CAMBRIDGE, Mass.--(BUSINESS WIRE)--June 20, 2005--
Equant, BT/BT Infonet, And AT&T Score High
According to Forrester Research, Inc. (NASDAQ: FORR), the
multiregional wide-area network (WAN) services market will grow
between 4.5 and 6.5 percent CAGR over the next five years as large
multinational corporations replace their aging legacy international
data WANs to improve communication application performance between
sites. Companies face a difficult time choosing providers as the
global telecom services market is still recovering from overcapacity
issues of the late 1990s and is evolving due to mergers involving
several tier-one network operators, and increased competition from
non-telcos -- notably, global virtual network operators (VNOs) and
specialist systems integrators (SIs). To help enterprises select a
primary WAN provider, Forrester evaluated nine of the largest
international network operators that offer WAN services in three or
more geographic regions.
Forrester estimates that these global network operators comprise
nearly half of the total market for multiregional WAN services. Other
network operators, such as Telefonica, Singapore Telecoms, and Global
Crossing, represent roughly 15 percent of the market. The SIs, VNOs,
and global IT outsourcers have about 37 percent of this market. The
Forrester Wave(TM) evaluated the global network operators that have
many large and mid-market multinational business customers with a
large number of overseas sites, and that also have MPLS points of
presence in at least 10 countries outside their home region,
including:
-- AT&T
-- BT
-- Cable and Wireless
-- Equant
-- Infonet (now BT Infonet)
-- MCI
-- NTT Communications
-- Sprint
-- T-Systems
Firms interviewed as part of the Wave evaluation told Forrester
that consistent delivery of service across geographies was the most
important issue in selecting a supplier. Other key vendor
differentiators included: service-level agreements (SLAs) with
aggressive and proactive penalty credits and good problem escalation
and remediation policies, easy-to-understand pricing models, and
financial stability.
Overall, Forrester found that Equant, AT&T, and the combined BT/BT
Infonet are well positioned to dominate the global WAN services market
over the next five years due to their comprehensive portfolios and
extensive reach of multiregional WAN services. Specific results
follow:
-- Equant is the clear Leader today. For most major evaluation
criteria, Equant demonstrated leadership.
-- AT&T and the combined BT/BT Infonet are Strong Performers with
potential to become Leaders. Forrester expects that when the
integration of BT Infonet is completed, BT's service offering
and geographic reach will give strong competition to Equant in
many international markets. AT&T also showed a strong
performance on breadth of service, service pricing, and its
overall value proposition; it is just a short step away from
Leader stature.
-- MCI, Cable & Wireless, Sprint, and NTT Communications are all
firmly positioned as Strong Performers. Most tier-one global
network operators will focus their sales and international
investments on existing customers and others that have most of
their sites within the vendor's IP backbone footprint.
Elsewhere, they will rely mainly on local carrier partners.
-- T-Systems is close to moving into the Strong Performer
category. To move up the company will need to enhance its
international WAN services portfolio by adding unmanaged
MPLS/IP VPNs and hybrid WANs. It also needs to improve its
value proposition message for non-German companies.
The research mentioned in this release, "The Forrester Wave(TM):
Global WAN Services, Q2 2005," also includes recommendations for
buyers. It is available to Forrester WholeView 2(TM) clients and can
be found at www.forrester.com.
The Forrester Wave Methodology
The Forrester Wave methodology is open, rigorous, and unbiased.
Forrester starts with an open criteria review process, verifies
findings against enterprise customer interviews, and checks facts with
vendors. This research is performed without sponsorship to help user
companies make better vendor selections. Forrester does not charge
vendors to participate in a Forrester Wave.
About Forrester
Forrester Research (NASDAQ: FORR) is an independent technology and
market research company that provides pragmatic and forward-thinking
advice about technology's impact on business and consumers. For 22
years, Forrester has been a thought leader and trusted advisor,
helping global clients lead in their markets through its research,
consulting, and peer-to-peer executive programs. For more information,
visit www.forrester.com
CONTACT: Forrester Research, Inc.
Kristen Wilson, 617-613-6205
press@forrester.com
SOURCE: Forrester Research