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Business Network Services - U.S.
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Business Network Services - U.S.
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Companies Competing in the Market
(Guide to all Company Ratings)
Company Current Perspective Vision
AT&T Positive Positive
Broadview Networks Neutral/Positive Neutral/Positive
BT Americas Neutral/Positive Neutral/Positive
Cavalier Telephone Neutral/Positive Neutral/Positive
Cbeyond Neutral/Positive Neutral/Positive
CenturyTel Neutral/Positive Neutral/Positive
Charter Business Negative/Neutral Neutral/Positive
Citizens Communications Neutral/Positive Neutral/Positive
Comcast Business Communications Neutral/Positive Neutral/Positive
Covad Neutral Neutral/Positive
Cox Business Services Positive Positive
Deltacom Neutral Neutral
Embarq Neutral/Positive Positive
Eschelon Neutral/Positive Neutral
Global Crossing Positive Positive
Granite Telecommunications Neutral Neutral
Hughes Network Services Neutral/Positive Neutral/Positive
Level 3 Neutral Neutral
McLeodUSA Negative Negative/Neutral
New Edge Networks/EarthLink Business Solutions Neutral/Positive Positive
NTT America Neutral/Positive Neutral
NuVox Neutral/Positive Neutral/Positive
One Communications Neutral/Positive Neutral/Positive
Optimum Lightpath Positive Positive
Orange Business Services Neutral/Positive Neutral/Positive
PAETEC Neutral/Positive Neutral/Positive
Qwest Neutral/Positive Neutral/Positive
Sprint Nextel Neutral/Positive Positive
TelePacific Communications Neutral/Positive Positive
Time Warner Cable Business Services Neutral/Positive Neutral/Positive
Time Warner Telecom Neutral/Positive Neutral/Positive
Verizon Positive Positive
Windstream Communications Neutral/Positive Neutral
XO Neutral Neutral/Positive
Company Advisor Report Excerpt
(List of available reports)
Company
Report Updated
Qwest 6/20/2008
Company Strengths and Weaknesses
Excerpt from Company Strengths
• Qwest owns its nationwide transmission network right down to the fiber. What's more, Qwest in February 2007 received forbearance from the FCC permitting the carrier to operate in-region local and long haul services in bundled packages and even using the same equipment, all without adding burdensome regulatory obligations to the in-region long-haul portion of the service.
Excerpt from Company Weaknesses
• Qwest's 14-state Rocky Mountain and northwestern U.S. service territory is the largest geographically, but the smallest in population, among the three major incumbent local carriers. Qwest does not serve huge, densely populated regions that compare to those in the Northeast and mid-Atlantic U.S. or California.
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. Available Company Advisors 

AT&T
AT&T is making a billion-dollar commitment to global enterprise-focused services in 2008. The carrier's plans to extend network reach, globalize business services and develop new services should pay dividends by capturing more enterprise spend. (5/5/2008)

 Price: $495

BT Americas
BT continues putting pieces into place, most recently with its acquisition of U.S. video and telepresence provider Wire One. The carrier's successes are often led by its taking on integration and outsourcing projects for its customers. (6/16/2008)

 Price: $495

Cavalier Telephone
Cavalier has expanded its reach and service portfolio through acquisition and technology deployments such as mid- band Ethernet. These enhancements offer potential revenue growth, but, the carrier may face increased costs for access services. (5/14/2008)

Cbeyond
By specializing in a core product line in select major metros, Cbeyond has managed to avoid the common CLEC danger of spreading itself too thin. Churn remains low, profitability is rising, and the company continues to grow customers and revenues. (6/22/2007)

 Price: $495

Citizens Communications
Citizens Communications increased its footprint in 2007 through its acquisition of two smaller carriers, but the gain in revenues and coverage may not be enough to offset access line loss, declining USF subsidies, and increased cable competition. (5/28/2008)

 Price: $495

Comcast Business Communications
Comcast Business Communications (CBC) has increased its business sales and support teams and launched Business Class Digital Voice. The initial service offer is limited in features and lines, but CBC plans to expand the service in 2008. (3/11/2008)

 Price: $495

Covad
Covad is on track to be acquired by Platinum Equity by 2Q 2008. Once private, Covad will no longer feel the pressure of public equity markets, but may it experience another kind of pressure from the new owners to improve operational performance. (3/21/2008)

