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Long Time to Connect New Branches is Losing Carriers Money

New CSP Survey Reveals Post COVID Market Outlook for L2 Business Services
Oct 04, 2021

Tel Aviv, October 4, 2021 – RAD, the leader in Ethernet Access Devices and Network Edge solutions, today released key insights from a recent survey of 100 communications service providers (CSPs) around the world. In the survey, conducted by Global Surveyz, industry professionals shared their biggest challenges and thoughts on where the telecom industry is heading with regards to Layer 2 (L2) business services.

According to 56% of respondents, it is taking carriers up to 60 days or more to connect a new customer location. Such a long time to cash means that carriers are leaving significant money on the table. Moreover, such a long connection time puts the carrier at risk of suffering churn from customers who simply cannot wait so long. They may move to a competitor, even across all of their branches.

Another key trend that emerged from the survey is that 100G L2 business services have become mainstream. A nearly unanimous vote of 98% of respondents either see such services commercially available today (64%) or expect their rollout within 12 to 24 months (34%). The reason for this is clear when considering that businesses demand more access to cloud services and ultra-high bandwidth communications. What used to be reserved for large carrier-to-carrier services is now part of mainstream business communications offerings.

“This survey provides a clear voice of the CSP,” says Ilan Tevet, Vice President Marketing and Business Development at RAD. “Long time to cash is a real issue that is costing carriers money, and customers, in a highly competitive market. In addition, CSPs need flexibility to support increasing bandwidth demand."

“Our ongoing engagement with CSPs indicate a growing interest in WAN modernization projects including upgrading underlying service assured L2 connectivity,” says Roy Chua, Principal Analyst at AvidThink. “Results from RAD’s survey demonstrate increasing bandwidth demands from enterprises and increasing rising interest in fixed-wireless access, both 4G LTE and 5G. Zero-touch, trouble-free, instant-on connectivity augmented by cellular definitely helps with time-to-value for both enterprises and CSPs.” 

“The survey clearly reaffirms the great fit of RAD’s rich EAD portfolio to CSPs’ needs,” concludes Tevet. “This includes ultra-fast service rates and setup with zero touch automation and LTE broadband uplinks. In addition, license-enabled remote upgrades, from 1G up to 100G, provide that much needed flexibility.”

The complete CSP Survey: L2 Business Services and 5G xHaul report is available here

About RAD

As a global telecom access solutions vendor, RAD is committed to enabling service providers and critical infrastructure operators to evolve any service over any network. By keeping at the forefront of pioneering technologies and engaging in co-innovation with our customers, we strive to help service providers move up the value chain at a pace that is right for them, while offering their end-customers and network operators added value – be it in EADs and network edge solutions, industrial IoT, or 5G xHaul. With 40 years of innovation and a significant worldwide presence in over 150 countries, RAD has an installed base of more than 16 million network elements. RAD is a member of the $1.5 billion RAD Group of companies, a world leader in telecommunications solutions. 

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