Tuesday, October 18th, 2011 - OVUM
Melbourne - Wholesale telecoms suppliers are failing to deliver excellence in products and services for their customers, impacting their ability to tackle the effects of intense competition, according to Ovum.

In a new report*, the independent telecoms analyst unveils the findings of its latest wholesale customer survey, which highlights this worrying trend in the market.

The report states that the performance of wholesale suppliers is deteriorating in many of the areas that are most important to customers, and improving in the areas they care about the least.

David James, Ovum Principal Analyst and author of the report, commented: “A major finding of our research is that wholesalers need to listen to their customers and this has never been more important than it is now.

“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 also getting it wrong by offering too wide a wide range of products. A clear conclusion from our survey is that customers want specialist suppliers with in-depth offerings, not generalists with broad portfolios.”

According to the report, intermediary customers feel aggrieved about the shrinking price gap between wholesale prices and what they can expect to achieve in the retail market, which impacts their ability to be competitive. Ovum’s research found this area is one of the most crucial for customers, so it is worrying that wholesalers are not delivering.

Worse still 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 enable them to become the supplier their customers need, and succeed in this competitive market. These include listening to their customers and responding to their priorities, and understanding the retail trends and pressures that are driving their customers.

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.”



*Wholesale Customer Survey 2011

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Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is part of the Informa Group.
Delphine Jersier
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