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Home > Computers and Information Technology > IT Administration & Services > Outsourcing
Network Outsourcing: Strategies and outlook
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| Published Date:
June 2007
Published By:
IDATE
Order Code:
R221-173
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Operators are signing large network outsourcing deals with increasing frequency lately. In fact, there are more than one
hundred major network operators - both mobile and wireline - that have outsourced at least part of their networks to one
of the major telecommunications equipment suppliers, including market leaders Ericsson, Alcatel-Lucent, and Nokia
Siemens Networks. Only a couple of years ago, all but a very few operators expressed no interest in outsourcing, claiming
that they would never surrender control of their network ‘crown jewels’. Today many of these same companies are signing
multi-million dollar, multi-year contracts to turn over responsibility for the network to their equipment supplier partners.
So what explains this shift? Quite simply, significant financial, operational and strategic pressures are forcing operators to
reconsider outsourcing. This report provides an overview of the network outsourcing business model, explains its key financial,
strategic, and operational benefits. The report also analyzes the profiles of the companies that have decided to outsource
as well as their equipment supplier partners. Finally, the report assesses the global market opportunity for network
outsourcing and draws out the prospects for future development of the industry.
Key questions
- What is network outsourcing?
- How does it benefit operators?
- What are the financial implications of network outsourcing?
- What are the strategic and operational benefits of outsourcing?
- Which operators have signed outsourcing and managed services deals?
- Are there certain countries or regions where operators have more fully embraced outsourcing than others?
- Why?
- How big is the outsourcing opportunity?
- Which companies are pursuing this business?
- How do they compete amongst each other?
- How do they differentiate themselves?
- How will network outsourcing shape the telecommunications industry overall?
- If more operators outsource their networks, how will the future look?
Who should read this report?
Telecom operators
- Assess the impact of network outsourcing on their own businesses
- Gain insights into how operator choices will impact the nature of competition and the
development of the industry
Equipment suppliers
- Find out how operators perceive benefits and risks of network outsourcing
- Analyze competitor positioning in market
Telecom regulators and administrations
- Gain insights into a trend that is transforming the industry
- Analyze future actions required of regulators
Investors and analysts
- Find out how network outsourcing will change operators’ cost structures
- Gain insights into the transformation of equipment manufacturers into service providers
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