 Price: $495

Cox Business Services
Cox Business reaches more than 200,000 business customers. Its initiatives to connect optical networks, promote carrier Ethernet services and provide T1-like voice/data integrated access portend the company's continued success. (4/22/2008)

 Price: $495

Deltacom
Deltacom emerged from its 2007 recapitalization in better shape to tackle the market profitably. Slow but sure adjustments in the carrier's financial picture and service portfolio enhancements have steadied the regional CLEC. (6/10/2008)

 Price: $495

Embarq
Despite losing more than 7% of its access lines over the past year, Embarq’s business services continue their slow but steady growth, due in part to strong demand for DSL services. (5/20/2008)

 Price: $495

Eschelon
Eschelon Telecom, a CLEC operating in nine western states, has agreed to be acquired by Integra Telecom of Portland, Oregon, for $710 million. The merger is expected to be completed by the end of August. (8/10/2007)

 Price: $495

Global Crossing
Global Crossing continues to replace low-margin wholesale voice revenue with services offering greater rewards. Global Crossing's 2008 plans include VoIP, Ethernet, IP VPN and customer enhancements to ensure its portfolio stays up to par. (4/15/2008)

 Price: $495

Level 3
Level 3 struggled with integration issues last year that reduced its ability to turn up services while service quality degraded. Following a management shake-up, the carrier is totally focused on getting back on track by the second half of 2008. (4/17/2008)

 Price: $495

McLeodUSA
On September 17, 2007, it was announced that McLeodUSA had agreed to be acquired by PAETEC in a transaction valued at $557 million. The combined company would, by some measures, become the largest business-focused CLEC in the U.S. (11/14/2007)

 Price: $495

New Edge Networks/Earthlink Business Solutions
EarthLink's 2007 consumer-side cuts have led the overall company to improved financials so far in 2008. New Edge Networks' rollout of nationwide IP/MPLS class of service support over ADSL opens up additional major new opportunities. (5/13/2008)

 Price: $495

NuVox
Nuvox acquired fellow carrier FDN Communications in 2007 and has since fully integrated the business into its own; the carrier has been mining opportunities to build up value- added features applicable across its customer base. (6/12/2008)

 Price: $495

One Communications
One Communications has rationalized its product set and launched new services across its footprint. The carrier faces competition from RBOCs and cable operators and its ability to retain a strong customer service focus will be key to its success. (6/9/2008)

 Price: $495

Optimum Lightpath
Optimum Lightpath, the business services arm of Cablevision, offers alternatives to RBOC legacy services in the New York metro market. Lightpath has an enviable fiber reach, but its lack of nationwide coverage is a limiting factor. (4/24/2007)

 Price: $495

Orange Business Services
Global service provider Orange Business Services continues to develop its services and partnerships. Most recently, the carrier achieved global partner status with Cisco, and launched new managed security features off the vendor's routers. (3/20/2008)

 Price: $495

PAETEC
In February 2008, PAETEC completed its acquisition of McLeodUSA, and became a truly national competitive service provider. The company has wasted no time in starting to consolidate corporate branding and services under PAETEC. (6/10/2008)

 Price: $495

Qwest
While Qwest's core voice business continues to trend downward, strong data growth propelled business revenues into positive territory, as Qwest's Internet and iQ Networking products offset the decline of legacy services. (6/20/2008)

 Price: $495

Sprint Nextel
Sprint’s wireline business has been declining for several years, but that trend appeared to bottom out in 2007 as IP/MPLS services grew by double digits. Meanwhile, new CEO Dan Hesse has yet to make a decision regarding WiMAX strategy for 2008. (4/1/2008)

 Price: $495

TelePacific Communications
Following its acquisition of Mpower, TelePacific has become one of the top-tier competitive carriers on the West Coast. However, the merger of Eschelon and Integra has created a comparably sized regional CLEC based in the Northwest. (3/4/2008)

 Price: $495

Time Warner Cable Business Services
Time Warner Cable now offers business customers a triple play of Business Class Phone, Internet and Video. Business Class phone offers a basic feature set, but lacks the calling features that come with a converged IP environment. (3/4/2008)

