Drafting and Negotiating Telecom Services Agreements Structuring - - PowerPoint PPT Presentation

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Drafting and Negotiating Telecom Services Agreements Structuring - - PowerPoint PPT Presentation

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Presenting a live 90-minute webinar with interactive Q&A Drafting and Negotiating Telecom Services Agreements Structuring Key Contract Provisions, Anticipating Legal Pitfalls, and Mitigating Risks TUES DAY, FEBRUARY 18, 2014 1pm East ern

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SLIDE 1

Drafting and Negotiating Telecom Services Agreements

Structuring Key Contract Provisions, Anticipating Legal Pitfalls, and Mitigating Risks

Today’s faculty features:

1pm East ern | 12pm Cent ral | 11am Mount ain | 10am Pacific

The audio portion of the conference may be accessed via the telephone or by using your computer's

  • speakers. Please refer to the instructions emailed to registrants for additional information. If you

have any questions, please contact Customer Service at 1-800-926-7926 ext. 10.

TUES DAY, FEBRUARY 18, 2014

Presenting a live 90-minute webinar with interactive Q&A

  • C. Douglas Jarrett, Partner, Keller and Heckman LLP, Washington, D.C.

Walt S apronov, Principal, Sapronov & Associates, P .C., Atlanta

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SLIDE 2

Tips for Optimal Quality

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FOR LIVE EVENT ONLY

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SLIDE 3

Continuing Education Credits

For CLE purposes, please let us know how many people are listening at your location by completing each of the following steps:

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SLIDE 4

Drafting and Negotiating Telecom Services Agreements

Structuring Key Contract Provisions, Anticipating Legal Pitfalls and Mitigating Risks

  • C. Douglas Jar

r e tt Par tne r Ke lle r and He c kman L L P jar r e tt@he c kmanlaw.c om Walt Sapr

  • nov

Pr inc ipal Sapr

  • nov & Assoc iate s, P.C.

wsapr

  • nov@wste le c omlaw.c om

4 The presentation and materials are for tutorial purposes only and are not to be construed as legal advice.

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SLIDE 5

Overview

  • Se r

vic e Offe r ings in E nte r pr ise - Base d T e le c om Pr

  • c ur

e me nts

  • Wire line / L

a ndline

  • Wire le ss (Mo b ile )
  • Da ta Ce nte rs
  • Pr
  • c ur

e me nt Basic s / Role of Consultants

  • “Busine ss” T

e r ms and Conditions

  • Pr

ivac y and Se c ur ity

  • "L

e gal" T e r ms and Conditions

  • Que stions

5

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SLIDE 6

Wireline Services

  • Pr
  • vide r

s

  • AT

&T ,* Ve rizon*

  • Ce ntury L

ink,* L e ve l 3, Sprint

  • T

e le fonic a , BT , NT T , Ora ng e , T a ta

  • XO, twT

e le c om, Ca ble Ope ra tors*

  • Re g iona l Ca rrie rs*
  • Sma ll IL

E Cs

  • Ge ogr

aphic Sc ope of Agr e e me nts

  • Dome stic , Inte rna tiona l a nd “Re st of World”
  • Contr

ac t T e r m

  • 3- Ye a rs, w/ two 1- ye a r re ne wa l options for c ustome r
  • T

ra nsition Pe riod

6

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SLIDE 7
  • Manage d Se r

vic e s*

  • Ma na g e d Route r/ Ne twork

Ma na g e me nt

  • F

ire wa ll & Intrusion De te c tion

  • Colloc a tion/ Da ta Ce nte r
  • Audio c onfe re nc ing
  • Cloud c omputing
  • Conte nt De live ry Ne tworks
  • CPE

(Rar e ly inc lude d)

