Verizon Business drops to No.2 Access Provider to the City of London for the first time in 10 years.
Verizon' slide continues their 2005 trend with competition from UK based IP service providers and high levels of customer churn taking their toll on Verizon' position. Making BT the number one provider of Primary Internet Access to the largest FTSE companies.
Loss of client accounts to a competitor, or "Churn" is one of the most significant factors effecting telco profitability. Verizon' churn of corporate accounts is around 12% p.a for this sample group. BT are subject to a churn rate of 6% p.a. in the same period. These rates should be compared with THUS who have had 0% churn and a customer "acquisition" rate of 20% p.a.
We have mixed feelings about the change as both BackChannel founders and most of the team here have at some point worked for the company that has over time been Unipalm/PIPEX/UUNet/Worldcom/MCI and now Verizon, Steve having been with PIPEX on the day the doors opened.