A recent report in CNET concludes that AT&T “wont chase customers” in light of a lull in the ongoing wireless price war. “After a particularly cutthroat holiday period,” the article states, “the carriers are raising fees and paring back on promotional offers.”
While this accurately describes the latest trends in the wireless consumer market, IT executives should take note that the enterprise space is an entirely different beast, both in terms of enterprise wireless contract renegotiation and the impact of the latest trends in enterprise BYOD programs where the wireless providers must work even harder to retain their client base, leveraging incentives where stipends will drive consumer behavior. We are seeing savvy clients signing new wireless deals and achieving 20 percent to 25+ percent price reduction results, along with significant contract term and technology benefits.
From Alsbridge’s perspective, while AT&T has become a bit more conservative in recent months following as they have stemmed the tide of net wireless unit losses to Verizon, they can still be driven to market leading pricing and contracts if properly leveraged. Verizon, meanwhile, is becoming a bit more aggressive in pursuing top-line revenues, again while properly leveraged. While we’re seeing subtle shifts in negotiating tactics, clients can still win with a leveraged approach capitalizing on the best market intelligence and negotiating tactics.
In other words, done right, it’s a buyer’s market.
About the authorAs a telecom advisor and negotiator Phil specializes in telecommunications network sourcing and outsourcing projects, including long-term telecom outsourcing deals for large companies, and skillfully assists his clients in assessing their current telecom services without sacrificing the quality of the relationship between the client and telecom carrier.
About the author
Phil Hugus
Phil Hugus serves as Partner, leading ISG’s Research consulting and benchmarking practice for Europe. For the past thirteen years with the firm, Phil and his teams have led hundreds of client procurement, contract negotiation, benchmarking and market guidance engagements. Phil leads a team of industry provider experts providing global market intelligence, benchmarking support and sales enablement strategies for ISG’s provider and network carrier clients. Most recently Phil was assigned to oversee ISG’s Research practice in Europe. Phil’s vast experience in the telecommunications industry includes merger-related operations and restructuring, strategic development, market development and launch, strategic contract negotiations, and international management.
