4. Development of the auction design and implementation of the auction
In the telecommunications market for business customers there is a pronounced supplier oligopoly. Often, due to technological requirements, only one competitor can even be considered as an alternative to the existing provider. The highly restricted competition makes effective market pricing to the detriment of purchasing more difficult.
Moreover, as the cost structures of the suppliers are also very similar and the marginal costs of the services are very low, the existing supplier could "go along" with any offer of the competitor. The competitor would therefore have no chance of winning the customer, with the result that in many cases the competitor would not make any offer at all or at least not an attractive one. The purchasing department would then only have the possibility to accept the non-competitive offer of the existing supplier to extend the contract.
Our auction designs address the problem of this market failure and create a highly competitive environment. This ensures that the customer not only receives tailor-made services, but also the best possible prices from every supplier.
In addition, our designs take into account any specific requirements you may have, e.g. in the form of minimising the probability of a change of supplier while maintaining complete procedural transparency vis-à-vis the suppliers.
5. Contract review and creation of the migration list
With the conclusion of the auction, all commercial and technical regulations are legally binding. After the bidder who won the auction has drawn up the formally final contract, we check the contract for conformity and completeness with regard to the provisions which are the subject of the auction.
In parallel, our system creates the migration list, i.e. the complete overview of the allocation of the tariffs and options calculated as optimal to the respective current users. Based on the migration list, the provider can immediately carry out the corresponding conversion of the tariffs, so that neither purchasing nor IT costs arise in this area.