  • Cor

e Se r vic e s

  • Voic e
  • T

DM to IP T r ansition

  • High spe e d Inte r

ne t Ac c e ss

  • MPL

S/ VPL S

  • Pr

ivate L ine

  • T

DM and IP

  • Spe c ial Ac c e ss
  • T

DM to IP T r ansition

  • Se r

vic e v. Dar k F iber

Overview of Wireline Services

7

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SLIDE 8

Wireline Procurement Cycle

  • Ke ye d to standar

d te r m of agr e e me nt

  • Inc e ntive s to Custome r

s

  • Be tte r pric ing , te c hnolog y / se rvic e s, ba c k –up c a rrie r, c ha ng e in

g e og ra phic re quire me nts

  • Be tte r busine ss pa rtne r
  • Avoida nc e of e nd- of- te rm / c ontra c t e xpira tion pric e inc re a se
  • Disinc e ntive s to Custome r

s

  • Soft a nd ha rd c osts of proc ure me nts(s)
  • L

imite d sta ff re sourc e s

  • T

ra nsition c ha lle ng e s; minimizing pe riod of dua l se rvic e

  • Dynamic s
  • T

iming

  • Cre dible thre a t of loss of busine ss for inc umbe nt c a rrie rs
  • Pote ntia l for ne w busine ss for a ll bidde rs

8

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SLIDE 9

Service Offerings

  • Se r

vic e Offe r ings in E nte r pr ise - Base d T e le c om Pr

  • c ur

e me nts

  • Data Ce nte r

s

  • L

ic e nse v. L e ase v. Suble ase (Why doe s it matte r ?)

  • T

e r m and T e r mination (Whe n c an you walk?)

  • Se r

vic e s, Oc c upanc y, Impr

  • ve me nts (What’s inc lude d?)
  • Utilitie s; Powe r

supply (Is powe r loss a for c e maje ur e ?)

  • Building Ac c e ss: Rise r

s, duc ts, wir ing, c ommon ar e as,

  • Use r

e str ic tions on the spac e : (How str ic t? Do the y matte r ?)

  • Assignme nt; Building sale ; L

andlor d bankr uptc y

  • De aling with Risk: Casualty, inde mnific ation; insur

anc e

  • Pr

ic ing, adjustme nts and inflation indic e s: De al pr

  • te c tions
  • F
  • r

e ign loc ations (De aling with for e ign pr

  • pe r

ty laws)

9

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SLIDE 10

Dome stic Car r ie r s Multinational Car r ie r s

  • AT

&T

  • Ve r

izon Wir e le ss

  • Spr

int

  • T
  • Mobile
  • MVNOs
  • Voic e , da ta a nd te xt
  • M2M
  • Vodafone
  • Softbank
  • MVNOs
  • Voic e , da ta a nd te xt
  • M2M

Wireless (Mobile) Services Providers

10

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SLIDE 11

Wireless (Mobile) Services

  • Voic e , te xt, data (migr

ation to 4G- - L T E ) and M2M

  • Smar

t phone s, iPads and table ts

  • Same se r

vic e s and de vic e s as offe r e d to c onsume r s (e xc e pt M2M)

  • Almost a lwa ys postpa id
  • Subsidize d sma rtphone s, iPa ds a nd ta ble ts
  • Sa me limits on unloc ke d de vic e s
  • Non- US Wir

e le ss- - distinc tions

  • Subsidize d de vic e s, e xc e ption ra the r tha n rule
  • Roa ming ra te s le ss e xorbita nt
  • More dyna mic involve me nt of MVNOs

11

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SLIDE 12

Wireless (Mobile) Services

  • Major

diffe r e nc e s fr

  • m c onsume r

pur c hase s

  • Pric ing – More Options
  • Pla ns w/ more disc ounts/ Ag g re g a te c re dits
  • Pooling
  • De vic e Re fr

e sh Cyc le (No Pe nalty Upgr ade s) be tte r than c onsume r s

  • Cor

por ate liable v. individually liable options

  • As c ompar

e d to wir e line se r vic e s

  • Wire le ss c a rrie rs do not foc us on upse lling non- c ore se rvic e s, ma y pa rtne r

with MDM c ompa nie s

  • Pr
  • c ur

e me nt Cyc le

12

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SLIDE 13

Wireless (Mobile) Services

  • Ge ogr

aphic Sc ope

  • Dome stic with inte rna tiona l roa ming— ve ry e xpe nsive from US c a rrie rs- - - T
  • Mobile is c ha ng ing U.S. – ba se d roa ming
  • Multi- na tiona ls typic a lly ha ve multiple a g re e me nts w/ c a rrie rs in c ritic a l

re g ions

  • T

e r m

  • 2- ye a rs, some time s a sing le one -ye a r re ne wa l option
  • L

ine te rms

  • M2M Offe r

ings

  • Wire le ss mobile ofte n pa rt of a n e nd- to- e nd se rvic e
  • De vic e s ofte n c a rrie r- spe c ific
  • Ce rtifie d but not subsidize d
  • Sta nda rd wire le ss te rm doe s not work for e mbe dde d de vic e s
  • MVNOs ha ve a muc h big g e r pre se nc e in this se g me nt

