Cable & Wireless Puts NGN in Play in Europe

| Jul 2, 2009 | Business Telecom Services - Europe | Competitive Intelligence Report

| Analyst: Sandra O'Boyle

Current Perspective: Positive
Vendor Importance: High
Market Impact: High

Event Summary

June 30, 2009 -- Cable & Wireless (C&W) is expanding its MPLS-based network called the Multi-Service Platform (MSP) beyond the UK and into 21 locations in Europe, including Ireland, France, Germany, Spain, Italy, Netherlands, Austria, Belgium, Poland, Czech Republic, Sweden, Switzerland, Denmark, Russia, and Hungary. The deployment is scheduled to be complete by the end of September 2009. C&W’s MSP network is based on Alcatel Lucent’s 7750 service router and a Cisco IP backbone. The MSP has also been rolled out in the UK, Middle East and India.

Analytical Summary

• Current Perspective: Positive on Cable & Wireless as the operator has invested in its Multiservice platform (MSP), its next-generation MPLS network, and now has a presence across key markets in Europe. This will be backed up by sales support and should start to put C&W firmly back as a contender for European-based MNCs requiring global managed services.

• Vendor Importance: High to Cable & Wireless because it is making a bid to serve existing UK and Ireland customers better in Europe but also to reassert itself in the continental European and Russian markets for consideration by large enterprise, MNC, and carrier accounts.

• Market Impact: High on competitors in the managed network and IP services market in Europe because large enterprises and MNCs now have in C&W another global network operator to choose from with a presence in key European Russian and Far Eastern markets. This comes hot on the heels of Telefonica and NTT which both plan to expand their network and sales support in the region. This puts further pressure on BT, AT&T, Verizon Business, Orange Business Services, Tata, Reliance GlobalCom and others all competing for the same enterprise customers.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Business Telecom Services - Europe | More information

Recommended Competitor Actions

• Competitors can position this network expansion from Cable & Wireless as more of a B-end customer move – that is meeting existing customer needs for advanced IP services, such as Ryanair that have operations in Europe, rather than a serious play to win business from large enterprises and MNCs in national European markets.

• BT can position that it already has a strong European MPLS network with national networks in several countries (UK, Italy, Spain, Germany, Ireland and the Netherlands) and NNI and access agreements in many others. BT also can contrast its professional service capability in Europe to address complex outsourcing deals and a strong portfolio of managed services including AAI.

• AT&T has improved its local access and NNI capability and overall competitiveness in the European market and needs to work more on flexibility and innovative in the types of contracts and commercial terms it can offer customers on outsourcing deals.

• Orange Business Services can always highlight its overall global network reach but also the progress it has made in delivering its managed IP service portfolio and customer support experience consistently across all key markets, something competitors have struggled with.

• Telefonica needs to more actively promote its new Global MNC unit and its plans to establish a network and sales presence across Europe. This follows on from a successful win of the DHL deal in Europe and builds on its strong capability with large enterprises and MNCs in Spain and Latin America.

• Verizon Business can highlight that it has MPLS coverage across most of Europe and fiber networks in major European countries. Verizon Business can also position itself as a leader among the larger operators in terms of Ethernet services.

Recommended End User / Customer Actions

• UK customers of Cable & Wireless that may require IP VPN QoS and other advanced IP services such as TelePresence for sites in Europe should contact Cable & Wireless account managers for more details on the roll-out, apparently services based on the MSP platform will be available to customers in Europe from November 2009.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Business Telecom Services - Europe | More information

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