U.S Telco Procurement Practices

This publication has been discontinued on July 19, 2011.

Introduction

Abstract

The purpose of this report is to analyze the current actual structure of competitive large dollar volume proposals to US Incumbent Telecom Carriers, in order to help telecom equipment suppliers structure their own proposals more favorably and competitively. Moreover, this report provides insight into US RBOCs competitive evaluation processes used in considerable detail including the nature of the evaluation models employed, the primary evaluation factors utilized, and their relative weights. This report aims to allow suppliers to structure and price future proposals such as to achieve a more favorable evaluation, and hence a higher win ratio. It provides an evaluation of how services are structured both in competitive proposals, the evaluation models of the carriers, how services are priced, i.e., the indicator used for pricing (network element count, switch count, subscriber count or investment, etc.) and the relationship between this indicator factor and service pricing.

TABLE OF CONTENTS

I SCOPE & OBJECTIVES

• A SCOPE OF THIS STUDY
• B TARGET GROUP
• C OBJECTIVES
  • 1 Primary Goal
  • 2 Objectives
• D INTERVIEW METHODOLOGY
  • 1 Service Providers
  • 2 Vendors

II VENDOR INTERVIEW RESULTS ・FORMATTED

• 1 ALCATEL USA
• 2 CISCO SYSTEMS
• 3 JUNIPER NETWORKS
• 4 LUCENT TECHNOLOGIES
• 5 NORTEL NETWORKS

III VENDOR INTERVIEW RESULTS ・DETAILED TEXT

• A ALCATEL USA
  • 6 CISCO SYSTEMS
  • 7 JUNIPER NETWORKS
  • 8 LUCENT TECHNOLOGIES
  • 9 NORTEL NETWORKS

IV TELECOM SERVICE PROVIDER INTERVIEW RESULTS (UNIDENTIFIED)

• A SERVICE PROVIDER A
  • 10SERVICE PROVIDER B
  • 11SERVICE PROVIDER C
  • 12SERVICE PROVIDER D
  • 13SERVICE PROVIDER E
  • 14SERVICE PROVIDER F
  • 15SERVICE PROVIDER G
  • 16SERVICE PROVIDER H
  • 17 SERVICE PROVIDER I
  • 18SERVICE PROVIDER J

V PROCUREMENT-RELATED INDUSTRY ASSOCIATION INTERVIEW RESULTS

A CAPS (CENTER FOR ADVANCED PROCUREMENT SERVICES

• 19FIRMS REPORTED TO BE PROVIDING BID EVALUATION SOFTWARE
• 20GSA SCHEDULE COMPETITORS・PRICING INFORMATION
• 21(ITSMA) INFORMATION TECHNOLOGY SERVICES MARKETING ASSOCIATION
• 22QUEST FORUM
  • a) Goals & Activities
  • b) Significance of the Quest Forum
  • c) Conflict Still Seen on Services Pricing & Bundling
  • d) Greatest Impact of Quest Forum
• 23TELCORDIA TECHNOLOGIES
  • a) Bid Evaluation Tools
  • b) Consulting Side Input
  • c) Telcordia Service Provider Professional Services View
• 24TYPICAL PROCUREMENT SUPPORT SOFTWARE DESCRIPTIONS

VI SUMMARY OF SUPPLIER INTERVIEW RESULTS

A PRICING APPROACH FOR LARGE BUYS

• 25CUSTOMER PROPOSAL EVALUATION SUPPORT
• 26MAINTENANCE
• 27WARRANTY
• 28BUNDLING

VII OBSERVATIONS & CONCLUSIONS FROM SERVICE PROVIDERS・ INTERVIEWS

VIII REGULATORY, TAX & ACCOUNTING CONSIDERATIONS - BUNDLING

IX CONCLUSIONS ON BID EVALUATION CRITERIA

• A METHODOLOGY
• 29OVERALL FINDINGS ON BID CRITERIA
• 30ANTICIPATED CHANGES IN WEIGHTS
• 31TELECOM SERVICE PROVIDER TOP PRIORITIES
• 32ITSMA RECENT CONCLUSIONS ON MARKET ENVIRONMENT
• 33IMPORTANCE RATING OF NETWORK SERVICE PROVIDER ATTRIBUTES ・ITSMA
• RESULTS
• 34FIRMS ACHIEVING HIGHEST RANKING BY ATTRIBUTE ・ITSMA RESULTS
• 35COMPARISON WITH ITSMA FINDINGS ON SELECTION CRITERIA:
• ACTION ON SECTION CRITERIA

II CONCLUSIONS / RECOMMENDATIONS

III APPENDIX ・DETAILED VENDOR SERVICE OFFERINGS

• 36ALCATEL USA
• 37CISCO SYSTEMS
• 38JUNIPER NETWORKS
• 39LUCENT TECHNOLOGIES
• 40NORTEL NETWORKS

Related Reports