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IP migration on the rise in Canada: AT&T/EIU global survey

According to a global survey conducted by the Economist Intelligence Unit (EIU), in conjunction with AT&T, Canadian...


September 15, 2005  


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According to a global survey conducted by the Economist Intelligence Unit (EIU), in conjunction with AT&T, Canadian executives have more aggressive plans to implement Internet Protocol (IP) networks than their global counterparts.

The survey of 236 senior global executives, including 77 CEOs, showed that 62% of Canadian companies have plans to deploy IP networks throughout all or most of their organization by 2008, slightly above the global rate of 60%. Senior executives from 35 Canadian companies participated in the survey.

The study was conducted to explore the business ramifications of migrating networks to IP.

Results showed that although Canadian organizations have ambitious deployment plans, they lag the global average in current IP network implementations. Only 20% of Canadian companies have implemented IP networks, compared to 25% of companies globally.

However, similar to their global counterparts, Canadian respondents cited reduced operational costs along with better quality communications, improved customer service and enhanced collaboration (with customers, suppliers and partners) as the top benefits of converged IP networks.

Overall, 37% of Canadian executives said that convergence is important or critical to achieving their strategic IT and business objectives.

While the Canadian rate was below the global average of 45%, the results show an important shift in the emphasis of network convergence projects.

Until recently companies mainly saw converged platforms as a way to reduce network costs, but there is now much greater emphasis on how to use convergence to innovate and add value.

"Lowering capital and operational expenditures is clearly important, but to a degree, is a secondary benefit of convergence," said Richard Blacklock, director of AT&T’s business strategy and development division.

The EIU/AT&T research indicates that mobile text, video and web chat are set to become key channels for customer service over the next two years.

Firms need network solutions that support a more complex and fluid communication environment, one that also supports collaboration with suppliers and partners.

The EIU is the business information arm of The Economist Group, publisher of The Economist.