13

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SLIDE 14
  • Compe titive Bids:
  • (RF

I/ RRP); E xte nsions; Be nc hma rks

  • Propose d T

e rms a nd Conditions – Re sponse : ye s, no, e xpla in

  • Wir

e line / L andline :

  • Purc ha se / Re ve nue Commitme nts (Se e be low)
  • T

e rm/ Cre dits / Wa ive rs/ Sig ning bonus

  • Wir

e le ss:

  • Corpora te / E

mploye e L ine s (CRU/ IRU)

  • Ra te & Da ta Pla ns, E

a rly T e rmina tion F e e s (“E T F s”), Wa ive r pools

  • Mobile phone s / T

a ble ts / Apps

Procurement Basics

14

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SLIDE 15
  • Ge ne r

al:

  • Pla in E

ng lish

  • Simple Que stions vs. F
  • rm Contra c t Atta c hme nt
  • Re sponse Re quire me nts - E

a sy Compa rison

  • Pric e Prote c tion
  • Bid Compa rison (Se e Role of Consulta nts be low)
  • Non- e xc lusive , Prima ry & Se c onda ry Ca rrie r Se le c tion
  • Confide ntia lity / E

xisting Ag re e me nts

  • Bidde rs c onfe re nc e / Be st a nd fina l
  • T

re a tme nt of Re sponse in Contra c t Ne g otia tions

Procurement Basics

15

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SLIDE 16
  • RF

P Pr e par ation; De ve lop de mand se ts

  • Voic e / da ta tra ffic ; Inte rna l Study; "Spe nd a na lysis
  • Knowle dge of se r

vic e pr

  • vide r
  • bje c tive s
  • a nd a c c ount te a m motiva tions
  • Knowle dge of mar

ke t pr ic ing

  • Not public ly a va ila ble
  • Compe titive mar

ke t c he c ks

  • Pe riodic / Annua l pric ing re vie ws - Be nc hma rks
  • Optimization/ Billing audits / T

E M se r vic e s

  • Se c urity c ontrols (se e be low)

Role of Consultants

16

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SLIDE 17

Business Terms and Conditions

  • Se r

vic e L e ve l Agr e e me nts (Wir e line v. Wir e le ss)

  • Se rvic e Qua lity a nd Provisioning
  • Me tric s a re re le va nt a nd c re dits for individua l proble ms work
  • Chronic issue s typic a lly not a ddre sse d
  • Billing Ac c ur

ac y

  • A c ha lle ng e for ma ny c a rrie rs
  • Most c ommon sourc e of dispute s— a que stion of how ba d
  • T

ie re d dispute re solution v. Ca rrie r ha ving fina l word

17

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SLIDE 18

Business Terms and Conditions

  • Minimum Re ve nue Commitme nt
  • Busine ss Downturn Cla use
  • Compe titive Pr

ic ing Re vie w

  • Not just a c ommitme nt to me e t
  • T

e c hnology Migr ation

  • T

r ansition Pe r iod/ T r ansition Obligations

  • Upon e xpira tion or a ny e a rlie r te rmina tion se rvic e c ontinue s to be

provide d a t c urre nt ra te s for a pe riod of ____ da ys/ months

  • Ac c ount T

e am Suppor t

  • Re sponsibilitie s
  • Rig ht to re que st re pla c e me nt
  • Complianc e with Custome r

’s on- site safe ty and se c ur ity r ule s

18

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SLIDE 19
  • Data Se c ur

ity

  • Da ta bre a c h notific a tion la ws
  • Ca rrie r’s ne twork bre a c h notific a tion oblig a tion
  • Cybe r

se c ur ity

  • Comme rc e De pt. / NIST

publishe d sta nda rds

  • T
  • rt lia bility
  • Mobile e mploye e issue s
  • Corpora te c ontrol of e mploye e mobility ("BYOD“)
  • E

mploye r lia bility (Princ iple - a g e nt)

