October 1, 2008

Yankee Group Releases Anywhere Network Scorecard Ranking of Communications Service Providers

At the WiMAX World 2008 Conference and Expo, Yankee Group released its Anywhere Network Scorecard: Communications Service Providers report, which explores the progress communications service providers have made to date in transforming their businesses to profit from the global Anywhere Network(TM). The Anywhere Network is Yankee Group's vision of a seamless, intelligent, ubiquitous network with broadband capacity, which delivers a connection for everyone to everything that can benefit. This latest Yankee Group report points out that many service providers are seeing erosion in their capital value and advises them to transform their businesses to gain a sustainable market position.

The report scores AT&T, Verizon, Sprint, Orange/FT, British Telecom, Telstra and NTT based along six dimensions: core and transmission network economics; organizational alignment; business and operational systems alignment; financial position and addressable market scale; ecosystem and service distribution wealth; and access network performance.

"It is clear that service providers must transform as the Anywhere Network takes hold," said Philip Marshall, Ph.D., Yankee Group senior research fellow and technology strategist. "We see a great deal of transformational initiatives under way, but most continue to struggle to break the shackles of traditional telecom business models."

Among the report's conclusions:

-- Verizon is leading the pack in terms of its core network evolution but must address IT and organizational transformation shortfalls. To benefit from its efforts in driving ecosystem initiatives such as the Open Device Initiative, it must drive an organizational structure that breaks traditional product silos. Its IT transformation must focus more on custom-off-the-shelf as opposed to homegrown platforms.

-- AT&T is well positioned in its core network, but must accelerate its broadband and mobile access network evolution to compete with Verizon.

-- Sprint has been innovative in its ecosystem development, but must address shortcomings in its customer care and traditional business operations before driving mass-market transformation.

-- Orange/FT is relatively well positioned in terms of its core and access network, has been innovative in its ecosystem development, but must address shortcomings in its organizational structure and IT transformation. Orange's efforts in bringing LiveBox to market demonstrate an emphasis towards driving a broad ecosystem. However it still remains unclear how Orange can ensure it is the beneficiary of its efforts, as other players such as Cisco/Linksys bring solutions to market.

-- British Telecom (BT) is aggressively transforming its core network and developing its service abstraction, but must address the shortcomings of its strategy in maintaining control over its channel, particularly with the lack of mobile service and inferior broadband access network capabilities. As BT faces these challenges it must continue to drive a structured approach to its service exposure strategy. We believe this approach will lead to distinct strategies for best-of-breed, and short and long tail services and applications.

-- Telstra leads in its transformation initiatives but must pay greater attention to developing its ecosystem wealth.

-- NTT is advanced in its network and ecosystem transformation but must address shortcomings in its organizational alignment.

About Yankee Group

The people of Yankee Group are the global connectivity experts(TM)--the leading source of insight and counsel trusted by builders, operators and users of connectivity solutions for nearly 40 years. We are uniquely focused on the evolution of Anywhere, and chart the pace of technology change and its effect on networks, consumers and enterprises. Headquartered in Boston, Yankee Group has a global presence including operations in North America, Europe, the Middle East, Africa, Latin America and Asia-Pacific. For more information, visit http://www.yankeegroup.com/.