Situation: This client provided G2 the opportunity to present our negotiation services at the 11th hour of their own internal-run long distance negotiation. Their new three-year carrier contract was approved, executed and was about to be delivered to their Tier-1 provider for countersignature. Local services were not considered as part of the client-conducted negotiation.
Negotiation: The client’s preference was to retain its incumbent carrier. However, G2 presented a compelling case to approve a multiple carrier Request for Proposal negotiation strategy for both its local and long distance services. Local services were targeted for savings, but were also used as leverage to maximize long distance savings. With the client’s agreement, G2 invited two Tier-1, one Tier-2 and one RBOC carrier to respond to the RFP. Both the long distance and local incumbent carriers were positioned to win additional business.
Major products negotiated included local lines, T-3/T-1 access, features, MPLS, standard outbound and toll free voice, router management, router maintenance and USF taxes.
Result: The client chose to delay receiving the savings they already earned through their own negotiation efforts for the possibility of receiving substantial, additional discounts.
G2 negotiated an added savings of 27.8% on long distance rates above what the carrier earlier pronounced as their “best and final offer.” Incredibly, G2 earned for this client a 62.8% discount on its local services – an opportunity that would never have been exploited without our analysis, recommendation and negotiation expertise. The local incumbent carrier did not retain the business, but the winning carrier provided a credit to assist in migration costs. To better manage their business, the client received coterminous end dates for both its long distance and local contracts.
G2 improved all terms and conditions, but most notably the client received a highly-favorable Minimum Annual Revenue Commitment that represented only 50% of the new run-rate. Additional and significant enhancements also included the removal of carrier exclusivity.
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