BT Secures LogicaCMG Outsourcing and Go to Market Deal

On September 14th BT signed a network services contract with IT services provider LogicaCMG. Under the terms of the agreement, BT will manage LogicaCMG's voice, data, LAN and mobile network infrastructure both for internal use and also to support the provision of networking services to both new and existing LogicaCMG customers. With roll-out beginning in the UK, the seven-year deal will be extended to cover additional key LogicaCMG geographies in the future.

Recommended Competitive Responses

► Competitors can study BT´s strategy to drive sell-to network outsourcing deals with system integrators and on the back of that a go to market partnership to deliver the network services part of their customer outsourcing deals. Instead of making a large scale IT services acquisition that would be difficult to integrate, BT has complemented this strategy by making over 20 targeted acquisitions for skills or scale in a particular market e.g. Counterpane, INS (US), CS (France) etc.

► Competitors should look to partner more formally with other system integrators along the lines of BT´s deals with LogicaCMG and HP where BT is aggressive on outsourcing and takes over their internal network infrastructure – presumably at a very attractive price. In return BT gets to drive revenues for managed network services from their customer base with the message that BT and HP do for customers what they do for each other. This is a proven concept – BT and HP have generated $1.5 billion in contracts with 41 customers worldwide.

| Client Access - Business Telecom Services - Europe |

Easynet Joins the Global VNO Club in Virtela Deal

On September 10th Easynet selected Virtela for a global network reach partnership that extends its managed services reach to 194 countries. Easynet currently has customers in more than 45 countries and operations in nine countries. Virtela does not own any core infrastructure but puts edge router equipment in Regional Policy Centers (RPC) or data centres. These RPCs in turn form the foundation of Virtela´s multi-carrier Service Fabric of more than 250 network providers worldwide.

Recommended Competitive Responses

► Competitors can position Easynet as a pan-European network operator that focuses more on medium and large enterprises with HQ operations in Europe and some manufacturing, distribution or offshoring activities in a handful of other countries rather than blue-chip MNCs that truly have global networking requirements.

► BT can point to its MPLS network reach in over 100 countries, its 8,000-strong professional services staff but also its canny acquisition strategy to enhance and enlarge its presence, expertise and service capability both regionally and globally.

► Orange Business Services can highlight that its global MPLS IP VPN service extends to a competitive 149 countries worldwide (45 in Europe) and is supported by five CoS.

► Verizon Business can promote that ‘Private IP,’ its fast-growing MPLS-based IP VPN service is available in 121 countries and territories worldwide and that Verizon Business is also moving into a leading position in international VoIP services, an area that Easynet is especially weak on.

| Client Access - Buisness Telecom Services - Europe |

Verizon Business Launches Its Customer Centre Portal in Asia for Global Presence

On September 19th Verizon Business expanded the global availability of its Customer Centre portal to customers based in Asia-Pacific, providing an integrated, personalized view of their network services. The Customer Centre is a key component of the company’s ongoing enhancements to its customer-enablement capabilities. The portal complements Verizon Business’ extensive local and global service and support capabilities, expanding customer service flexibility and choice.

Recommended Competitive Responses

► AT&T should point to the break in Verizon Business’ service deployment logic when services are rolled out before customer portal support is available. AT&T should emphasize that its global services are not deployed before they are supported on the AT&T Business Direct customer portal worldwide.

► BT must spend a lot more marketing effort to explain the advantages of its emerging My Account customer portal, which trails market leaders in level of integration, graphic capabilities and local support. BT needs avail itself of its own analytical capabilities to identify the key services to provide boosted support for customers in the Asian market.

► Orange Business Services’ WebVision portal is more complex to use than the revamped Verizon Business VBCC. Consequently, Orange needs to invest more time and marketing effort to induce customers to use the full potential of WebVision.

| Client Access - Telecom Services - Asia |