiations with AT&T for similarly-sized clients.
Because this client’s network was both domestic and international, it was important that AT&T elevate our demand internally in order to meet G2’s strict and imposed timeline. Further, there was only enough time allocated for one round of negotiations. G2 worked with the AT&T account team and Offer Management groups to facilitate this process.
Result: G2 concluded negotiations with AT&T only 7-days from when they were commenced, easily exceeding the CEO’s time constraints. Our expeditious efforts resulted in a 120% improvement over this client’s internal, 8-month long efforts.
G2’s expertise added nearly one million dollars in savings that would have otherwise been retained by the carrier, and accomplished this savings with little to no financial risk by our client.
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