It is somewhat similar to Sprint Communications' ION in that it is an ATM-based service that provides managed network services for businesses, marrying all applications on one network. All three services are similar in that they are about combining access, said Lisa Pierce, an analyst at Giga Information Group, a consulting firm. MCI WorldCom's On-Net is an inducement for customers to move their access from a local carrier to access provided and provisioned by MCI WorldCom. Peter Bernstein, president of Infonautics Consulting, said these services track an industry trend. Networks are becoming so complex that in the business world there is a shift from customer premises controlled equipment, where customers manage their own network, to where customers are overwhelmed by everything so they decide to outsource.
Customers are willing to pay, at a reasonable price, for the managed services.
For residential customers, these services can be a means of retaining customers by way of providing complex, value-added services, which therefore make it tougher to switch service providers.