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Air, relays, cable out the window: how not to run into a monopolist provider in a business center


Here's how customers who got to the monopoly provider get out. Optics on lampposts - this is the "air".

One of our clients was looking for an office for rent in Moscow. I found a suitable one in a large business center: in the center, with parking and at an attractive price. The company entered into a contract for 3 years, poured several million into the finish, bought beautiful tables and carefully brought out sockets. 

But the rake knocked on the door when the IT service connected the Internet. The business center offered the tenant a choice of two providers: the bad and the very bad. Both worked in the building on exclusive rights and offered the Internet for 25% of the cost of the occupied space. And this is not the limit. The cost of the Internet can reach up to 50% of the area. So the landlord compensates for the cheap square meters. 

What the tenant ultimately gets: the contract is signed for a year or even three, the Internet is expensive, but of poor quality, and - a cherry on the cake - you can’t organize a backup channel.      

The problem is that this happens even in class A business centers. There are, inter alia, large companies with a staff of lawyers. We’ll tell you how to avoid this situation and what can be done if the worst has already happened.

What is dangerous "exclusive" 


An exclusive operator is a monopolist company providing communications in a specific business center. Moreover, according to the documents, everything may look good: two or three legal entities provide communication services, but in fact one cable comes into the building. Other Internet providers that are convenient for tenants, the owners simply do not let. Arguments may sound like this:

“We have only two operators, we can not afford more. It’s waterproofing, it’s broken, we can’t do it. ”

Such a monopoly affects prices and service. Internet speed does not match the stated, communication problems are fixed four days instead of four hours under the contract. 
 

How to protect yourself 


Read the contract carefully . The following clause is usually found in the agreement with the business center: the tenant is obliged to use the services of operators who are present at the facility. For example:

“The Lessee agrees that the telecom services are provided by the accredited company of the Lessor.”

Do not sign the document in this form. You can afford it, as the owner is very interested in tenants, while the competition in the commercial real estate market remains high. Most often, the BC owner at this stage agrees to make concessions.   

Team up with AXO. Usually, an economic unit (AXO or rental department) is engaged in leasing. His task is to find a beautiful and inexpensive office with good transport accessibility. IT is often forgotten: they do not connect fellow technicians to negotiations, do not pay attention to the working conditions of providers. 

So, if you plan to move, look at your colleagues from the rental department and request additional information:
  • a list of Internet providers in a new place;
  • optical cable routing scheme.



An example of the layout of an optical cable inside a building.

Do not be too lazy to ask for a "tour" to the business center. Go down to the basement and look at the cable entries or hire a team for this. It may turn out that the backup cable entry is only in the documents. 


This is how the cable entries into the building look. Actually just holes in the wall.

If for any of the points there are problems, sit down at the negotiating table with the property owners.

How to negotiate with a business center


Scenario 1: “Let My Operator”


  1. Give the owner of the business center an ultimatum: the company will only call if there is a specific provider in the building. 
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You won’t be able to completely avoid losses, get ready for additional costs. Your task is to minimize losses. 

Just pick up and call your operator will not work. If the BC already has a pocket provider, then for other operators the “exclusive” sets barrage rates. How it works: the "exclusive" offers operators to take the "last mile" from him. Once he owns the only cable in the building, then he can ask for any value for him. So, the price of Internet for users will be space. 

The good news is that there is still a chance to lay your cable. What arguments to use for this:
  1. Again, focus on the fact that your company is not a telecom operator and will use the cable only for personal, non-commercial, purposes. 
  2. If you are a major customer in this business center, discuss the prospect of long-term cooperation. It is beneficial for the owner to keep the anchor tenants, so that he will be ready to meet them. 

How to provide a backup channel in a business center


Let's say you managed to drag your operator into the building. But your company still needs a backup channel, and this requires a second cable entry. 

The owner is likely to be against the construction. You can offer the owner to build the cable entry themselves and transfer it to the owner for balance.

There are two options: do it after the end of the lease or immediately.   
In the first case, you undertake to pass other operators through this cable entry if the owner needs it. In the contract, you can immediately register the fee for the passage through the cable entry. In the second case, the cable entry immediately belongs to the owner, but in the contract you write down the conditions for the duration of your lease. For example, in exchange for the construction of a cable entry, the owner agrees to let two telecom operators of your choice free of charge. 

How else did tenants get out if there is no Internet 


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