What 2016 will Hold for the Telecom Industry

As we begin 2016, there is one thing we know for sure: Many individuals and families have set resolutions for themselves for the specific goals they want to accomplish. Now, whether they keep those resolutions, or not, is another issue.

level 3 communications logoThis concept of setting resolutions and goals holds true for those in the business world, as well. Many corporations, both large and small, have set their business plans for this year, and more importantly, their budgets.

The same is true of the telecom industry. In fact, just this past week, a press release was sent out stating that one of the new objectives for telecom vendors is to acquire larger chunks of business. This simply means they’re going after larger market segments and the respective customer base that resides in them.

One such telecom vendor that has made this blatantly clear is Level 3. The management team at this organization is well aware of the stiff competition they face, especially from Comcast.

For example, they may possess the financial muscle to go after larger customers, but don’t have much in the way in their ability to service multiple industry segments.

According to the executive vice president and CFO of Level 3, Sunit Patel, “With the cable guys, most of their success has been in more of the lower end of enterprises or generally enterprises that have single locations . . . I think they are moving towards enterprises that have multiple locations in the same city, which is entirely different than from serving customers that have lots of people in lots of locations in different geographies and I think that that’s an organization and a cultural challenge that takes a number of years to figure out.” 

He also noted that a key factor in penetrating multiple markets is the ability to leverage what are known as network interconnection agreements (E-NNI’s).

Level 3 is also facing other competitors, not just Comcast. One other is Charter Communications that has made efforts to buy out Time Warner Cable and Bright House Networks.

GeoTel Communications, LLC, provides fiber route maps that help businesses visualize telecom data and locate fiber for predictive analytics and location-based intelligence. If interested in obtaining these datasets, call (800) 277-2172.