Yankee Group Issues Rankings of Top Wholesale Data Providers; BellSouth, Sprint lead overall quality; MCI rated best in network performance

Business Wire, Jan 4, 2006

BOSTON -- Yankee Group announced today that Sprint and BellSouth have been chosen as leaders in overall quality among their wholesale provider competitors, according to the recently released Yankee Group 2005 US Wholesale Data Services Survey and supporting report, Sprint, BellSouth Lead Wholesale Providers in Overall Quality. Wholesale customers also rated Sprint as the technical-expertise superior, while MCI was heralded by users as the leader in network performance. After price, network performance proved the most important criterion to wholesale buyers when selecting a data service provider and the service differentiator, which most buyers would consider paying a value premium.

Key findings of the survey include:

--Only 68% of wholesale buyers ranked providers' technical expertise as somewhat good or very good regardless of wholesale offering breadth.

--Voicing an industry-wide satisfaction with wholesale quality, 74% of wholesale buyers rank their providers' overall quality as somewhat good or very good.

--A close and crowded mid-tier places MCI, WilTel, AT&T, Level 3, Verizon, Global Crossing and SBC in a good position to rise to the top.

The Yankee Group 2005 US Wholesale Data Services Survey, which polled more than 140 wholesale buyers from a wide variety of buying segments, including RBOCs, ILECs, IXCs, CLECs, ISPs, wireless carriers, cable MSOs, systems integrators and resellers, examines how buyers evaluate and acquire wholesale data services. The 2005 survey, which examines four distinct categories--overall quality, network performance, technical expertise and account management--surpasses the 2004 survey in that it uncovers not only buyers' perception of leadership, but actual customer experience.

"With many players offering near-identical price offerings, differentiation has become very difficult for providers in the wholesale data services market," said John Romagnoli, Yankee Group, senior analyst, Wholesale Communications Strategies. "Customers are now looking to network performance and overall quality as the deciding factors for purchasing these services. This places wholesale providers in a good position to leverage positive buyer experiences and rankings in network performance when negotiating contracts and responding to RFPs."

In the recent report, Yankee Group analyzes the results of the 2005 survey by describing what the vendor rankings mean then offers market conclusions. For providers, Yankee Group recommends that those with low- to mid-tier rankings in overall quality and network performance must collect and utilize customer input and take action to make appropriate improvements. In addition, pricing should remain competitive, but providers with mid- to high-tier rankings in network performance should leverage their expertise to achieve higher prices and margins.

NOTE TO EDITORS

For interviews contact:

--John Romagnoli, Yankee Group, 617-880-0343, jromagnoli@yankeegroup.com

--Nathaniel Eberle, Racepoint Group, 781-487-4620, neberle@racepointgroup.com

--Elisa Roberts, Yankee Group, 617-880-0214, eroberts@yankeegroup.com

YANKEE GROUP (www.yankeegroup.com)

At Yankee Group, we help our clients succeed by providing the knowledge, tools and support they need to make winning decisions when business opportunities intersect with technology solutions. In business more than 35 years, Yankee Group knows the importance of listening to and understanding the needs of our clients. We deliver value through authoritative, innovative and flexible research products and consulting services. Whether challenges are rooted in planning, executing or optimizing the use of technology, Yankee Group's world-renowned analysts transform market intelligence and practical, real-world experience into valuable decision support. Headquartered in Boston, Yankee Group research and sales staffs are located around the world, including North America, Europe, the Middle East, Africa, Latin America and Asia-Pacific.