WASHINGTON-Business executives rate long-distance carriers as being more innovative in their customized telecom solutions than are local exchange carriers, an opinion wireless carriers should heed when considering a venture into the local loop, according to an updated survey.
“The Third Annual Telecommunications Survey-Business User Perspectives on Competition Issues,” compiled by Atlanta-based Deloitte & Touche Consulting Group from 540 responses, also found that long-distance carriers, by a 2: 1 margin, exceeded business-customer expectations regarding customized billing and reporting, rapid provisioning capabilities, and prompt and effective network problem resolution. More than 25 percent of the respondents-who were drawn from such sectors as transportation/utility, financial services, manufacturing, food/beverage/retail and the public sector-said they were “very dissatisfied” with LEC operational and support capabilities.
In particular, respondents indicated little satisfaction with LEC/long-distance teams in charge of monitoring their accounts. “While customer satisfaction is influenced by a variety of factors, over three-quarters of respondents indicated that their satisfaction is dependent upon the quality (e.g., competence and responsiveness) of their account team,” the firm said. “Furthermore, the majority of end users indicated that the degree to which they are satisfied with their account team directly influences their loyalty to their provider.”
Thirty percent of those surveyed plan to switch LECs when an alternative becomes available, “assuming equal levels of service and price.” Seventy-seven percent of that number indicated, at least initially, that they will turn to their long-distance carrier for local service when the opportunity presents itself, 17 percent said they would move to a competitive access provider, 3 percent said they would go to an out-of-region LEC, 2 percent would choose their cable television operator and 1 percent said they would try a cellular/personal communications services provider. In 1995, Deloitte & Touche found that 3.5 percent would have chosen the wireless carrier, and Robert Mayer in the Washington, D.C,, office attributed this drop to the strength long-distance carriers have shown in improving their profiles and garnering new customers.
“One percent vs. 3 percent is not big news,” he added. “We’re not at the point now where business people see wireless as an alternative to the LEC. A few years down the way, maybe. Once wireless carriers can establish quality and reliability, executives won’t even think about whether their calls are going out over the air or through copper wire or fiber optics.”
One-stop-shopping for equipment and services was a main concern of the executives who responded, and 75 percent of them preferred dealing with long-distance carriers for local, long-distance, paging, cellular and data services, much of which is offered on a resale basis from the same LECs from which execs want to sever ties. Neither LECs nor long-distance providers, however, currently are capable of meeting all respondents’ needs, and they believe probably no one will be able to satisfy all criteria.
Deloitte & Touche also asked what it would take for business users to change long-distance carriers and, unlike their want to change LECs as soon as possible, most want to keep the status quo. Should a rival carrier, such as a new PCS or enhanced mobile radio services operator, court an executive for a telecom contract, “must haves” listed by executives included number portability, lower rates, network reliability, global capability, excellent data transfer and better billing of wireless services.
