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China market offers service providers significant Blended Services opportunity


Recent market research from Alcatel-Lucent (Euronext Paris and NYSE: ALU) shows that consumers and enterprises in China have a strong interest in services that allow the simultaneous interplay of voice, video, data and multimedia applications. Moreover, Chinese enterprises and consumers surveyed indicate that they are willing to pay a premium for these “blended” services.

The research was commissioned by Alcatel-Lucent’s User-Centric Experience program and was conducted by an independent market research firm. The detailed analysis is based on the results obtained from web-based surveys conducted with more than 400 enterprise managers and decision-makers and more than 1500 consumers in China. Alcatel-Lucent’s understanding of the user centric experience can be leveraged by China’s service providers to identify new and significant revenue opportunities.

The Alcatel-Lucent study identified the “Sweet Spot” as the segment where customers are most interested in blended services and most willing to pay an additional fee to obtain the services.

The study produced several significant results:

Enterprise “Sweet Spot” Identified

The enterprise information technology managers and decision-makers were significantly interested in blended services (8.2 on a 10-point scale). 84 percent of the respondents were willing to pay a premium, ranging from 38 percent to 80 percent above current spending, to obtain their current service mix in a blended package.The Alcatel-Lucent study further concluded that enterprise customers most interested in blended services are more likely to work in large enterprises with multiple locations. This “sweet spot” segment represents an attractive opportunity for selling blended services into Chinese enterprises.,
Features most attractive to those in the enterprise sweet spot segment included:

VoIP Solutions for Enterprise
SMS Callback Manager
Wireless Office
Consumer “Sweet Spot” indicates strong interest
More than 66 percent of Chinese consumer adults and 75 percent of consumer parents surveyed indicated a significant interest in blended services with overall interest at 8.2 on a 10-point scale for adults and 8.3 for parents. Nearly half of the respondents were willing to pay additional fees to obtain those services. Alcatel-Lucent’s research also indicated that those in the consumer “sweet spot” are predominantly male, over 25 years old, married and from higher income households as well as those with children.
Features preferred most by the consumer sweet spot segment include:

Interactive Internet TV
Dual Mode Phone
SMS Missed Call and Call Back Manager
“The in-depth briefings we will be providing on the results of Alcatel-Lucent’s User-Centric Experience primary market research will undoubtedly attract the attention of our service provider customers in China because it provides them with the market-based information they need to grow their business,” said Frederic Rose, President, Alcatel Shanghai Bell and President of Alcatel-Lucent Asia Pacific. “The research shows clearly that China is a market with tremendous potential demand for blended services.”

The survey results are in no way a predictor of the company’s future performance, and are meant only to identify potential market opportunities and estimates for the communications industry at large.


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