Don’t Let Scary Circuit Agreements Haunt Your Budget!

By: Kody Pinson | Read Time: 2 mins, 15 secs.

What’s happening: In today’s fast-paced industry, Internet operators are grappling with escalating costs, particularly when it comes to their upstream circuits. Many operators face increasing pressure to optimize their operating expenses, especially in areas like IP transit and transport circuits.

• While operators often attempt to handle these negotiations internally, the opportunity for significant savings is often missed.

The opportunity for savings: Every operator relies on multiple external circuits to ensure fast and reliable data connections for their customers. Yet, far too often, operators accept legacy pricing, or first renewal offer without doing the diligence to ensure they’re paying a fair price.

Key strategies for reducing costs: Leveraging the expertise of a seasoned consultant offers distinct advantages over internal efforts, especially when it comes to cost optimization. Here’s how an experienced consultant can unlock value that an individual operator may miss:

1. Strategic Relationships — Leveraging long-standing carrier partnerships, a consultant can navigate complex negotiations, opening doors to better terms that may not be available to individual operators.
2. A Unique Perspective – At Leverage, we always say that our greatest asset is our unique perspective. While we are serious about maintaining client confidentiality and cannot share what others may be paying, by working with numerous operators, we gain perspective on the latest market pricing. Working with Leverage allows smaller operators to access pricing similar to industry leaders, something that’s difficult to achieve alone.
3. Market Intelligence — A consultant’s deep understanding of carrier margins and current pricing trends ensures well-timed, data-driven negotiations that maximize savings.
4. Persistence in Negotiation — Securing the best deal requires diligence. By refusing to settle for the first offer, consultants often achieve significant savings, far beyond what most operators can expect on their own.

Show me the Money: Leverage has a proven track record of achieving phenomenal results for our clients. In the last year, we have negotiated a deal that saved one client $12,000 per month. Our negotiation for another client resulted in a history-making all-time low rate per mbps with a national carrier.

The bottom line: In today’s increasingly competitive landscape, Internet operators can’t afford to leave money on the table. Legacy pricing structures are no longer sustainable when there are clear opportunities to optimize costs and improve profitability. An experienced consultant brings the knowledge, relationships, and negotiating power to uncover these opportunities and drive real savings.

• For operators looking to reduce costs without sacrificing performance, partnering with a proven consultant can be a game-changer.

Curious about how much you could be saving? Let’s talk. We offer a free consultation to explore what we can do to help your bottom line.