Network Outsourcing: Strategies and outlook: Industry Report

Network Outsourcing: Strategies and outlook

Product Type: Market Research Report
Published by: IDATE
Published: June 2007
Product Code: R221-173

Description

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

Table of Contents

1 Executive summary
2 Defining the network outsourcing opportunity: What is network outsourcing?; Major network outsourcing deals between operators and equipment suppliers; Why are operators doing this?
3 Analyzing the operators that are signing network outsourcing contracts: Tier-one global operators vs. mobile market leaders vs. wireline market leaders vs. mobile attackers vs. wireline attackers: For which groups and in which regions is this most popular? Why?
4 The benefits of outsourcing: What are the financial, operational, and strategic benefits of network outsourcing?; The financial benefits - a detailed analysis
5 Sizing the market: What will drive growth over the next five years?; Developed markets vs. emerging markets: The future outlook
6 Strategies of the big three equipment suppliers: Ericsson, Alcatel-Lucent, Nokia Siemens Networks: Understanding Ericsson’s current market leadership; Analyzing the future competitive land scape in a convergence world
7 Future outlook: If more and more operators outsource their networks, how will this impact the industry?

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