Advice: Fighting the incumbent’s contract

Aug 3, 2020 by

Many clients are contacting me with suggestions on how to face the biggest challenge in the VoIP business environment.
Catching the customer prospect at an opportune time for them to exit their contract is important in establishing a long term business relationship.

Many LCR providers and incumbents have their customer in some sort of contract that has a termination penalty. The key here is to target the business customer that might only have a few POTS or Premi-Cell lines from the incumbent, where there might not be a contract. However, what to do if they are locked into a contract?
What you should do is advise the client that since his current contract (with the incumbent) is not saving him enough money, or offering the added services which you offer, you are willing to provide him your services at no monthly costs (except for the call/bandwidth costs of course) and no setup fees until his contract with the incumbents run out. This will give him enough time to test your product and also benefit from digital telephony technology and its cost savings. He can use the incumbents contract until his monthly allocated minutes (or airtime) has expired, then set the system to overflow to your service.

You should however, upon end of his current contract with the incumbent, request that since he’s tested the system and we’ve been able to provide him with the accurate results in cost savings and higher quality service, he signs a new beneficial contract (24months) with you and pays for the postponed ‘once off’ installation/hardware costs. A monthly rental will also be levied from here on.

At least you get your foot in the door, your client has little risk but much benefit, and everyone wins (except your competitor).. just a patience game for long term gain…

Mohammad A. Patel
O-Tel Africa


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