BT Displaces MCI as Leader in Euro VPN Contracts

BT now has a higher win rate than major competitors when bidding in Europe for large international VPN contracts, according to the latest Win Loss report from BRC Consultancy Ltd, London.

“Over the last year or so BT is the global provider that has improved the most which presumably reflects sustained efforts to succeed in this competitive market”, says David McCron, Director at BRC. “BT seems to win for compelling reasons, such as its technology and depth of cover in Europe.”

The picture has changed from a year ago when MCI was in the lead, winning over 40% of its international VPN bids in Europe. This demonstrated impressive success at the time in overcoming MCI’s Chapter 11 setback. But its win rate has dropped substantially, which should concern its new owner Verizon.

The report examines the selling performance in Europe of top international VPN providers. It also reveals most customers still have unfulfilled needs after obtaining multiple supplier bids for VPN service. These include the need for more widespread DSL access and better network latency between Europe and Asia from even the most established suppliers. An operator who manages to serve such needs through service improvements will increase its competitiveness. This is key to success in this price pressured market where operators struggle to differentiate their rival offers.

Most suppliers also need to improve the consistency of their selling approach. Often the same supplier achieves wins in tough situations by demonstrating an exemplary selling approach, while losing other contracts by appearing uninterested.

BRC’s Win Loss Report represents output from a continuous study to track experiences of European buyers who recently purchased international data network services. It focuses on services from AT&T, BT, Cable & Wireless, Colt, Deutsche Telekom, Equant, MCI and others. It reveals the latest customer requirements, information about supplier selling capabilities, win rates, reasons for winning and losing and who beats whom.

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