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Survey quantifies continued unprecedented uncertainty in telcoms market


One fifth of network managers anticipate changing their service provider over the next year owing to fears over service continuity, according to independent research released today by Vanco, a global network service provider. The survey suggests that the turbulence experienced over the past year is set to continue into 2003. Vanco urged network managers to investigate the flexible sourcing strategies recommended by such industry bodies as Gartner Group in order to insulate themselves from the traumas of switching suppliers at short notice - one of the most troublesome operations an organisation can undertake.

Allen Timpany, CEO of Vanco, said, This level of uncertainty is unprecedented: that so many organisations are facing up to the costs and upheaval of switching suppliers owing to service continuity fears underlines the market's lack of confidence in the ability of carriers to continue to serve their customers. It's clear that the carriers are not yet out of the woods and that the present disruption is going to continue at least through next year.

The survey was conducted on behalf of Vanco in November of this year by research specialists Vanson Bourne who interviewed 100 telecommunications managers in companies with more than £50m turnover (of which 50% were in companies with more than £250m turnover). Twenty per cent of respondents indicated that they would or were likely to change service provider due to service continuity fears over the next year.

Timpany continued, The spectacular collapse of WorldCom, Global Crossing and KPN Quest and the recent massive losses disclosed by Cable and Wireless indicate that there are no safe harbours left among the world's telecommunications infrastructure providers. The only recourse left to network managers is to spread the risk by adopting flexible a sourcing strategy. They can either contract directly with multiple service providers - a complex, expensive and resource-intensive proposition - or work with a managed services provider to mask that complexity for them. Either way, putting your business networks into the hands of a single infrastructure provider is now not a risk worth taking.

NOTES TO EDITOR

About Vanco

Vanco plc (FTSE: VAN) is a global network service provider. Vanco is now operating networks for customers in 40 countries globally including FT Interactive Data, Virgin Retail, Ford Motor Company, Pilkington, Tibbett & Britten and Smith & Nephew.

In a complex, dynamic and de-regulated telecoms market, Vanco provides its customers with clear impartial advice and least risk. Independence from carriers means it can take advantage of greater flexibility, increased choice and improving technology to deliver cost-effective, highly customised and value-added solutions.

Vanco has won numerous awards recognising its financial success and industry leading customer service. In a recent independent market research study Vancos customer service was rated as the best in the network industry (Rhetorik 2002). Vanco was the only company to list on the main market of the London Stock Exchange in Q4 2001.

CONTACTS:

Iain Frazer-Halpin

Senior Consultant

Brodeur Worldwide

Ifrazer-halpin@uk.brodeur.com


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Fax: +44 1753 790701

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