BT Carrier IDD Volume Commitment Proposal

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BT Carrier IDDVolume Commitment Proposal

• Anthony Sheppard
• BT Carrier Services

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Background

• Market increasingly competitive
• Increasing volatility
• Increased use of Net Accounting
• Need to offer more stable, more competitive prices

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Proposal

• specific prices for committed volumes
• not a volume discount scheme
• price is for commitment
• send or pay basis
• standard price still available for uncommitted
  volumes

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How this will work (1)

• register with your Commercial Manager
• price for a route, DISC and DMSU
• minutes/month available at DISC and DMSU
• duration of offer 2-6 months
• min bid 5 of total, max bid 25, bid in
  increments of 5
• offers will be posted on the web as soon as
  normal notification has been issued

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How this will work (2)

• to bid you call a designated number
• accepted on first come first served basis
• bids confirmed by email and letter
• bids are contractually binding
• committed to pay for 100 of volumes
• oversend of up to 10 at offer rate

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Effect of Over/Under-shoot
100K mins. offered Std. Price 10 ppmOffer
Price 8 ppm
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Implementation

• Finalise admin. Arrangements
• customer registration
• new contract schedule
• Ensure customer awareness

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• SUPPLEMENTARY SLIDES

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Example of Oversend
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Example of Undersend