Telecom Contract Renegotiation Strategy for Utilities

This case study outlines the approach taken by a large electric utility company to manage telecom expenses effectively while keeping contract rates flat amidst rising prices. The utility, serving over 10 million customers across a vast service area, faced significant operational costs related to telecom services. To address this, they engaged Tangoe's Advisory Services to renegotiate three major telecom contracts. The primary objectives were to maintain existing pricing and minimize revenue commitments. Through strategic negotiations, Tangoe's consultants utilized market intelligence to identify gaps in pricing and leverage their negotiation skills. As a result, the utility achieved a total savings of $2.7 million over three years, with the largest savings coming from preserving pricing on their primary contract. The renegotiation also yielded additional savings from two other contracts, demonstrating the effectiveness of targeted negotiation strategies in reducing costs while maintaining service quality.