Why am I charged for the hardware, the software and the bandwidth?

By Sudheer Dharanikota

December 29, 2016

What is the Problem?

Value based pricing has a different connotation for the operators than for the vendors. We encounter these pricing philosophy differences in all RFPs. How can an operator navigate through this maze of pricing strategies and come out favorable at the end?

Key Takeaways

  • Pay-as-you-grow models can be very expensive if not negotiated carefully
  • One needs to optimize the cost of high-volume deployment scenario(s)
  • Pay attention to the licensing pitfalls

Executive Summary

With the major network transformation happening in the cable industry, pricing plays a significant role in technology of choice. This white paper introduces some of the basic pricing topics and their inter relationships in selecting your next generation technology.

Knowing where the incentives are for the vendors and navigating through what is acceptable without giving away too much margin are essential in any RFP negotiation.

Key Words: Pay-as you grow, kit price, licensing, pricing strategies

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