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Telecoms service providers could increase the size of their addressable market by up to $12 (£8.2) billion by 2006 if they were to collaborate in delivering SLA-based Wide Area Network (WAN) services across multiple carriers’ networks. This is the headline finding of new research conducted by Analysys and commissioned by Nexagent, a global leader in collaborative commerce for the telecommunications industry.

Analysys, leading telecoms consultancy specialists, have just published a White Paper on the market for SLA-based WANs. It forecasts that demand for SLA-based WANs will grow from $29 (£19.7) billion in 2003 to $52 (£36) billion in 2006. However, a large opportunity will go un-realised unless service providers can find an effective way of addressing the problem of provisioning multi-network, multi technology solutions that do not rely on the deployment of ubiquitous networks or on maintaining a large set of bi-lateral relationships with other operators.

The benefits for service providers of overcoming this problem include:

- Satisfying the demand of enterprises currently unable to purchase a full solution (due to the prohibitive costs of multi-network links), resulting in new revenues of $5 (£3.4) billion in 2006

- Re-directing enterprise spend of $3–4 (£2–2.7) billion from in-house network integration to service providers by 2006

- Encouraging a migration of enterprise spend of $3 (£2) billion in 2006 from legacy technologies (such as leased lines) to SLA-based WAN offerings

- Reducing the costs associated with custom network integration by $600 (£400) million in 2006.

Furthermore, the ability to deliver ubiquitous SLA-based connectivity will enable service providers to offer lucrative advanced services, such as managed extranets, across multiple networks. Analysys also believes the provision of SLAs will become an increasingly important service differentiator
and, in some markets, a pre-requisite.

Currently, however, many large enterprises are forced to either purchase partial solutions or to integrate solutions from a number of different service providers, as their requirements fall outside the network footprint of a single carrier.

Richard Medcalf, Senior Consultant at Analysys, said, “Businesses of all sizes, across all sectors and locations, have a strategic need for secure and predictable connectivity with their remote offices, mobile users, business partners, suppliers and distribution networks. Currently, service providers
can’t deliver the reach required on a single network so they must undertake the costly integration of multiple networks and sacrifice the flexibility, visibility and predictability customers demand. Moving to a collaborative model to overcome this problem should bring massive rewards both for service
providers and their customers.”


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NOTES TO EDITORS

About Analysys
Analysys Consulting delivers complete understanding of how the accelerating evolution of markets, regulation and technology will affect businesses. By applying in-depth industry knowledge and exploiting Analysys’s extensive data resources and proven analytical techniques, our consulting teams have established an unequalled reputation for achieving the highest standards of
objectivity and accuracy.

About Nexagent
Nexagent is a global leader in collaborative commerce for the telecommunications industry. Headquartered in Reading, UK, it was founded in July 2000 by Charlie Muirhead, who previously founded Orchestream, the telecoms software company, and iGabriel.net, the angel investment network; and Chris Gare, formally Director of Advanced Services at Cable & Wireless.

Nexagent has developed a network interconnect architecture and collaborative commerce platform enabling service providers, for the first time, to work together to deliver cost-effective, performance guaranteed, managed IP services internationally across multiple telecom carriers. Nexagent is now
finalising agreements for commercial pilots with a limited number of telecoms carriers and plans to launch commercial services in the second half of this year.

For more information on Nexagent, visit its Web site at www.nexagent.com

For further press information about Nexagent, including photography, please contact George Coleman at Mantra PR:

Tel: +44 (0)20 7072 2300 Fax: +44 (0)20 7072 2301

Email: gcoleman@mantra-pr.com
Web: www.mantra-pr.com