Companies are faced with increasing pressures on the communications capabilities they offer their employees. More employees are mobile, working from home or in other remote locations with a growing need to talk and share information with their colleagues. This cuts across fixed and mobile communications, but businesses still want the flexibility of mobile, and the costs, predictability, quality and service models of fixed.
QUOCIRCA INSIGHT REPORT August 2007 Convergence or confusion? Contacts: The challenge of telecoms service provision Rob Bamforth Companies are faced with increasing pressures on the communications capabilities they offer Quocirca Ltd their employees. More employees are mobile, working from home or in other remote Tel +44 7802 175796 locations with a growing need to talk and share information with their colleagues. This cuts rob.bamforth@quocirca.com across fixed and mobile communications, but businesses still want the flexibility of mobile, Clive Longbottom and the costs, predictability, quality and service models of fixed. The convergence of the Quocirca Ltd technologies involved is creating a collision of service provider business issues and a Tel +44 118 9483360 confusion of alternatives for customers. This report seeks to draw out some of the important clive.longbottom@quocirca.com questions businesses need to address with their communication services providers. Mark Freer O2 . Mobile is becoming more strategic in the IT mix Tel +44 7843 510858 While the cost associated with mobile deployment is still the most significant factor in negotiations mark.freer@o2.com with mobile operators, companies continue to see their mobile spend growing and for more than two in five companies this is a planned increase in their mobile budgets. . Centralised strategy, but decentralised tactics Despite a strategic imperative to consolidate and reduce supplier numbers, the reality is still driven RESEARCH NOTE: by getting the best local deal service by service. This applies across technologies, such as fixed The primary research data and mobile, as well as international boundaries. Although there are plenty of alternative upon which this report is communications suppliers, most organisations still expect incumbent fixed or mobile telecomm based is derived from an companies to play the major role. independent study conducted by Quocirca and sponsored by O2. This . Home broadband extends home working - but not under the control of the office involved 600 interviews of The availability of cheaper, high performance home broadband across Europe has had a significant those with responsibility effect on consumer internet adoption, with consequent potentially easier home access to the office. for or active involvement in A quarter of companies take control, providing and paying for employees' connections, but most managing their piggyback off a regular consumer service, some contributing someway to the cost. organisation's relationship with mobile operators from . Back to cellular as the Wi-Fi wave slows a broad cross section of industries in the Germany The lower, flat rate cost appeal of Wi-Fi has to be tempered by availability of service. As mobile France, Spain, the working continues to grow, outside the range of Wi-Fi campuses, controlled sites or 'wireless Netherlands, Belgium, cities', the connection has to be cellular. Price of mobile data is still an issue, but dropping in Czech Republic and Italy, significance as cellular data tariffs become more reasonable, increasingly now offering flat rates. with a larger group from the UK. . Fixed/mobile convergence is making some progress The perceived benefits of cost reduction and simpler supplier relationships are tempered with the Approximately 53% of the need to make a decision about alternative technologies or solutions. While many companies are respondents were from ?1 billion plus turnover already actively involved with fixed/mobile convergence, there has not been a significant increase Enterprises with the year on year, indicating some reluctance to place technology bets too early. remainder in the ?100m to ?1 billion range. Other . Businesses look for service on top of connectivity, beyond the 'bit pipe' sources of data are In addition to simplifying some of the connectivity choices, companies still have an appetite for highlighted where they are services that add value to their business, rather than just plain connectivity. However some used. disillusionment has changed their view of mobile operators, who now appear to occupy a less This study picked up strategic role. substantially from similar surveys run over the last Concl... [download for more]
