Argentine Enterprises Driven by Cost Reduction, but Still Select Providers on Service Quality, According to Yankee Group Survey.

BOSTON -- Telmex Argentina scores top marks in enterprise evaluation

Reducing telephony costs and improving network security are the dominant initiatives for Argentine large enterprises in 2004 to 2005, according to the Yankee Group 2004 Latin America Enterprise Communications Survey.

"The good news for providers is that the majority of enterprises are not expecting to reduce their telecom/IT budgets in 2005, but rather are anticipating a reallocation of costs based on new service and platform efficiencies. On average, large enterprises are spending roughly 34% of their annual telecom/IT budgets on fixed telephony services, followed by 24% on data and internet services. Over 40% of the largest enterprises (over 1,000 employees) are using VoIP, demonstrating cost-cutting initiatives already in place," said Erica Eppinger Fox, Yankee Group Latin America and Asia-Pacific Research and Consulting director.

When selecting service providers, demonstrated service reliability and quality slightly edges out price considerations for large enterprises. According to satisfaction rankings from enterprise clients, Telmex Argentina garnered the highest scores, with accolades in customer care and support as well as price. Arnet, the internet and data arm of Telecom Argentina, ranked a close second, with high scores in geographic coverage and service reliability. Across vertical industries, roughly 25% of enterprises are interested in purchasing bundled services from their providers, with internet and WAN services as key components.

The Yankee Group 2004 Latin America Enterprise Communications Survey fielded in Argentina, Brazil and Colombia was designed to help telecommunications carriers, wireless service providers, equipment vendors, systems integrators and enterprise application vendors understand demand trends for wireless and wireline services, as well as purchasing behavior of large (500-plus employees) enterprises.

PRESS CONTACT

For interviews, contact Erica Eppinger Fox, [e-mail].

THE YANKEE GROUP (http://www.yankeegroup.com)

The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe.