Service Provider Current Conditions
Reach ''High'' Territory for First Time in Latest Sage
Research Service Provider Confidence Index
[April 5, 2004]
Sage Research, Inc., a full-service
market research firm, today announced the results of
the March 2004 Service Provider Confidence Index (SPCI).
In the latest report, available via free subscription
at http://sageresearch.com/SPCIForm_a.htm, the Current
Conditions Index has ventured into "high"
territory (a score higher than 50) for the first time,
rising sharply to 55.2, from 46.2 in January. The Expectations
Index, meanwhile, fell slightly, but remains firmly
in "high" territory at 73.6. All six of the
Current Conditions sub-indices rose in March, led by
a substantial increase in the Employment Current Conditions
sub-index.
"The main SPCI indices being both
in 'high' territory, despite the dip in Expectations,
shows a continuation in the trend toward optimism among
service providers," said Chris Neal, a research
director at Sage Research. "In fact, very few of
the sub-indices fell in the March report; in particular,
the great optimism about employment stands out."
Sage Research began compiling the bi-monthly
SPCI in January 2002. This free report measures and
analyzes the current mood of telecommunications service
providers. It signals to companies that sell products
or solutions to service providers what their customers
consider to be the present condition of the industry
and what their expectations are for the near-term future.
Sub-Indices: Rosy Outlook for Employment?
The main Current Conditions and Expectations
Indices are each the average of six sub-indices (detailed
below). All of the Current Conditions sub-indices rose
in March. The largest gaining sub-index is Employment
Current Conditions, rising 23 points to its current
34, its high-water mark, despite remaining in "low"
territory. Three of the six Expectations sub-indices
rose as well, led by Capital Spending Expectations,
which jumped from 55 to 67. The sub-indices showing
slight decreases are Investor Confidence Expectations,
Industry Conditions Expectations, and Service Development
Expectations.
Methodology
The Sage Service Provider Confidence
Index is a tracking study, with data collected bi-monthly.
For the current SPCI, Sage Research included responses
from 101 service provider professionals from North America
and worldwide, including:
-- Incumbent carriers (ILECS, RBOCS
and PTTs)
-- Long distance carriers and IXCs
-- Internet, web hosting, and other
network service providers
-- Competitive carriers
-- Application service providers (ASPs)
-- Wireless operators
-- MSOs and other cable companies
To compile the SPCI, Sage Research asks the respondents
a series of questions about their organizations that
probe both current conditions and expectations for the
future. The questions cover six categories:
-- Spending on capital equipment
-- Spending on product and service development
-- Revenues
-- Employment
-- The value of the NASDAQ index as
an indicator of investor
confidence
-- Overall perceptions of industry conditions
For each question category, Sage Research calculates
respondents' current conditions and expectations values.
The Current Conditions Index and Expectations Index
are the per-respondent means of the values for each
of the six question categories.
You may receive the complete current
Service Provider Confidence Index, with methodology,
for free by subscribing on the Sage Research Web site
at http://sageresearch.com/SPCIForm_a.htm. Sage also
archives previous versions of the SPCI on its Web site
at http://sageresearch.com/SPCI_a.htm.
About Sage Research
Sage Research, Inc. is a full-service
market research and consulting firm providing global
demand-side research to technology product and service
providers. With in-depth experience in the networking
and telecommunications markets, Sage delivers actionable
data and recommendations based on the most current qualitative
and quantitative methods. Practice areas include customer
loyalty, market segmentation, brand equity, business
case validation, technology adoption, and product concept
testing. Founded in 1993, Sage serves a broad client
base that includes industry leaders and innovative start-ups.
For more information, visit www.sageresearch.com.
SOURCE: Sage Research
Sage Research Contact:
Doug Haslam, 508-655-5400 x209
Fax: 508-655-5516
dhaslam@sageresearch.com
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