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Carriers Perceive Teleglobe As Top Competitor In Wholesale Voice; Mci Truly Global; Colt As Leader In Wholesale Data


London, November 8th 2005 - The annual survey of wholesale telecommunication businesses conducted by consultancy BroadGroup has revealed that carriers perceive Teleglobe as the leading competitor in wholesale voice, and that a similar accolade is accorded to COLT in wholesale data. COLT has achieved this status for the second year running, even though its activities are focused on the European region.

The survey, Wholesale 2005, is based on a survey of selected international wholesale carriers conducted in Europe, North America, Asia-Pacific and Latin America. The report represents the third in an annual series, and includes an analysis of carrier perceptions of their key competitors from which the rankings are derived.

ITXC is critical to the ranking of Teleglobe (acquired by VSNL) and in combination places the carrier as the number one voice competitor, as viewed by its peers. Belgacom who appeared first in voice wholesale last year, now ranks behind MCI who were identified by respondents from all geographic regions as truly global, and the most competitive wholesale voice carrier.

In data, Level (3) Communications and Cable & Wireless, who are viewed as highly competitive and collectively operate across multiple geographies, were second and third respectively.

Although the total international wholesale market dollar value increased by only 4% between 2003 and 2004, strikingly the report found that the mobile premium now equates to more than 40% of all revenues.

The report found that in contrast to previous years, operators believe revenue growth will now not occur outside the norm, which increases the focus on other growth vehicles including mergers, acquisitions and strategic collaboration. Evidence also suggests that some carriers are significantly extending their points of presence to consolidate aggregator margins, although analysis of the business model casts doubt on the sustainability of this strategy,

Price declines appear set to continue but with some amelioration in the speed and percentage rate. In contrast to other regions, high voice and data volume growth is forecast for the Asia Pacific region.

The report found that the world market in international wholesale data has not yet stabilised, and continues to be highly competitive with low barriers to entry for IP Transit; a re-think of the wholesale data model could emerge.


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