NTT set to edge out AT&T as AsiaPac network services leader

Stuart Corner
Monday, 05 February 2007 10:40

IT Industry - Strategy

In a market top heavy with aggressive global players, Gartner has flagged Japan's NTT Communications as poised to challenge AT&T for leadership of the Asia Pacific network services market.

Gartner has just published its 'Magic Quadrant for Asia Pacific Network Service Providers, 2006.' It assesses providers on a range of performance criteria and labels them challengers, leaders, niche players and visionaries according to their completeness of vision and ability to execute.

Not surprisingly AT&T, Orange Business, (formerly Equant) and BT Global Services sit comfortably high in the leaders' quadrant. Verizon Business (formerly MCI) only just ranks above challenger status. However NTT is second only to AT&T on its ability to execute, and third after AT&T, Orange and BT on completeness of vision.

This, according to Gartner, is despite some significant weaknesses, which, if they can be addressed could make it top dog.

"NTT is the most focused of the Asian players in becoming the leading player in the region. It has continuously invested ahead of others in product development, network infrastructure, and service and support," Gartner reports. "These efforts are reflected in the steady improvement in results over the past three years. Today, almost half of its customers are non-Japanese enterprises; more than 60 percent of its new customers in the past year were also non-Japanese. Customers say that NTT is transforming more and more into an international player, overcoming the legacy perception that it's primarily a Japanese carrier."

According to Gartner, NTT has "a well-thought-out managed services strategy. It drives value back into its network by focusing on network-based remote management of LANs, servers and desktops, in particular for security."

It is particularly strong in China. "It has boosted its support again in China, providing a single point of contact, 400 support staff, and customer service centres in Dalian and Guangzhou for IT and security services, on top of many other capabilities.