Telcordia survey revels communications network purchasing trends

Oct. 17, 2001--Contrary to conventional wisdom, efficiency and process improvements to enhance business performance are the major drivers behind communications network purchases among enterprise customers, rather than the increasing or changing demands of customers who rely on these networks, according to a study of large- and mid-sized enterprises commissioned by Telcordia Technologies, Inc.

Contrary to conventional wisdom, efficiency and process improvements to enhance business performance are the major drivers behind communications network purchases among enterprise customers, rather than the increasing or changing demands of customers who rely on these networks, according to a study of large- and mid-sized enterprises commissioned by Telcordia Technologies, Inc. Telcordia and Roper Starch Worldwide conducted the study of more than 600 financial, entertainment, technology and manufacturing companies.

Further underscoring their focus on enhancing business performance, the majority of companies stated they would continue to invest in technologies that increase operational efficiency, improve communications and reduce overall communications expenses over the next three years.

While most of the surveyed companies continue to report growing demand for network bandwidth over the next three years, carriers may not be capitalizing on opportunities to sell network-based services, which can directly help customers meet their needs for operational efficiency. With the exception of planning for CENTREX, companies across the board report they, not their carriers, initiated planning for network-based services such as virtual private networks, wireless access and fiber access.

"The survey data affirms that enterprise bandwidth demand will continue to grow and enterprises do plan to make some key purchases over the next three years. This represents significant opportunities for carriers who demonstrate to companies how network innovations will positively impact key internal processes and the cost of doing business," said Suresh Subramanian, group vice president and managing director of the Business Optimization Services unit of Telcordia. "To successfully market advanced network services, carriers must focus on creating new value propositions for their offers -- providing robust solutions and unique point products that help their customers enhance their business performance and that support sustainable, profitable market share. Carrier marketing strategies need to capitalize on the positive impact advanced services can have on internal processes and efficiencies, as well as customer demand, to drive corporate investment in new technologies and services."

When it comes to drivers for these internal process improvements, companies are relying on technologies such as telecommuting and remote access (50%), Internet access-on-demand (45%) and computer-based training (44%) to help enhance business performance. E-commerce topped the list of customer-focused technologies (44%).

About Telcordia Technologies, Inc.:

Telcordia Technologies, Inc., an SAIC company, is a provider of operations support systems, network software and consulting and engineering services to the telecommunications industry. For more information, visit www.telcordia.com.

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