Global facilities management is a flawed concept, according to a new report from Analysys Ltd of Cambridge, UK, and in the future, services will be positioned as managed network services, virtual private networks or bandwidth on-demand services. The report also suggests that multinational users now have the clout to force service providers to cut their prices. The report, Global Service Provider Market Strategies, identifies five companies as truly global service providers – British Telecommunications Plc and its Syncordia, AT&T Co, Cable & Wireless Plc, MCI Communications Corp and Sprint Corp. Of these, only Syncordia still positions its service as facilities management – the management and operation of all or part of a private network by an outside agency. But the report suggests that all these companies will experience increased competition from new market entrants, such as international simple resale providers and infrastructure providers. According to Andrew Entwhistle, principal consultant and author of the report, Such organisations could undercut the global service providers by offering cheaper solutions for specific parts of the user’s network. This applies particularly in Europe, says Analysys, where prices are higher than in North America. The report says that European regulation has opened markets to competition, so that users are less dependent on their national phone monopolies and can insist on competitive bidding. Analysys suggests that, in particular, users can put pressure on prices by resisting attempts by service providers to impose confidentiality on prices, and by being prepared to use information from one service provider to get a better deal from another. The report warns service providers against offering global one-stop shopping services, as they may then find that the more attractive routes or services are picked up by other types of provider with cheaper offerings. It predicts that prices will continue to fall, both for basic capacity and for value-added services. This will bring about an increase in the number of high-capacity international links, just as domestic high-capacity links have become more common in the UK and the US. Analysys also highlights the way telecommunications operators are making formal or informal alliances to create their service offerings, and suggests that distinct groupings are emerging – the most notable being the one established between MCI, France Telecom and Deutsche Bundespost Telekom.
