Ovum: Wholesale telecom suppliers not delivering for customers

Wholesale telecommunications services suppliers are failing to deliver excellence in products and services, which is adversely affecting their customers' competitiveness, according to the results of a wholesale customer survey by independent consultancy Ovum.

David James, Ovum principal analyst and author of the report, commented, "The economic crisis, combined with fierce competition, has forced wholesale prices down. But in spite of the tough environment for wholesalers, their customers report that there are expanding gaps between what they expect from their suppliers and what is being delivered to them."

Wholesalers are getting it wrong by offering too wide a wide range of products, says Ovum. A clear conclusion from the survey is that customers want specialist suppliers with in-depth offerings, not generalists with broad portfolios.

Customers under pressure also feel aggrieved about the shrinking price gap between wholesale prices and what they can expect to achieve in the retail market, which affects their ability to be competitive. Ovum’s research found this area is one of the most crucial for customers.

Most worrying, says Ovum, is the finding that the quality of products and services is falling significantly short of what wholesale customers require.

Ovum’s report offers several recommendations for wholesalers to help them succeed in the competitive wholesale market: listening to their customers and responding to their priorities, and understanding the retail trends and pressures that are driving their customers top the list.

James added, “Telecoms service providers are losing business due to increased retail competition, but some of that can be won back through wholesale if they get their approach to customers right. They must first demonstrate their commitment to the wholesale market by developing the services, business models, account management, and flexible customer support required by the expanding range of wholesale customers.”