London-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.


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.