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Negotiating Telecom? Waiting Can Be CostlyPINEHURST, N.C., Sept. 19, 2017 /PRNewswire/ -- Recently I've spoken with several executives who've stated that they aren't going to be negotiating their telecommunications agreements in the near term because they are in the process of transformation. This is alarming because it translates to a large opportunity cost and smacks of carrier rhetoric. The reality is, whether your transformation consists of a migration to SD-WAN, converged communications, or the implementation of a broadband network, the completion takes longer than forecasted. And this translates to a substantial loss of savings. The opportunity cost associated with embedded services is added to the opportunity cost associated with not competitively sourcing or benchmarking the future technology. The good news is there are ways to leverage fresh market pricing. The most common reason given for delaying negotiations during a transformation is that the final network design has not been determined and revenue-commitment costs are uncertain. Remedy: Estimate a low commitment percentage, below 75% of yur conservative projected spend post-migration, and move forward with negotiations without introducing risk to your organization. (http://www.g2inc.com/insights/) In addition, there are several other contractual protections you can use to pursue your transformation objectives without being hampered by obligations to your carrier.
The bottom line is that there isn't any situation that warrants a "cease and desist" on negotiations for telecommunications services. If your company is considering any form of network transformation or change there is still the potential for substantial savings today while also future-proofing for the flexibility needed down the road. About Suzanne and G2, Inc. For more information on G2, Inc, visit www.g2inc.com, or contact Kurt Gillis at [email protected] / 203-426-6720 View original content with multimedia:http://www.prnewswire.com/news-releases/negotiating-telecom-waiting-can-be-costly-300521121.html SOURCE G2, Inc. |