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Signing an MSA? Buyer Beware
Understanding a service provider's MSA can be intimidating. To the untrained eye, sifting through phrases like "Not withstanding the foregoing" can be an impossible task.
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Here are just a few of the more important concepts you should look out for before signing an MSA.
Early Termination Fees Early Termination Fees

Can the provider charge early termination fees? If so, how will they be calculated? Is there any relief in the event of an economic downturn? What if there’s another pandemic? Are the provisions clear and concise? Providers often use vague or ambiguous language in order to skew the contract in their favor.

Minimum Commitments Minimum Commitments

Do you have to commit to a minimum number of circuits, bandwidth, etc.? If so, what are the consequences of failing to hit the minimum? A provider’s remedy could range from mid-term price increases to termination for cause combined with early termination fees.

Service Levels Service Levels

What can be done if your service is interrupted? How much time does the MSA give the provider to rectify the interruption? Are recurring service interruptions classified as a breach justifying termination? Or are outage credits your only remedy?

Billing Disputes Billing Disputes

What are your rights regarding accurate billing? Is there a dispute mechanism? Can you withhold payment in “good faith” while a dispute is pending? Once you’ve paid the bill, good luck getting that money back.

Pricing Pricing

Can the provider increase the price at any time? If the MSA automatically renews, will the price increase? Providers frequently build price escalation into their MSAs.

 
We can help your customers deal with these issues on the front end before they become problems down the line. Our vast experience in both negotiating MSA’s and handling disputes enables us to identify issues before the contract is signed. So let your customers know that we’re here to help – they will thank you for it!
 
     
  About Ben Bronston - Telecom/IT/Cloud Lawyer
Ben is an award-winning legal expert focused on serving the needs of telecom, information technology (IT) and cloud clients. Ben and his team possess extensive knowledge regarding the legal and regulatory issues affecting a wide range of companies, including TSDs, agents, cloud service providers, MVNOs, hosted VoIP providers, MSPs and industry consultants.
 
     
 
  Ben Bronston
Telecom/IT/Cloud Lawyer
888.469.0579 | info@telecomlawyer.net
 
 
  www.telecomlawyer.net