How enterprise telecom is priced
- Wireless
Mobile lines and devices
Priced per line or device on plans and pools, with device costs, overages and fees on top.
- Wireline
Circuits and connectivity
Dedicated internet access, MPLS and other circuits priced by bandwidth and location, typically on multi-year terms.
- Network
SD-WAN and managed services
Increasingly bought as managed or bundled services alongside security.
- Voice
Phone systems and calling
Legacy lines alongside cloud voice and collaboration platforms.
Most enterprise telecom is bought under multi-year agreements with volume commitments, and regulatory and administrative fees are added on top of the negotiated rates.
Where telecom costs build
- Inventory
Lines and circuits nobody uses
Inactive mobile lines and legacy circuits at closed or changed sites keep billing.
- Billing
Errors that go unchecked
Telecom bills are long and complex, and errors can persist for years.
- Plans
Plans that no longer fit
Usage changes faster than plan structures, especially in mobile.
- Fees
Surcharges that keep rising
Recovery and regulatory fees are often outside the rates that were negotiated.
What is changing
Carriers are competing hard for enterprise business, cable providers are more active in enterprise internet, and pricing on connectivity such as SD-WAN and dedicated internet has come down in many markets. Contracts signed a few years ago often sit above what the market now offers, which makes the renewal date an opportunity rather than a formality.
Where Deal IQ comes in
This page covers how the pricing works and where the cost builds. Getting a better price on your own contracts is the negotiation itself. Deal IQ negotiates telecom contracts across wireless, wireline, network and voice through our telecom cost optimization practice, as part of $20B+ in contract value negotiated across 3,000+ negotiations with 600+ vendors. Our negotiators work with a network of 350+ former vendor sales, pricing and deal desk leaders, and we negotiate directly with the vendor or behind the scenes with your team. Our fee comes from the savings.
Frequently asked questions
How are enterprise telecom contracts priced?
Mostly under multi-year agreements: wireless per line or device, circuits by bandwidth and location, and voice and network services as subscriptions or managed services, with fees added on top.
Where do enterprise telecom costs build up?
In inactive lines and legacy circuits, billing errors, plans that no longer fit usage, and fees outside the negotiated rates.
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