Privacy and Security

19

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SLIDE 20
  • Pr

ivac y polic ie s

  • Pe rsona lly Ide ntifia ble Informa tion (PII)
  • F

e de ra l T ra de Commission / Sta te A.G. E nforc e me nt

  • Ca rrie r polic ie s typic a lly inc orpora te d by re fe re nc e
  • Custome r

Pr

  • pr

ie tar y Ne twor k Infor mation (CPNI)

  • Sta tutory Re stric tion (47 USC 222)
  • On c a rrie r Use of c ustome r’s ne twork informa tion/ pe rsona l informa tion
  • Othe r tha n for ne twork ma na g e me nt / support
  • Without subsc ribe r c onse nt
  • Use d by a ffilia te s to se ll c ustome r a dditiona l se rvic e s
  • Sa le to 3rd pa rtie s

Privacy and Security

20

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SLIDE 21
  • Risk Alloc ation:
  • L

ia bility - Inde mnific a tion

  • Common L

a w/ F CC / F T C / Sta te E nforc e me nt

  • F
  • re ig n priva c y la ws

(e .g . E U Priva c y Dire c tive s)

  • Se c urity of c ustome r’s tra nsmitte d da ta
  • Ca rrie r v. Custome r re sponsibility
  • Custome r e nc ryption oblig a tions?
  • Pr
  • mpt Notific ation
  • (e sp. in Cloud e nvironme nt)
  • Re gulator

y Complianc e :

  • Atte sta tion a nd Ce rtific a tions: SAS 70 (now SSAE

16)

  • Industry spe c ific sta nda rds: PCI, GL

B, HIPPA

Privacy and Security

21

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SLIDE 22

Legal Terms and Conditions

  • Car

r ie r

  • v. Custome r

Agr e e me nts

  • Disc laime r
  • f c onse que ntial, inc ide ntal damage s
  • Damage s limitations and limite d te r

mination r ights

  • Sc he dule / Se rvic e / L
  • c a tion- Spe c ific v. E

ntire Ag re e me nt

  • E

a rly te rmina tion lia bility (in lie u c ustome r da ma g e s)

  • Inte ntiona l a c ts
  • Inde mnitie s
  • Mutua l
  • Inte lle c tua l prope rty (c ha lle ng e a s to wire le ss ha ndse ts)
  • Pe rsona l injury a nd prope rty da ma g e
  • Ca rrie rs will provide insura nc e c e rtific a te s
  • Custome r to Ca rrie r (Va rie s Wide ly)
  • 3r

d pa rty c la ims a s to c ustome r’s c onte nt

  • Viola tions of c a rrie r’s AUP (Inte rne t Ac c e ss Se rvic e )
  • E

9 1 1 re la te d c la ims a ssoc ia te d with VoIP

22

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SLIDE 23
  • L

e gal T e r ms and Conditions – and Re late d Conside r ations

  • Sc ope of F
  • rc e Ma je ure Provision
  • Busine ss Continuity / T

re a tme nt of Cybe ra tta c ks

  • Dispute re solution options
  • L

itig a tion v. Arbitra tion;

  • Pa yme nt dispute s / Disc onne c tion rig hts
  • Wire le ss c onsume r a rbitra tion
  • Online doc ume nts
  • Dra fting c onflic ts/ Priority c la use s
  • Choic e of la w; ve nue
  • Applic a tion of non- US la w

Legal Terms and Conditions

23

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SLIDE 24

THANK YOU!

24

  • C. Doug la s Ja rre tt

Ke lle r a nd He c kma n L L P 1001 G Stre e t NW Suite 500 We st Wa shing ton, DC 20001 202- 434- 4180 Ja rre tt@khla w.c om Wa lt Sa pronov Sa pronov & Assoc ia te s, P.C. 400 Northridg e Roa d Suite 515 Atla nta , GA 30350 770- 399- 9100 wsa pronov@wste le c omla w.c om