Expert Negotiators of World-Class Telecom Contracts

Leading Wholesale Distribution Company

Situation: This customer was at the end of their three year long distance contract and recently signed new wireless contracts with two different service providers. The customer unsuccessfully tried to procure a new long distance contract that produced significant savings and negotiated moderately aggressive wireless contracts. Their motivation for savings stemmed from a corporate-wide initiative to reduce the overall cost of telephony services.

G2 performed a Value Assessment and presented our finding to both the Senior Management and IT Department. The customer was surprised to learn substantial savings existed by negotiating a new long distance contract and re-negotiating their existing wireless contracts even though the wireless contracts were recently signed.

Negotiation: This negotiation’s success stemmed from G2’s expertise and the discovery of key leverage that was applied against the incumbent carriers, establishing a highly competitive negotiation environment.

A Carrier Requirements Letter was presented to the incumbent long distance carrier which specifically defined the price points they had to provide in order to retain the customer’s business. In an unprecedented two weeks, the carrier provided the expected pricing results and earned G2’s recommendation for a contract award.

G2 launched a competitive RFP between the two incumbent wireless providers, leveraged carriers against one another and clearly highlighted the lack of aggressiveness in the customer’s newly signed contracts. G2’s knowledge of market-leading wireless pricing, combined with the competitive nature of an RFP, forced the incumbent carrier to re-negotiate aggressively in an effect to “win back” the customer. Both carriers provided revised, aggressive contracts and retained their incumbent services. Additionally, G2 optimized all users into better defined and more cost effective rate plans.

Result: This initiative yielded a 48.9% reduction in overall costs and entirely new, more flexible contracts. The monthly savings generated by the negotiations far exceeded the customers expectations and added over one million dollars to their bottom-line. In addition to costs savings, contract terms and conditions were improved to substantially decrease this client’s liability.

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