Protect Yourself from the Price Volatility of Carrier Services


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The cost of telecom carrier services is in an almost constant state of flux. Prices are falling for some services due to competition and the desire of carriers to reduce subscriber churn, but other services are moving in the opposite direction. In an effort to reduce customer turnover, carriers try to attract subscribers to enter into long-term contracts by offering more attractive pricing on these agreements. Long-term contracts can be attractive for customers as well if certain clauses are negotiated into the agreement. This research note addresses things that every enterprise should know about negotiating with carriers, including:

  • Getting proposals from multiple carriers, and using them to negotiate the most attractive rates with the carrier of choice.
  • Knowing how and when to negotiate periodic price reviews into long-term contracts.
  • Working with carriers to provide “most favored nation” status to identify consistent discount levels throughout the life of a contract.

Long-term contracts with carriers do not have to be risky for enterprises. In fact, properly negotiated service agreements can be as attractive to the enterprise as
they are to the carrier.

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