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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 116716
Experience:  Attorney experienced in commercial litigation.
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Our EXCLUSIVE bulk telecom contract ends in 12 months. As we

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Our EXCLUSIVE bulk telecom contract ends in 12 months. As we do not wish to renew the contract, we would like to start building our own internal building telecom infrastructure in time to switch to another provider at the end of this contract. Does this typical exclusive provider clause prevent us from building this infrastructure (which will also support fire alarms and security cameras) before the end of the contract? If not, given the time required to put in an infrastructure, it would be almost impossible to switch provider.
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

No, the exclusive provider agreement does not prohibit you from building your own new network to be in place for the time when the current contract ends. You are allowed to build your own infrastructure and equipment, but just cannot activate it or use it until the current exclusive contract is over and you would need to also make sure you give proper notice to the current company of the non-renewal.

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Law Educator, Esq. and 2 other Consumer Protection Law Specialists are ready to help you
Customer: replied 4 years ago.

Do any precedents or specific legal provisions exist in this area.


Just to be clear, the contract wording on exclusivity is as follows:

"the exclusive right to construct, install,and maintain the System on the Premises (whether by cable, satellite, microwave otherwise) and to deliver the Services to the Premises, unless otherwise required by applicable law."

Thank you for your follow up and for providing the specific language.

The clause provides them the exclusive right to maintain (etc) the system on the premises, but you are not installing a system to deliver services during the term of the contract. You are installing equipment to be prepared to take over upon completion of the contract and the equipment you are installing will not be active nor providing service to the building during the term of the exclusive contract.

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