A Tactical Approach to Negotiating

Global MultiTheatre Telecom

Deals

Samuel Saavedra, Pricing Architect

Atlanta, Georgia 2012
SUMMARY OF QUALIFICATIONS 1 -– SAMUEL A SAAVEDRA

A well-rounded and versatile sales support professional with 15+ years spent
developing key skills.

Skills Details Where Used

Wireline PSTN skills IP and MPLS networks, Intl Private BellSouth, MCI, Verizon Business
Lines, Frame Relay, ATM
Wireless Skills GSM, GPRS networks, CDMA, Mobitex, Ericsson Inc, Verizon Business
WLAN / WIMAX
Mobile Commerce Skills Location-Based Services, Telematics, Ericsson Inc
Mobile Payment
Hosting / Cloud Skills Data Centres, Colocation, Managed Verizon Business, Internap
Hosting
Sales Support Skills Customer demos, tradeshow support, Ericsson Inc, BellSouth, Verizon Business
proposals
Finance & Pricing Skills Deal Pricing, Commercial Finance, Cost BellSouth, Verizon Business, Cisco
Accounting
Other Skills Native Spanish skills, GIS, database Ericsson Inc, Verizon Business
skills
SUMMARY OF QUALIFICATIONS 2 -– SAMUEL A SAAVEDRA

An experienced transactional pricing tactician with 9 years of experience in the

following areas.

Presales Deal Pursuit Contract Administration

Daily Price Quotes Opportunity Analysis Spend Reporting
Proposal Price Cost Modeling Billing Dispute Resolutions
Attachments
SOW Price Exhibits Tactical Pricing SLA Dispute Calculations
Job Change Order Contract Negotiation Addition of Amendments &
Quotes Exhibits
 A TACTICAL APPROACH TO GLOBAL MULTITHEATRE DEALS (1/7)
INTAKE

● A multi-theater deal arrives. – 200 Sites, 3 yr term

● Regions include Americas, EMEA and APAC
● Competitors include BT, DT and NTT
● Global System Integrators include: CSC, IBM and Accenture
● SI partner / deal owner on this deal: CSC
 A TACTICAL APPROACH TO GLOBAL MULTITHEATRE DEALS (2/7)
ANALYSIS

● Given: No operator has strong global POP density

● Given: Operator costs vary by theatre
● Action: Separate sites into individual theatres.
● Action: Produce an initial margin analysis by theatre.
 A TACTICAL APPROACH TO GLOBAL MULTITHEATRE DEALS (3/7)
DEAL ANALYSIS– E.g, US Operator with high Americas POP density.

● N. America: High POP Density, low costs, high margins

● LATAM: Lower POP density, higher costs, higher margins. Has
regional importance.
● EMEA: Good POP density, costs shared by partner, strong local
OPCO, decent margins.
● APAC: Low POP density, high costs, awful margins.

Line Item N. America LATAM EMEA APAC TOTALS

Gross Margin Numbers Are For Illustrative Purposes.

Net Revenue 15M 5M 10M 20M $50M US

OPEX Tbd Tbd Tbd Tbd $18.75M

Cost Factors 1M 3M 5M 12.6M $20.00M

Shared/ 54% 17% 36% -18% 22.25%

Operating Margin

Mason, Samuel R.
 A TACTICAL APPROACH TO GLOBAL MULTITHEATRE DEALS (4/7)
TACTICS 1

● N America: Slash MRC prices for these sites due to low costs.
● LATAM: Secure term commitments on high BW circuits.
● EMEA: Get as aggressive as possible.
● APAC: Offer reasonable prices knowing margins are negative. Secure key
strategic sites for future WINS. Leverage knowledge of network expansion
plans.
 A TACTICAL APPROACH TO GLOBAL MULTITHEATRE DEALS (5/7)
TACTICS 2

● N America: Ensure key sites are turned up Year 1

● LATAM: Control buildout of key sites, high bandwidth first
● EMEA: Leverage local OPCO for cost spread and custom deliverables.
● APAC: Leverage local OPCO for billing responsibility, cost containment;
engage System Integrator for cost-sharing.
 A TACTICAL APPROACH TO GLOBAL MULTITHEATRE DEALS (6/7)
Overall Tactics 1
● Protect Price Points – Never price far below market. Everyone loses. Use
discounts.
● Net Pricing approach – Tiered rates based on spend-level
● Net Pricing approach – back-end rebates, achievement credits
● Bundle site pricing – Don’t reveal access or POP strengths or
weaknesses.
● Used Phased Deployments – Influence the site turnup to match existing
network expansions and minimize pain.
● Leverage the Network Expansion plan – This is strategic
● Know the Customer’s growth plans
● Know the Customer’s pain points – some sites they just have to have, no
matter what price.
● Hard fought Concessions – Make all concessions look hard
● Easy Concessions – Custom Billing, reporting, project teams

Illustration - Montgomery and Rommel, the Battle

of El Alemein
 A TACTICAL APPROACH TO GLOBAL MULTITHEATRE DEALS (7/7)
Overall Tactics 2
● Easy Concessions – Custom Billing, reporting, project teams
● Harder Concessions - Site / Circuit acceptance, customer circuit terms
● Financing - Leverage operator, vendor and integrator Financing arms
● Global resources -- Leverage integrator, partners and operating company
resources to win and maintain the deal
● Tactical non-compliance - Factor in SLA penalties as a cost of doing
business
● Reciprocity -- Use spend-level reciprocity if you have to. (high-level play)
● Full portfolio – Use services out of scope to deal (e.g, wireless phones,
rural health support, cloud services)

Illustration - Montgomery and Rommel, the Battle

of El Alemein
THANK YOU FOR YOUR TIME
● A global pricing tactician who
fights for the WIN
● A Big Picture Commercial
Negotiator
● A seasoned business
professional

● Samuel A Saavedra
● Mobile: +1 404 450-2066
● samuelsaavedra565@outlook.com

Illustration: Generals Montgomery and Patton, Italy, 1944