Technology Spending Tilts Toward Telecom - Industry Trend or Event

Cambridge Telcom Report, June 5, 2000

Signifying the increasing importance of telecommunication networks, telecom/network professionals this year will spend more than 10 times the amount of money than their counterparts who work in traditional computer technology, according to a just-released survey by Reality Research & Consulting.

Telecom/network professionals each will spend an average $7.1 million this year on technology equipment compared to the $729,000 that the average information technology (IT) professional will spend. The spending figures for telecom/network professionals are based on a global survey of 2,406 executives and managers who work in the telecom/network market.

Global providers such as AT&T, MCI WorldCom, and Sprint will be the leading beneficiaries of this spending by telecom/network professionals, said John DiStefano, manager of Internet Panels at Reality Research, a leading market research and analysis firm. "Those three brands are the most frequently purchased by telecom/network professionals," explained DiStefano.

The 2,406 respondents in the survey represent executive and managerial personnel at a range of telecommunications and network companies, such as Internet Service Providers (ISPs), Competitive Local Exchange Carriers (CLECs), Wireless Cellular Providers and others. The respondents are participants in Reality's Telecom/Network Panel and the survey is the first of its kind to profile demographics in the global telecom/network service market. Reality employed its Rapid Online Automated Response (ROAR) system to collect the survey data.

"The respondents in this survey represent influential telecom/network companies such as Williams Communications Group, Concentric Network, SBC Communications, and PSINet," said DiStefano.

Additional findings showed that T1 equipment and software is the most dominant technology deployed by telecom/network professionals. Nearly two- thirds of the respondents (62 percent) report involvement with T1 technologies. The survey also found that the most common high-speed data delivery is IP over ATM.

Reality Research & Consulting is the leading research firm focused on issues concerning information technology sales channels, service providers and branding. It provides strategic intelligence and advice to manufacturers and resellers of IT products and services. Reality has conducted research for major technology companies, including AT&T, Hewlett-Packard, IBM, Intel, Microsoft and Oracle, as well as ad agencies and media consultants.

The Internet-based ROAR system shrinks standard research timelines by using a pre-qualified database of more than 2,500 service providers for customized, targeted surveys. The ROAR Telecom/Network Panel can be used to conduct studies on a range of topics including: market share, product development, marketing effectiveness, customer satisfaction, and industry profiles.

Reality Research is an independent business unit of CMP Media Inc. It is located in Jericho, NY.