Multinational Corporations Demand More from Their Telecommunication Providers

By Joe Rizzo May 04, 2015

Over the last several years, there have been many changes in the way corporations work and run their businesses. One department that has seen a lot of changes is a company’s telecommunications structure. The maturity of Voice over IP (VoIP), WebRTC, along with the idea of employees being able to bring their own devices (BYOD) to work, has dramatically affected what Information and communications technology (ICT) services buyers require.

Ovum, an independent analyst and consultancy firm headquartered in London, which specializes in global coverage of IT and telecommunications industries, recently released the results of a survey whose respondents included over 500 multinational corporations (MNCs). This report is based on Ovum’s survey concerning enterprise insights of ICT decision-makers and influencers.

The report is designed to provide analysis of CIOs’ and telecoms managers’ ratings of their primary telecoms operators, where these operators are suppliers of global ICT services. Essentially, the results show that ICT services buyers and not satisfied with their global telecoms service providers with respect to network performance and customer support. In fact, the bottom line is that they now expect much more from their providers.

Image via Shutterstock

David Molony, who is principal analyst at Ovum, made the following comments, “Our research highlights the challengers’ achievements, and we feel it sends a particularly strong message to the big six. Global service providers in the telecoms industry should be treating existing contracts as if they are in continuous competitive tender. They should be looking to improve overall service performance across a range of criteria, and not just to address or improve on shortcomings.”

The big six that Molony mentions refers to what is considered to be the top six telecoms with dedicated global enterprise services. These include AT&T, BT, Orange, T-Systems, Verizon, and Vodafone. Some of the smaller companies that are currently challenging the big six are Easynet, Interoute, Level 3, Tata Communications, and Telstra.

Ovum’s survey found that the effective operation and management of an efficient, reliable and secure global network tops the list as the most important thing that MNC users want from their telecoms suppliers. The survey also rated how all of the telecoms mentioned above satisfied their customers’ needs.

Probably the most interesting result was the fact that the big six basically scored one point higher than the smaller and startup providers. According to Ovum, out of a possible score of 200, the big six achieved an average performance rating of 105 in global services, as compared to an average score of 104 for all other service providers.

A few of the questions that the respondents were asked to consider resulted in the following replies:

  • The effective operation and management of an efficient, reliable and secure global network is still by a distance the most important thing that MNC users want from their telecoms suppliers. Yet even the top-scoring telco service providers scored poorly on criteria such as problem resolution, geographic coverage, and delivery to SLAs.
  • The big six need to improve in account management, co-innovation with customers and delivering value for money, three areas in which their customers gave these suppliers their lowest scores.
  • Challengers such as Easynet, Interoute, Level 3, Tata Communications and Telstra recorded some high scores, rewarding their investment efforts in customer service organizations and advanced networking.

Oddly, it seems that some of the big six providers are quite content with their ratings. Does this mean that they do not intend to provide additional network performance and customer support? Does this mean that the new companies emerging will have a better opportunity to work with MNCs? It seems that Ovum’s survey produced more questions than answers.




Edited by Dominick Sorrentino

TechZone360 Contributing Writer

SHARE THIS ARTICLE
Related Articles

Mist Applies AI to Improve Wi-Fi

By: Paula Bernier    11/9/2017

Mist has created an AI-driven wireless platform that puts the user and his or mobile device at the heart of the wireless network. Combining machine le…

Read More

International Tech Innovation Growing, Says Consumer Technology Association

By: Doug Mohney    11/8/2017

The Consumer Technology Association (CTA) is best known for the world's largest trade event, but the organization's reach is growing far beyond the CE…

Read More

Broadcom Makes Unsolicited $130B Bid for Qualcomm

By: Paula Bernier    11/6/2017

In what could result in the biggest tech deal in history, semiconductor company Broadcom has made an offer to buy Qualcomm for a whopping $130 billion…

Read More

How Google's 'Moonshot' Could Benefit Industrial Markets

By: Kayla Matthews    10/30/2017

The term "moonshot" encapsulates the spirit of technological achievement: an accomplishment so ambitious, so improbable, that it's equivalent to sendi…

Read More

After Cisco/Broadsoft, Who's Next for M&A?

By: Doug Mohney    10/27/2017

Cisco's trail of acquisition tears over the decades includes the Flip video camera, Cerent, Scientific Atlantic, Linksys, and a couple of others. The …

Read More