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INFOTECH STUDY: OSS VENDOR MARKET SALES TO CLECS WILL BE $2B IN 2004 May 30, 2001 - OSS Market PARSIPPANY, NJ, May 30, 2001 - The competitive local exchange carriers (CLECs) who remain standing after the market shakeout will share the common trait of using Operations Support Systems (OSS) effectively to strengthen their bottom lines. According to OSS Opportunities in the Changing CLEC Market, a new study from NJ global consulting firm InfoTech, the market for U.S. OSS vendor companies will grow from $5.5 billion in 2000 to $6.4 billion in 2004 including a CLEC-portion of $1.9 billion. CLECs are planning to maintain some or all of their current OSS and acquire new OSS within the next year. With their current troubles, CLECs' reasons for implementing OSS have shifted from growing their footprint and customer base to capping staff growth, increasing profitability, and rapid service deployment. Based on CLEC interviews and surveys, InfoTech believes that CLEC priorities will shift back to center and include growing their base and maintaining good customer relationships. CLECs will be assisted in these efforts by OSS vendors such as MetaSolv (NASDAQ: MSLV), Granite Systems, and Kenan (NYSE: LU) The CLECs' focus on future services and on improving their back-office systems bodes well for the recovery and growth of this market. "Despite the 'survival mentality' we discovered in many of the CLECs we contacted, all of them are looking toward market success, albeit through less opportunistic strategies," said Jill Serpentelli, an Analyst at InfoTech. CLECs are also implementing packet-based networks to provision next-generation services. Another InfoTech study, E-Business in the Telecom Supply Chain, found CLECs leading the way to adopt new standards for e-business transactions, especially for ordering ILEC lines. The OSS/CLEC study reinforces these findings, with CLECs like Covad Communications (NASDAQ: COVDE) growing new technologies for B2B XML-based OSS integration. To purchase or learn more about these studies, please contact Craig Borne (infotech@accessintel.com). InfoTech is a subsidiary of PBI Media, LLC, specializing in global information and professional services for the telecommunications and data networking industries. InfoTech offers a comprehensive scope of information and professional services, including custom project consulting, market and competitive intelligence programs, tactical sales support tools, primary research studies, industry conferences and custom marketing programs. Further information about InfoTech can be obtained at the company's web site at www.accessintel-infotech.com. |
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