Ten Pitfalls to Avoid When Negotiating Telecom Service Agreements
Jeffrey Sheldon & Justin Castillo
The transition to IP-based networks and the development of new utility standards for security and reliability in communications services pose significant challenges to utilities procuring carrier-based network services. Flowing these new standards down to carriers is difficult because they are wary of the potential expense and risk that could result. Further, while deregulation in the telecom industry created opportunities to negotiate special terms and conditions with carriers, it also removed many regulatory protections, which means utilities should not expect regulators to come to their assistance during negotiations. This article looks at ten negotiating pitfalls that, if avoided, will enable utilities to preserve leverage, manage risk, and improve deal economics.