As my colleague Timothy Foust recently explained, major telecom carriers are showing signs of slipping account support, with increasing numbers of customers complaining about responsiveness to contractual amendments. Another common practice drawing the ire of customers is a continued push for “revenue replacement” in exchange for price reductions. One client recently told me that their carrier is reluctant to even talk to customers unless it’s about a new sale or service.
I’ve also noticed a few instances where a traditional local contract has expired and the service has defaulted to full tariff rates. When the client catches the change and tries to extend the discount, account teams have held the line and not provided credits to cover the difference between the full tariff billed and the contract rates. While they are in the “right” according to the letter of the agreement, the practice reflects poorly on account support. In the spirit of partnership, one would expect an account team to be proactive ahead of contract expiration.
The lesson for customers, not surprisingly:buyer beware.
About the author
Greg Martucci supports clients through all phases of the procurement and negotiation process, including strategy development, contract and pricing analysis and direct carrier negotiations.
