Cash Not Assets Key to Telecoms Success, Says Analysys.Business Editors CAMBRIDGE, England--(BUSINESS WIRE)--July 20, 2001 Prioritizing cash conservation and revenue generation ahead of network deployment and asset acquisition has to be the core to any telecom operator's business strategy in the current climate. This is one of the main conclusions of a new report, Back to Basics: New Entrant en·trant n. One that enters, especially one that enters a competition. [French, from present participle of entrer, to enter, from Old French; see enter. Carrier Strategies in a Bear Market, published this week by Analysys, the global advisor in telecoms, IT and new media (www.analysys.com). "It's the availability of cash that needs to be the focus of telecom operators' attention, not investment strategies," says Ross Pow, managing director of Analysys Research and co-author co·au·thor or co-au·thor n. A collaborating or joint author. tr.v. co·au·thored, co·au·thor·ing, co·au·thors To be a collaborating or joint author of: "He and a colleague . . . of the report. "If you want to find winners, look at their balance sheets not their network maps." The new report provides a concise explanation of the causes of the crash and describes the strategies that those left in the market need to adopt in order to survive and eventually thrive. The analysis is illustrated extensively by company case studies, with comments from their senior management. These companies include Telewest, Ebone, KPNQwest, IXEurope, XO Europe and WorldCom - all of which have recently been successful in gaining new finance. The report observes that now the values and preconceptions associated with the Internet bubble See dot-com bubble. have fallen from favor, the market is now taking a more realistic view. "While bandwidth demand continues to drive relentlessly upward, it has not generated the expected extra revenues," states senior consultant Tim Ollerenshaw. "Similarly, it has proven difficult to generate revenues from new technologies, as DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary (digital subscriber line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and ) so graphically illustrates. Nor has regulation always managed to live up to expectations in enabling new players to establish themselves quickly. However, the underlying economics of demand for Internet and Internet protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (IP) services remain. Revenues are forecast to rise steadily to the end of 2002 when a marked upturn will take the market to a value of USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 225 billion by 2006. Graph available on request to journalists. For those operators that can trade through the current crisis and survive, Analysys concludes that more profitable times are ahead. An extended version of this press release is available on request. |
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