Why does everyone forget about local loop contracts in enterprise deals

I keep seeing teams sign multi year fiber deals without checking what happens if the local loop provider changes terms mid contract. Just last month my company in Portland got hit with a 15% rate hike from the last mile provider because we locked into a 5 year deal with a big ISP but didn't secure the local loop pricing separately. The sales rep literally said "oh yeah that's between you and the LEC" when I asked about it after the fact. Now we're stuck paying extra or breaking the contract for a penalty. How do you guys handle this when negotiating enterprise contracts? Do you always split the local loop and transport into separate agreements?

2 comments

2 Comments

rayc8919d ago

Portland guy here. Always split the contracts. You learned the hard way too?

wendy_carr19d ago

Think splitting contracts is standard for everyone but it's not always the best move. If you're dealing with a small job under $5k, splitting it into smaller bids can actually cost you more in overhead and paperwork. I've seen guys lose money on tiny remodels because they split it into 3 separate contracts with permits for each phase. The real trick is knowing when to split and when to roll it into one.