IDC Evaluates U.S. Enterprise Telecom Service Providers

By PRESS RELEASE — November 03, 2008

FRAMINGHAM, Mass. October 20, 2008 -- IDC's new IDC MarketScape report profiles the leading providers in the U.S. enterprise telecommunications services market. IDC MarketScape vendor analysis reports utilize a rigorous scoring methodology that produces a definitive assessment of each vendor's current market capabilities and strategies for competing in the future.

In IDC MarketScape: U.S. Enterprise Telecommunications 2008 Vendor Analysis (Doc #214572), IDC evaluates the offerings and prospects of eight U.S. telecommunications service providers: AT&T, Global Crossing, Level 3, Qwest, Sprint, tw telecom, Verizon, and XO.

These service providers were evaluated using 48 specific criteria within six major categories that IDC identified as key factors contributing to vendor success in the U.S. enterprise telecommunications market. The results were used to create a graphical representation of the market based on each service provider's current capabilities and future strategies.

This IDC MarketScape methodology placed AT&T and Verizon in the Leaders category. AT&T earned a high strategies score in the evaluation on the basis of its clearly defined product strategy both in voice and data services. AT&T also earned high marks for its efforts in integrating its legacy and IP, as well as its wireless and wireline infrastructure and organizations. Verizon earned high marks for its current capabilities, including its range of features, and its clarity in presenting its well developed suite of solutions. It also benefited from a top-ranking position in enhanced services capabilities, including security services and WAN optimization.

Three service providers were listed as Major Players. Qwest emerged as a leading national provider, earning good scores in both the capabilities and strategies areas for its robust portfolio and aggressive efforts to create a strong alternative for enterprise customers. Global Crossing earned solid strategies scores for its efforts to differentiate itself from competitors and for its well-rounded capabilities. Level 3 was positioned as a Major Player on the basis its product portfolio and its strategy for growing market share in the long term.

This IDC MarketScape also identified three service providers -- Sprint, tw telecom, and XO -- as Contenders in the U.S. enterprise telecommunications services market. IDC found that all three companies possess adequate capabilities for market success but face various strategic challenges moving forward.

"Enterprises in the United States have many options when it comes to choosing a telecommunications service provider," said Courtney Munroe, group vice president for Worldwide Telecommunications. "IDC MarketScape was created to help each enterprise to make the best possible choice based on its own needs. While the overall scores reflect IDC's analysis of the relative strengths of each company, selection of a service provider should also take into account factors such as whether that carrier meets the enterprise criteria for network coverage, specific capabilities, and customer care performance."

About IDC MarketScape
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.


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