Sage Research, Inc., a full-service market research firm, today announced the results of the March 2004 Service Provider Confidence Index (SPCI). In the latest report, available via free subscription at http://sageresearch.com/SPCIForm_a.htm, the Current Conditions Index has ventured into "high" territory (a score higher than 50) for the first time, rising sharply to 55.2, from 46.2 in January. The Expectations Index, meanwhile, fell slightly, but remains firmly in "high" territory at 73.6. All six of the Current Conditions sub-indices rose in March, led by a substantial increase in the Employment Current Conditions sub-index.

"The main SPCI indices being both in 'high' territory, despite the dip in Expectations, shows a continuation in the trend toward optimism among service providers," said Chris Neal, a research director at Sage Research. "In fact, very few of the sub-indices fell in the March report; in particular, the great optimism about employment stands out."

Sage Research began compiling the bi-monthly SPCI in January 2002. This free report measures and analyzes the current mood of telecommunications service providers. It signals to companies that sell products or solutions to service providers what their customers consider to be the present condition of the industry and what their expectations are for the near-term future.

Sub-Indices: Rosy Outlook for Employment?

The main Current Conditions and Expectations Indices are each the average of six sub-indices (detailed below). All of the Current Conditions sub-indices rose in March. The largest gaining sub-index is Employment Current Conditions, rising 23 points to its current 34, its high-water mark, despite remaining in "low" territory. Three of the six Expectations sub-indices rose as well, led by Capital Spending Expectations, which jumped from 55 to 67. The sub-indices showing slight decreases are Investor Confidence Expectations, Industry Conditions Expectations, and Service Development Expectations.

Methodology

The Sage Service Provider Confidence Index is a tracking study, with data collected bi-monthly. For the current SPCI, Sage Research included responses from 101 service provider professionals from North America and worldwide, including:

-- Incumbent carriers (ILECS, RBOCS and PTTs)

-- Long distance carriers and IXCs

-- Internet, web hosting, and other network service providers

-- Competitive carriers

-- Application service providers (ASPs)

-- Wireless operators

-- MSOs and other cable companies


To compile the SPCI, Sage Research asks the respondents a series of questions about their organizations that probe both current conditions and expectations for the future. The questions cover six categories:

-- Spending on capital equipment

-- Spending on product and service development

-- Revenues

-- Employment

-- The value of the NASDAQ index as an indicator of investor
confidence

-- Overall perceptions of industry conditions


For each question category, Sage Research calculates respondents' current conditions and expectations values. The Current Conditions Index and Expectations Index are the per-respondent means of the values for each of the six question categories.

You may receive the complete current Service Provider Confidence Index, with methodology, for free by subscribing on the Sage Research Web site at http://sageresearch.com/SPCIForm_a.htm. Sage also archives previous versions of the SPCI on its Web site at http://sageresearch.com/SPCI_a.htm.

About Sage Research

Sage Research, Inc. is a full-service market research and consulting firm providing global demand-side research to technology product and service providers. With in-depth experience in the networking and telecommunications markets, Sage delivers actionable data and recommendations based on the most current qualitative and quantitative methods. Practice areas include customer loyalty, market segmentation, brand equity, business case validation, technology adoption, and product concept testing. Founded in 1993, Sage serves a broad client base that includes industry leaders and innovative start-ups. For more information, visit www.sageresearch.com.

SOURCE: Sage Research

Sage Research Contact:
Doug Haslam, 508-655-5400 x209
Fax: 508-655-5516
dhaslam@sageresearch.com

For more information: