U.S. EXPANSION MARKS BOON TO TELECOM EQUIPMENT MANUFACTURERS
February 2, 2000 - Multi-Client Studies


PARSIPPANY, NJ, February 2, 2000- US telecommunication service providers will spend more than $13 billion in 2000 to expand their global communications infrastructure and network reach. According to a series of studies just released by PBI Media, based here, that's expected to grow to more than $17 billion in 2002, an increase of more than 60 percent from 1999 levels.

While long distance carriers like MCI Worldcom (Nasdaq:WCOM), BellSouth (NYSE:BLS), Level 3 (NASDAQ:LVLT) and Global Crossing (NASDAQ:GBLX) battle to compete and meet the surging demand of the global business customer, it is equipment manufacturers such as Nortel (NYSE:NT), Lucent (NYSE:LU) and Cisco Systems (NASDAQ: CSCO), that are the real winners says the studies. "The invasion of US telecom giants into oversees markets will present a real challenge to traditional European providers like Siemens, Alcatel (NYSE:ALA) and Ericsson (NASDAQ:ERICY)," added Bruce Clark, senior consultant of PBI Media. "Given the magnitude of their spending, the global service providers are demanding seamless global servicing from their equipment providers. They have high expectations for proactive, value-added servicing and are willing to move their business to different suppliers to achieve it."

PBI Media also recently published associated studies including:

Broadband Local Access - Europe - The study evaluates and compares the core elements of technology, regulation and commercial business that impact broadband local access markets in Western Europe.

Wholesale Carrier Services in Asia - According to this study from PBI Media, Asian-originated traffic to the US will experience an estimated growth of 19 percent over the next two years. This growth, says the study, will be caused principally by the Internet and higher bandwidth download requirements. The research also indicates that the majority of international traffic in Asia is intra-Asia. Already at 59 percent - which is a similar percentage to that of intra-European traffic prior to European-wide liberalization -- the study predicts that by 2002, this will increase by a few further percentage points, indicating a longer-term growth trend. For local operators such growth in neighboring markets and throughout the region may be comforting, but it will prove ultimately very misleading.

Customer Perception of Carrier Pricing in Europe - PBI Media research is based on a telephone survey among 600 small and medium sized businesses in six countries - Belgium, France, Germany, Netherlands, Sweden, and the UK. Company size varied from 11 - 250 employees, with approximately half having under 100 employees, and operating in a variety of sectors - service, manufacturing, IT construction and engineering. This research clearly indicated that small to medium-sized companies interviewed had very little knowledge of how costs are charged, let alone what calls or services actually cost.

The European Leased Line Report - The burgeoning Internet market is the most significant user of leased lines which provide not only the 'transport routes' for Internet traffic, but increasing higher speed direct access links between ISPs and business customers. According to PBI Media research this is where future retail growth is anticipated. New IP-based service will drive bandwidth demand. These include media streaming, real audio and real video, videoconferencing and voice over IP.

A Survey of Pricing and Availability of European ATM Services - The objective in carrying out this study was to understand what ATM services are being offered, how they are priced and how these prices compare across Europe. The report raises the main issues with regard to service positioning and pricing. It highlights the difficulties many business customers will have in both trying to comprehend current ATM tariff structure or make a clear and concise decision for using ATM service.

Engaging Telco Users in a Winning Relationship - The aim of this study is to benchmark the relationships that exist between Telcos and users against world class approaches found both within and outside the telecommunications sector. A wide range of approaches to the sourcing of telecommunications services have been examined and analyzed to identify different levels of success, how success is measured and to identify the common factors that are shared in the approaches taken in the most successful of relationships.

European Billing: Buy, Develop or Outsource? - For this study, PBI Media interviewed a range of Telcos that varied widely in size and sector. Their activities cover all mainstream telecommunications activities. All of the interviewees were sufficiently senior in their organizations to be able to take a holistic view and provide representative data at interview. A generic process map was drawn up as a result.

Contact Craig Born at infotech@pbimeda.com or by phone at 973.884.0100


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