 Price: $495

Time Warner Telecom
Time Warner Telecom, soon to be known as “tw telecom,” is well on its way to completing its integration of Xspedius this year, but the impending name change will require a multi-million dollar rebranding campaign. (5/19/008)

 Price: $495

Verizon
Verizon Business’ vast collection of assets makes it a top choice for businesses of all sizes. Verizon’s network improvements enable the carrier to support today’s services and prepare the carrier to meet tomorrow’s communications needs. (5/6/2008)

 Price: $495

Windstream Communications
Windstream has completed its first full year of operation with modest but positive growth. It carries a substantial debt load and faces increasing competition from cable operators in the business services market. (3/5/2008)

 Price: $495

XO
XO has strengthened its IP services portfolio with new pricing and service options. The carrier’s ongoing network enhancement efforts and the addition of mobility services will maintain the momentum of XO IP Flex in the enterprise market. (4/8/2008)

 Price: $495


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. Company Advisor Report Contents
  • Sections
    • -Company Description
    • -Current Perspective
    • -Company Market/Sales Strategy
    • -Company Strength
    • -Company Weaknesses
    • -Recommended Competitor Action
    • -Recommended End User/Customer Actions

    Page count: 5-6 pages

  • Publication date: See date at end of summary.
          Reports are updated three times a year

  • Description of Sections
  • Company Description
    • Up-to-date look at what markets the company competes in and what it brings to those markets. Coverage includes: main product lines, important partnerships, key clients, recent sales wins.
  • Current Perspective
    • Our analysts give their assessment on whether or not the company has the technology, products & services and management team needed to compete in its markets.
  • Company Market/Sales Strategy
    • What are the company’s value proposition and key differentiators. How it positions itself in the market, and against its competitors. And what are its target audiences.
  • Company Strengths & Weaknesses
    • Unique tactical competitive analysis based on the specific tactics that a company is using, and in-depth analysis of its products and capabilities
  • Recommended Competitor Actions
    • Who are the company's main competitors, and what actions we can expect from each competitor or the market at large.
  • Recommended End User/Customer Actions
    • How customers (either end users or purchasers of this product for resale/bundling) should view the company. Should customers consider purchasing products/services from this company? What specific actions or questions should the customer pursue during negotiation phase?

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. Guide to Company Ratings

Current Perspective

Overall company assessment relative to competitors across all markets in which they compete.

Very Positive: Company has strong position now, or on way to certain success if continue to execute as planned. Leader in multiple areas (e.g., product quality, market share, distribution channels, lower cost)
Positive: Positive opinion on firm, technology, products/services and/or management team. Well-positioned now and could be strong competitor in the near future.
Neutral: No strong opinions regarding the company. Can occupy niche or segment that is relatively stable.
Negative: Losing ground in multiple areas, must take corrective actions immediately in order to prevent total failure (e.g., bankruptcy).
Very Negative: Decreasing sales, slipping market share, delayed product or services cycles. Can’t overcome current problems within the next 12 months.
Status

Relative position of the company against its competitors.

Mature: In business long enough to have legacy product/ service base, and stable customer base.
Established: Stable product and/or service base – and stable customer base – can survive market turmoil.
Emerging: Delivering actual product but still a relatively small player in the market.
Startup: Pre-product or service.
Momentum

General direction of the company relative to others in the industry.

Very Positive: Quickly establishing a market-leading position in both sales and industry-buzz.
Positive: Gaining market share, gaining positive perception among market watchers (investors, customers).
Neutral: Holding steady, no real gain or decline in market movement.
Negative: Beginning to lose market share and market leadership (perceived or actual).
Very Negative: Steep decline in market share or industry leadership (perceived or actual).
Future Vision

How well the company understands the direction of the market, including customer requirements, business and social changes and innovation.

Very Positive: When company talks, market listens carefully. Offers innovations consistently and management team respected for ability to shape markets.
Positive: Clearly communicates overall vision and plans for the market, occasionally offers ground-breaking direction to the overall market.
Neutral: Neither market leader nor follower, company’s communication of vision is uninspiring.
Negative: Poor communication and/or execution of strategic vision. Changes “vision story” frequently, appears indecisive on how to approach market(s).
Very Negative: Consistently follows the market leaders, fails to communicate strategic vision, very little understanding of customer and market requirements.

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