Situation:

A large rural ILEC had recently entered bankruptcy due to a large acquisition and flawed integration. The client needed to reduce costs to improve its financial condition, so it could emerge from bankruptcy.

Solution:

The team quickly received and analyzed the ILEC's cost data. It performed an assessment that identified several high profile cost reduction opportunities that could be implemented quickly. These opportunities were all related to the renegotiation of expiring contracts.

The team engaged with the client's vendors and leveraged their extensive industry background, cost benchmarks from other recent engagements and overall experience to drive significant reductions.

Benefits:

Over the course of 6 months, the team was able to secure several new agreements producing the following results:

  • Renegotiated wholesale LD agreement resulted in a greater than 35% (approx. $6M) annualized cost reduction
  • New multi-megabit internet deal resulted in annual savings of approximately $4M
  • Negotiated new MPLS contract (replacing existing Frame Relay network supporting internal network needs) which produced nearly $1M in annual savings