01
Timing and process
- 01
Renewal date confirmed in writing — not just from the account team's memory. Auto-renewal language requires written notice 30 to 180 days prior in most master agreements.
- 02
Negotiation started at least 6 months before the renewal date. Leverage drops sharply inside 90 days.
- 03
Three competing quotes solicited, not one. The incumbent moves only when an alternative is on the table.
- 04
Decision-maker calendar held for a sign-by date that the buyer controls, not a sign-by date the carrier engineered.
02
Term and pricing
- 05
Term length matches the business horizon, not the carrier's commission structure. Five-year terms favor the carrier; one- and three-year terms favor the buyer in volatile pricing markets.
- 06
Annual escalator clause priced into the model. A 3% annual escalator on a five-year contract is roughly a 12.5% blended increase by the end.
- 07
Volume commitments measured in dollars, not units. Unit commitments penalize buyers who reduce footprint mid-term.
- 08
Most-Favored-Nation clause requested for buyers spending over $250k/year. Cap the rate at the carrier's best published or contracted rate to similarly-sized buyers.
- 09
Promotional pricing converted to permanent. Discounts that expire at month 13 are the single most common renewal trap.
03
Service levels and credits
- 10
SLA uptime threshold confirmed (typically 99.9% to 99.99% depending on service tier). Anything below 99.5% on a business contract is below market.
- 11
Service-credit formula written as a percentage of monthly recurring charge, not a percentage of "downtime hours billed." The first formula is enforceable; the second never pays out.
- 12
Mean Time to Repair (MTTR) committed in writing with credits for missed targets.
- 13
Notification process for outages defined: who gets paged, in what timeframe, and how status updates flow.
04
Exit rights and flexibility
- 14
Early termination liability (ETL) capped, not unlimited. Carriers default to full remaining term; the market norm is 50% of remaining commitment.
- 15
Right to terminate for chronic service failure (3+ outages in 90 days, or 1+ outage over 8 hours) without penalty.
- 16
Right to terminate for business-event triggers: acquisition, divestiture, location closure. Negotiate "out clauses" tied to events the buyer cannot control.
- 17
Portability rights for phone numbers and IP space confirmed before signing. Hostage data is the most expensive thing to discover after the fact.
05
Redundancy and continuity
- 18
Diverse carrier or diverse fiber path documented in writing, not just promised in a call. Get the carrier to identify the physical entrance facility and last-mile path.
- 19
Failover behavior tested and documented. Most "backup circuits" have never actually failed over in production.
06
Billing and dispute handling
- 20
First three months of invoices audited against contract before the dispute window closes (typically 90 days). Most billing errors first appear in the second or third bill, not the first.
- 21
Dispute escalation path named: who at the carrier owns billing disputes, what the SLA is on resolution, and what credit policy applies if the carrier is at fault.
Next step
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