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Renewals

The 120, 60 and 30 day renewal rule

Why auto-renewals cost more than any rate increase, and a simple notice schedule that keeps the leverage on your side of the table.

DemarcLabs team · Oct 12, 2026 · 5 min read

Nearly every business telecom contract renews itself. The clause usually says that unless you give written notice 30, 60 or 90 days before the end of the term, the agreement extends for another term, often at the then-current rate. Miss the window by a day and you are committed for another one to three years.

Auto-renewal is the single most expensive thing that happens to a telecom budget, because it removes your ability to negotiate at the exact moment you have the most leverage. The fix is a calendar discipline, applied to every contract, with three dates on it.

120 days out: decide what you want

Four months before the term ends, look at the service and ask whether it is still the right one. Bandwidth needs change, offices move, and a phone system bought five years ago probably does not fit how the team works now. If you intend to renew, this is when you request a renewal quote and a competing quote or two. If you intend to leave, this is when the replacement project starts, because installs take 60 to 90 days.

60 days out: have the numbers in hand

By now you should have the carrier's renewal offer and at least one alternative. Carriers price renewals knowing that most customers have not shopped. Showing a competing quote, even one you do not intend to take, changes the conversation. This is also the last comfortable moment to send the notice of non-renewal if you have decided to switch.

30 days out: the notice deadline

Most notice windows close here. Whatever you have decided, the written notice must be sent and acknowledged by this date. Send it by email to the account team and to the carrier's notice address in the contract, and keep the acknowledgement with the contract. If you are staying, make sure the new term and rate are in a signed amendment before the old term ends.

Make the dates impossible to miss

Put all three dates on a shared calendar for every contract, not just the big ones. A single internet circuit that renews at list price for three years costs more than most people expect. Assign an owner to each renewal, and have the reminders go to more than one person so a departure does not take the knowledge with it.

DemarcLabs flags every contract at 120, 60 and 30 days before its notice deadline, assigns an owner, and opens the renewal with the quotes and the contract attached. Each company chooses which of the three milestones send an email.

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