It's a harsh environment that operators are working in. If they are to
successfully support heavy traffic growth, deliver new and more integrated
offerings as well as improve efficiencies and costs, then they have to make
better use of managed services and outsourcing.
Kris Szaniawski, Principal Analyst , Informa Telecoms & Media.
This newly updated and revised report analyzes the strategic options available
in the managed services market, looking at global trends in network services,
data and application services and managed OSS/BSS services.
This edition analyzes the strategic options for those interested in managed
services, looking at the global trends in network services, data and
application services and managed OSS/BSS services.
The report includes global analysis of managed services, a global industry
survey and a broad range of case studies identifying what works and what does
not. It also includes five-year forecasts to 2016, by region and by market
sector including network services, data and application services and managed
The managed services market is changing as it matures. An ever-widening range
of operators is prepared to consider using managed services, whereas
previously it was the smaller operators or new entrants that were more
inclined to do so. There is also an increasing willingness on the part of
operators to consider outsourcing a broader range of functions without it yet
being clear how to pursue an integrated strategy or who to turn to for the
management of those functions.
Network operating centers currently still focus to a large extent on
network-related operations but in the medium term will increasingly carry out
value-add service-layer operations as well. We are already seeing increasing
network-vendor interest in support systems and the continued convergence of
the telecoms and IT sectors will also have a wider impact. Network-sharing
joint ventures, towe- company expansion, new forms of wholesaling
relationships and managed-energy deals are also breathing new life into the
Key issues addressed in this edition:
- What are the underlying drivers of growth in the managed-services market
for telecoms operators?
- How quickly will this market grow, and why?
- Where is the growth coming from, and why?
- What are the opportunities for operators and vendors in this market?
- Which operators are most likely to adopt this strategy, and why?
- What are the risks of adopting this strategy - for operators and for
- What are the implications for telecoms operators' business models and
their relationship with vendors?
Countries / Sectors / Companies covered:
Regions: North America, Latin America, Asia Pacific Developed, Asia
Pacific Developing, Western Europe, Eastern Europe, Middle East, Africa.
Sectors: Network services, data and application services and managed
Case studies involving companies include: Airtel/Comviva, KPN/Huawei,
Mobilicity/Amdocs, Nextel/NSN, Sprint/Ericsson and Vodacom Tanzania/NSN.
Table of Contents
Managed Services Executive Summary - PowerPoint file (40 slides)
From network to service management and transformation
- Fig. 1: Survey question: What areas of an operator's business are likely
to be outsourced in three years time compared with those currently outsourced?
- Fig. 2: Alcatel-Lucent: Managed-services solutions are moving from
network-centric to service-centric
- Fig. 3: Alcatel-Lucent: Managed end-to-end service operations
- Fig. 4: Summary of the benefits of the Alcatel-Lucent/ HP joint venture
- Fig. 5: Transformational outsourcing scenario
- Fig. 6: Ericsson OSS/BSS offering
- Fig. 7: Survey question: What is your preferred strategy for procuring
- Fig. 8: Subex: OSS/BSS engagement models
- Fig.9: Bharti Airtel's goals for VAS managed services
- Fig.10: Mobilicity outsourcing partners
The impact of network sharing, tower company and wholesaling models on managed services
- Fig. 1: Survey question: Is network sharing planned or already implemented
by your company?
- Fig. 2: Global breakdown of network sharing announcements to end-3Q11
- Fig. 3: Regional split of global network sharing announcements to end-3Q11
- Fig. 4: Vodafone Group's global network sharing details
- Fig. 5: Network sharing indicative savings
- Fig. 6: MBNL network sharing joint venture, first phase.
- Fig. 7: Strong points of 3GIS performance
- Fig. 8: Weak points of 3GIS performance
- Fig. 9: A selection of major tower companies
- Fig. 10: Bharti Infratel core values
- Fig. 11: The impact of LTE
- Fig. 12: LightSquared wholesale model
New opportunities in energy management
- Fig.1: Survey question: Which of the below is the biggest challenge facing
mobile operators in the adoption of services in rural areas?
- Fig. 2: Modeling power costs
- Fig. 3: Transforming and managing CSPs' energy estate
- Fig. 4: Tanzania mobile service revenue by operator, 1Q09-1Q11
Data and applications service trends
- Fig. 1: Operators planning to outsource services/activities in the next
12/18 months: 2011 vs. 2009
- Fig. 2: Global managed services and outsourcing contract sub-categories,
- Fig. 3: Managed services market landscape, with selected players
- Fig. 4: A sample of hosted mobile VAS providers
- Fig. 5: The three layers of cloud computing
- Fig. 6: Cloud deployment models
- Fig. 7: Summary of the benefits of the Alcatel-Lucent/ HP joint venture
Managed Services and Outsourcing Survey 2011: Transformed operator attitudes
- Fig. 1: Survey question: Which region are you based in?
