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Succession Clauses Reduce Fallout Of Telco Divestments, Mergers, And Market Withdrawal

June 15, 2010

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  • By Brownlee Thomas, Ph.D.
  • with Christine Ferrusi Ross,
  • Mark Grannan

Why Read This Report

Telecom service providers, like companies in other industries, sometimes merge with, acquire, or divest other business operations. These events sometimes result in the service provider deciding to decommission a service offering or exit from a geography. Forrester enterprise clients periodically ask for guidance on how to reduce the impact for their companies during these kinds of situations. Including a succession clause in your services contract will not only help you minimize the impact, but also define your exit strategy should you need to change providers completely. If your current contract does not include a succession clause already, ask your provider(s) about negotiating one now. Most providers will oblige for clients they want to retain.

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