The Protocol - March 2002

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Survey Results:
Telecom Companies Reveal Valuable Insight Into the State of the Industry

In a recent industry-wide survey conducted by DPS Telecom, companies were asked a series of questions on a variety of topics pertaining to today's telecommunications industry.

The results produced some staggering information and some valuable insight into the state of the industry.

What is the biggest challenge facing the Telecom industry today?
Reader Survey
A. reliability and uptime
B. government regulations
C. staying current with technology
D. other

There are many significant issues facing companies today, but when asked what was the single biggest challenge facing the Telecom industry, nearly half of the surveyed companies responded that reliability and uptime was their greatest challenge. This coming at a time when companies are pitching reliable service and uptime to prospective customers. Yet despite the recent growth of the industry, and the certainty of continued growth, customer churn rates are continually increasing.

Over the last year, companies reported that almost one quarter of customer churn was due to poor network reliability. And even more disturbing, 57% of respondents reported that equipment failure was the number one cause of network outages.

This means that companies are losing, or have the potential to lose, 25% of their customers because of equipment failures that caused network outages.

Downtime can cost companies tens of thousands of dollars per minute while leaving them with a damaged reputation. But this is only the immediate impact. Almost one third of the companies surveyed reported that more than half of their clients have Service Level Agreements (SLAs) in place. These SLAs can cost millions of dollars to companies who fail to meet their minimum service level agreements with their customers.

The key to retaining customers, avoiding SLA fines, and maintaining maximum uptime in order to sustain a profitable business, is a reliable network. An adequate monitoring system can prevent network outages due to equipment failure, human error, and natural disasters, thus keeping a network profitable by providing maximum visibility. Remember, it is far more expensive to have an outage than to prevent one.

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