Vanco does not own telecoms assets and is incentivised to pass on falling telecoms prices to its clients. It continually engages in competitive tendering for the underlying network infrastructure to deliver the lowest lifetime cost.

As Vanco does not own telecoms assets and does not have a vested interest in selling incremental bandwidth, it has shared interests with its clients. It is this position which enables Vanco
to deliver significant cost savings from Day One of its network management contract but more importantly the lowest lifetime cost. These cost savings will derive from Vanco’s VNO relationship with suppliers, engaging multiple carriers in competitive tendering for the underlying network infrastructure.

Smart Purchasing
This is the ability to take advantage of all the options in the marketplace to ensure a lowest technology cost solution at any point in time. In essence it’s all about getting the right mix: optimizing the right technology in a package which enables Vanco to deliver the right service level to meet clients’ needs
and hit that crucial price point. Smart Purchasing is built around the combined knowledge and experience of Vanco worldwide. At a macro level this is done annually for the whole network, and at a micro level for every move and change within the network. The macro level changes are made through Vanco’s Active Negotiating Process (ANP).

Vanco maintains flexibility for its customers by only buying specific transmission technology on a short term contract, and is therefore able to continually assess the competitiveness of the solution and offer customers the potential to refresh the network to achieve their business goals, whether these are increased functionality and/or decreasing costs. Vanco maintains very competitive purchasing prices through a combination of multi year spend commitments (non service specific), wholesale agreements, a wide choice of supply carriers, and aggregated spend across a number of large enterprises (essentially a buying club).

Crucially, Vanco is actually incentivised to do this. Through a contractual agreement, clients retain 70% of all cost savings, and Vanco retains 30%; it is therefore in Vanco’s interests to perform ANP to achieve the maximum advantage for its customers. This process ensures that Vanco’s contracts are always directly in line with the market and remain competitive.