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Ovum Study Slams Failure of Wholesale Telecoms Suppliers to Deliver Quality

Posted: 17th Oct, 2011 By: MarkJ
uk telecoms moneyuk telecomsLondon-based Ovum, a UK technology and telecoms analyst firm, has warned that the performance and quality of wholesale telecoms suppliers is "deteriorating" in many of the areas that customers care about and improving in all of the wrong places.

Many broadband ISPs are dependent upon wholesale suppliers for bandwidth (capacity) and other services. Sadly Ovum's latest Wholesale Customer Survey 2011 report suggests that shrinking price gaps (i.e. between wholesale and retail), too wide a range of products and falling service quality could be damaging the market.

David James, Ovum Principal Analyst, said:

"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."

The UK telecoms market is particularly aggressive and the report notes that ISP and phone operators are "losing business due to increased retail competition", which in fairness usually means that somebody somewhere else will be able to benefit.

Ovum's report recommends that wholesalers start listening to their customers and responding to their priorities, which must include being able to comprehend current retail trends and pressures that are driving their customers.
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