Secure data offerings

ATLANTA--With the current depressing state of the telecom market, service providers of all types are trying to invent new ways to generate additional revenue from existing customers. 

“Carriers are shifting from adding capacity to their networks as fast as they can to trying to sell more services to the customers they’re already equipped to serve,” says Larry Goldman, an analyst with RHK.

And while 80% of carriers’ current revenue comes from voice services, their network growth has largely been driven by the huge demand for data. The key to the future profits and competitive distinction, then, requires service providers to puzzle out a way to gain revenue from data services. Just providing a big bandwidth pipe is, of course, of limited long-term value. 

Managed security is one such new data service that’s emerged in recent months. Competitive carriers have  recognized the demand for a managed security offering--Myrient is a good example--but incumbent operators are making inroads, too. 

BellSouth, for example, has just announced a managed firewall solution for small and medium-sized businesses (SMBs). Ultimately delivered by Internet Security Systems, a managed security provider, the service itself is based on security software and hardware from Check Point and Nokia--and on the broadband pipe BellSouth has delivered to the enterprise. 

The service, which is priced between $800 and $1500 per month, is targeted at the incumbent operator’s 1.3 million base of business customers that have at least a T-1 connection, according to Ken Kraft, senior director of BellSouth’s Business Internet Services. These SMBs, moreover, generally don’t have the expertise, or the inclination, to manage their own security.
Matt Vartabedian is Senior Editor for Telecom Business. He can be reached at matt_vartabedian@intertec.com.