Case Study:
Beacon Helps Client Lower IoT Pooled Plan Rate From $12.50 to $3.50
The situation
"We signed a Carrier contract almost 5-years ago, and we don't fully trust they are offering new rates that are in-line with general market trends."
- Client VP of Product Development
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Asset Management company providing corporate equipment monitoring services in the US, Canada, and South America
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Had established an IoT contract with a major US Carrier in 2015
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Company plans to ramp production of connected devices from 2,000 to 25,000 in the next three years
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Company wanted to stay with current Carrier, but was not aware of current market rates, and did not want to pay outdated prices
"Carriers are like Cable companies: They typically only offer “deals” to “new customers only”. This means many companies that signed a Carrier IoT contract more than 1-year ago pay outdated rates, while new, unproven companies get the benefit of updated market prices."
Spencer Freeman
President, Beacon Pricing Advisors
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Beacon considered the many unique aspects of the Client’s use-case, and educated the Client on what they should be paying their Carrier for IoT connectivity service
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Beacon also negotiated directly with the Carrier on the Client’s behalf with the goal of receiving Carrier approval for much lower IoT rates
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Beacon was ultimately able to negotiate Carrier terms from the original $12.50 to $3.50
- Client CEO
"I feel like we’re being penalized for initiating IoT service so long ago; I feel stuck in an outdated contract."
What Beacon did...
Results
72%
Carrier's amended pricing was 72% less than the current rate ($12.50 to $3.50)