What Telecom Service Contract Length Do You Want or Need?
Negotiating telecom service contracts can be a challenging task for business owners. Understanding complicated terms and details can be confusing, even for business owners with a solid grasp of technology.
Business owners should evaluate their dedicated internet access needs to negotiate a money-saving contract within their budgets. The contract should include fair dedicated internet pricing with reasonable bandwidth and connection quality guarantees.
Ideal Contract Durations for Rapidly Changing Technology
When negotiating a telecom contract, consider a length that gives you time to analyze the product and determine if you want to keep it. The best term for most businesses is 24 months – ample time to use the product. Some companies sign 36-month contracts, but no one should exceed three years with one telecom provider.
Technology changes rapidly, so a two-year contract allows business owners to upgrade when necessary. However, after the 24 months end, businesses can make changes to better suit their needs.
Stop the Automatic Renewal
When negotiating the service contract length, IT professionals should know what happens at the end of the term. Some contracts might automatically renew, as the default condition.
If this is the case, stakeholders need to contact their dedicated internet access service providers before the end of the contract, especially if they want to make changes. Always remove the evergreen renewal clauses to protect your service needs.
Negotiations should include penalty-free upgrades and the ability to make changes mid-contract. With so many telecom providers, service companies should be able to modify their contracts to meet the needs of their clients.
Read the Contract
Before signing the contract, business owners should look closely at the terms and conditions. The prices and renewal details should be clearly stated rather than hidden in legalese. Businesses with specialized contracts should have the agreed-upon details included. If they aren’t there, the contract needs to be changed.
Why Negotiate an Appropriate Contact Length
Telecom contracts should reflect a business’s unique needs. The contract length shouldn’t have more than the 24-month or 36-month term. It should include information about when the count starts for business owners to know when payments are due and when late fees begin accruing.
Businesses also need to have contracts that offer flexibility to fit changing needs. Contractual clauses should include details about reducing fees and services when businesses see a slump or if a legal change occurs regarding mergers or divestitures.
Request Upgrades During the Contract
Contracts also need details about technology upgrades, especially as telecom tech changes rapidly. No business should be stuck with old technology because of a poorly written telecom contract. A quality contract includes upgrades during the contract, especially if a beneficial or affordable upgrade occurs.
If the contract has limitations about upgrades and reducing fees based on more affordable technology, business owners should redline the contract and return it with annotations and changes. The telecom company will reply as negotiations continue.
Providing Coverage When Systems Fail
During the 24 or 36 months, the telecom company must provide services based on the contract. The telecom contract should include clauses that hold the telecom company responsible for the time when the services falter.
Businesses need their dedicated internet access services, and they lose money when the services fail. The telecom company should provide coverage elsewhere when they cannot deliver on their contractual service promises.
The telecom contract should include details about the renewal process. Many businesses start negotiations between 9 and 12 months before the contract ends. With a lengthy renewal time, stakeholders have time to negotiate what they need the most for their next contract term.
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