Common Telecom Contract Mistakes

One of business owners’ most dreaded projects is rebidding their telecom services and negotiating a new provider contract. Simplified has helped hundreds of clients navigate this often-complicated process, and recommends the following tips when negotiating a telecom contract:

• Have a powerful “out" clause that serves the best interest of your business. Be sure to include terms that allow for "termination without penalty." Worded correctly, an out clause can provide you with leverage if the vendor isn't delivering up to expectations.
• Think ahead. Although it can be tempting to agree to a long contract in order to save costs, don’t go beyond three years. Improving technologies means it costs less to deliver telecom services every year. Negotiating annually can allow you to adjust Service Level Agreements (SLA) and key contract terms.
• Keep it clear and concise. SLA’s are designed to hold the carrier accountable, so make sure your agreement in the contract is clear and defined, and allows your team to get the support they need in a reasonable amount of time.
• Be flexible. Consider how your company may change and include flexibility that accommodates for growth. Include language in the contract that makes things like mergers seamless from a mobility perspective. 
• Make it easy. Ensure monthly billing and reporting is easy to understand and works for you and your team. During negotiation, be clear about the details you require in reporting.

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Having contracts in place makes it easy for a carrier to count customers and ensure predictable revenue. But telecom contracts are to your advantage as well. They eliminate guess work when conducting service audits and help to verify that your accounts are being billed correctly.

Call your Simplified agent to find out more about how your business can benefit from telecom contract negotiation services.

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