- Fig. 2: Survey question: What is your area of work?
- Fig. 3: Survey question: What areas of your business are currently
outsourced? 2011 vs. 2009
- Fig. 4: Operators planning to outsource services/activities in next 12-18
months: 2011 vs. 2009
- Fig. 5: Areas of an operator's business likely to be outsourced in three
years time compared with those currently outsourced
- Fig. 6: Survey question: In terms of network operations, how likely are
the following areas to be outsourced by you? 2011 vs. 2009
- Fig. 7: Survey question: Which technologies or services related to
technologies do you expect to outsource? 2011 vs. 2009
- Fig. 8: Regional differences in intentions to outsource
- Fig. 9: Survey question: Is network sharing planned or already implemented
by your company? 2011 vs. 2009
- Fig. 10: Reasons for implementing managed services: 2011 vs. 2009
- Fig. 11: Survey question: What do you see as the main hot issues in
managed services over the next three years?
- Fig. 12: Survey question: Which player do you believe is best positioned
to deliver each type of service?
Managed-services and outsourcing market trends, 2008-2011
- Fig. 1: Types of managed services and outsourcing contracts included in
- Fig. 2: Global managed-telecoms-services revenues by sector, 2008-2010
- Fig. 3: Global, managed-services and outsourcing contracts announced,
- Fig. 4: Global, managed-services and outsourcing contracts by subcategory,
- Fig. 5: Global, breakdown of managed-service- and outsourcing-contract
subcategories, 2008 and 2010
- Fig. 6: Managed-service- and outsourcing-contract numbers by region,
- Fig. 7: Managed-service and outsourcing contracts share by region, 2008
- Fig. 8: Managed-telecoms-service revenues by region, 2008 and 2010
Managed services & outsourcing contracts to end 3Q11 - Excel file
Managed services forecasts, 2011-2016
- Fig. 1: The addressable market: Managed services in the context of the
wider telecoms services market
- Fig. 2: The managed services landscape
- Fig. 3: Global, total addressable market for operator services revenues,
- Fig. 4: Global, telecoms managed services revenues, by sector, 2011-2016
- Fig. 5: Managed services providers' market share of global managed
services revenues, 2011 vs. 2016
- Fig. 6: Managed services market landscape, with selected players
- Fig. 7: Global, telecoms managed services revenues, by region, 2011-2016
- Fig. 8: Global, network managed services revenues, by region, 2011-2016
- Fig. 9: Global, data and apps managed services revenues, by region,
- Fig. 10: Global, managed OSS/BSS revenues, by region, 2011-2016
Managed services forecasts 2011 2016 - Excel file
Case study: Airtel's VAS managed services strategy
- Fig. 1: Africa, managed services revenue forecasts, 2010-2016
- Fig. 2: Airtel's goals for VAS managed services
- Fig. 3: Africa, data revenue forecasts, 2009-2016
- Fig. 4: Africa, Airtel's non-SMS data revenues as a percentage of total
data revenues, selected markets, 2Q08-1Q11
- Fig. 5: Scope of Comviva's managed service solution
- Fig. 6: Airtel's expected business benefits
- Fig. 7: Bharti Airtel India, data as a percentage of service revenue,
- Fig. 8: SWOT analysis of the Airtel-Comviva VAS managed service partnership
Case study: Mobilicity's Canadian outsourcing strategy
- Fig. 1: Mobilicity coverage
- Fig. 2: Canada, mobile subscriptions by operator, 1Q11
- Fig. 3: Mobilicity outsourcing partners
Case study: KPN outsources European MVNE IT to Huawei
KPN Mobile's European MVNOs
Case study: Nextel adopts managed services to focus on marketing and selling 3G
- Fig. 1. Nextel, subscriptions and market share, 2Q11
- Fig. 2: Latin America, mobile market penetration in those countries where
Nextel operates, 2Q11
- Fig. 3: Nextel, churn rates, 4Q09-2Q11
- Fig 4: SWOT analysis of Nextel's managed-service strategy
Case study: Sprint's network outsourcing and modernization strategies
- Fig. 1: US, mobile market share of the top four operators, end-2005 vs.
- Fig. 2: Sprint's strategic objectives
- Fig. 3: US, top four operators, postpaid churn, Sep-09 vs. Sep-11
- Fig. 4: SWOT analysis of Sprint's Network Advantage outsourcing deal with
Ericsson and competitive position
Case study: Vodacom Tanzania managed-services contract with Nokia Siemens Networks
- Fig. 1: Tanzania, mobile market share, by operator, 2Q09-2Q11
- Fig. 2: Tanzania, mobile service revenue by operator, 1Q09-1Q11
- Fig. 3: SWOT analysis, Vodacom Tanzania/NSN managed-services deal