Expert Negotiators of World-Class Telecom Contracts

Telecom Service Provider

Situation: As a telecommunications company, this customer utilizes it s Wireless and Long Distance services in direct support of its mission-critical operations, therefore relying heavily on these forms of communication. With well over 1,000 wireless subscribers on a Tier-1 nationwide network, this customer was content with the service offering and plan types of their incumbent carrier. The annual spending on Wireless and Long Distance was $3.5 million. The existing contracts had 2-years remaining in 3-year terms.

Negotiation: G2 was engaged to negotiate both Wireless and Long Distance services in support of this customer’s corporate-wide efforts to reduce costs. G2 reduced Long Distance expenditures with a direct and effective multiple carrier RFP negotiation strategy – permitted by the fact that this customer was billing significantly over its commitment. For the wireless negotiation, G2 conducted an in-depth traffic analysis and discovered certain calling patterns that made this customer’s wireless business highly attractive and profitable to all carriers.

Importantly, G2 developed leverage against the incumbent carrier that allowed the customer to potentially terminate the existing agreement due to low commitment requirements. The wireless negotiation consisted of a full RFP responded to by selected nationwide carriers. G2’s ability to find cause for and to establish a multiple carrier negotiation environment proved to be the key to this negotiation’s success.

Result: The results of the Long Distance negotiation provided for savings of over 45% on this component of network services. Wireless negotiations resulted in over 67% reductions. New telecommunication contracts were entered into with the selected carriers for Wireless and Long Distance services that established term commitments no greater than an additional contract year, based upon the previous existing contracts. In both cases, stronger terms and conditions were incorporated into the contracts that created future contract flexibility for this customer.

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