The first step in combining services is contractually consolidating carriers. Carrier and contract consolidations result in more elastic commitments, streamlined and simplistic procurement processes, centralized and consolidated carrier invoices, deeper discounts and overall flexibility for your business.
Carrier Minimum Annual Commitments (MAC/MARC) and other liabilities are purposeful and inhibit companies from strategically managing their telecom volumes. While commitments cannot be completely eliminated, leverage can be applied in the negotiation to better manage your carriers and ultimately consolidate your business.
Carrier consolidation is defined to be both internal and external. Internal consolidation occurs when the products and service categories with the same carrier are brought under one contract and one commitment. External consolidation is the pulling together of multiple carrier services under a primary (and perhaps secondary) carrier while eliminating other vendors.
Companies almost never have their complement of carrier agreements be “Coterminous.” Typically, every contract has a unique end date, therefore precluding consolidation. The solution is not a quick fix. The first step is to negotiate all carriers across the board (both Mid-Term and Incumbent-Only negotiations will be the predominate strategy) and put all carrier agreements under the same start date and consolidate internally. During this initial negotiation, carrier leverages may exist to implement some external consolidation based upon uncommitted revenue. The second step occurs during subsequent negotiations when all carrier agreements expire on the same date and any further consolidation is desired.
- G2 negotiates coterminous agreements across all carriers and service types
- Consolidating carriers and agreements results in streamlined and efficient procurement processes
- Centralized invoicing through account and service consolidation
- Establish true single point of contacts and vendor management
- Our precedents allows us to remedy the carriers purposeful voice and data contract segregation
- Consolidate local, long distance and wireless under a single carrier contract with a single commitment
- Better leverage your business with incumbent carriers for future negotiations and with more options
For more information on G2′s capabilities in this practice area please contact us.