But the news really isn't all bad these days. A recent The Yankee Group (www.yankeegroup.com) study shows competitive telecom providers are making a good impression on their customers through strong relationships, personalized service and lower prices. That is something that should make investors, potential customers and those competing against new entrants take notice.
In its "Communications Services Survey 2001," which polled 799 small and medium-sized businesses (SMBs), The Yankee Group reports that more than three-quarters of all SMBs using CLECs in the past year are more satisfied with the CLEC than they were with their previous provider. About 70 percent of the SMBs that CLECs serve reported they received services at a satisfactory price, compared to just over half of those served by incumbent telcos.
The Yankee Group study also reveals competitive providers got higher marks when it came to customer loyalty, being in touch with customer needs, timely service installation and the professionalism of their customer service staffs.
Even though investors no longer seem interested in taking a risk to support competitive telecom providers, it's clear from The Yankee Group analysis that demand for, and satisfaction with, alternative service provider offerings has not waned.
SMBs took a risk when they began to put their vital communications needs in the hands of new, unproven providers. They now are reporting that they've been pleasantly surprised.
Given adequate time to continue providing service and competitive prices, these service providers should be able to gain more market share -- and revenue associated with that -- and could even end up pleasantly surprising today's fearful investors.
GAIL LAWYER
EDITOR IN CHIEF
