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The Business Case and Market Outlook for Outsourcing Network Operations and Services Hosting

Product Type: Market Research Report
Published by: Informa Media and Telecom
Published: July 2007
Product Code: R443-252
Description
New for 2007, Managed Services is an essential strategic report providing you with a comprehensive analysis of the growing opportunities within network operations and services hosting, and will provide you with business critical information within this growing market.

Key Coverage
  • Detailed market forecasts to 2012 - evaluate specific trends in regional markets, with revenue forecasts to 2012
  • In-depth trend analysis - get full analysis and measurement of the growing trend for telecoms operators to outsource the operations of their networks and services management and delivery
  • Independent case studies - gain an insight into the real experiences of managed services from an operator perspective
  • Expert future outlook - discover the key issues that must be addressed by operators who are considering outsourcing for the future
  • Key market drivers - identify and analyse the economic, technological and strategic drivers behind this trend of outsourcing
Market Data & Forecasts

Forecasts by service type include:
  • Global managed services revenues by region
  • Western European managed services revenues
  • Eastern European managed services revenues
  • North American managed services revenues
  • Latin American managed services revenues
  • Middle Eastern and African managed services revenues
  • Asia Pacific services revenues
  • Global managed services by vendor
Please Note: Informa requires that clients sign a confidentiality agreement prior to fulfillment of PDF email delivery for all PDF orders.
Table of Contents

Chapter 1

Exectutive summary

Chapter 2

Market Overview

Defining managed services

Figure 2.1: Managed services’ definition

Outsourcing (network operations)

Hosting

Out-tasking

Other services

The managed services portfolio

Figure 2.2: The Managed Services Portfolio

Outsourcing network operations

Outsourcing IT and OSS/BSS

Services hosting

The managed services value chain

Telecoms operators

Managed services providers

Figure 2.3: The key suppliers of managed services for telecoms operators

Network equipment vendors

Systems integrators

BSS/OSS specialists

Applications and services specialists

Growth in the managed services market

Figure 2.4: Examples of recent managed services contracts

Figure 2.5: Global managed services revenues, 2006-2012

Key drivers for growth of the managed services market

Demand side drivers

Figure 2.6: Telecom operators’ challenges/drivers for managed services

Faster response to market trends

Improved financial performance

Figure 2.7: Financial performance of selected mobile operators, 2003-2006

Manage (technology and market) complexity more effectively

Improve operational performance

Supply side drivers

Figure 2.8: Financial performance of major network equipment vendors, 2000-2006

Figure 2.9: Network equipment vendors moving up the value chain

Chapter 3

Outsourcing Newtwork Operations

The business case for outsourcing network operations

The benefits of outsourcing network operations

Cost savings through use of scale

Figure 3.1: The economics of outsourcing network operations

Cost savings through use of synergies

Figure 3.2: Sources of unnecessary duplication of effort eliminated by outsourcing

Better use of capital and resources

Faster time to market

Business transformation

The risks of outsourcing network operations

Loss of control

Loss of in-house expertise and fear of MSP ‘lock-in’

Viability of the MSP

The myth of managed services cost savings

Outsourcing network operations: what makes sense and what does not?

Figure 3.3: The main functional activities in network operations

Network planning

Vendor management

Network build and deployment

Build-operate-transfer/manage (BOT/BOM) contracts

Managed coverage and capacity contracts

Site acquisition and management

Network maintenance (field activities)

Figure 3.4: Multi-vendor maintenance support management

Figure 3.5: Cost savings from outsourcing network maintenance

Network operations (centralised activities)

Supply chain management

Network optimization

End-to-end outsourcing of network operations

Hosted networks

MVNOs - a special case of managed network operations?

Transfer of network assets

Negotiating and managing managed services contracts

Figure 3.6: The lifecycle of a managed services contracts

Choosing the right approach

Choosing the right partner

Negotiating the managed services contract

Managing the transition

Figure 3.7: Staff reactions and impact on productivity during the transition

Managing service delivery

Processes and procedures

Governance model

Figure 3.8: Typical governance model in managed services contracts

Systems and tools

People and organisation

Monitoring and control

Managing the business transformation

Critical success factors for outsourcing network operations

Implications for telecoms operators and industry structure

Figure 3.9: Identifying the operators most likely to benefit from outsourcing network operations

Figure 3.10: The future structure of the telecoms industry?

Chapter 4

Outsourcing Network Operations: Operator Case Studies

Figure 4.1: An overview of the operator case studies of outsourcing network operations

3 UK

Company overview and strategy

Managed services at 3

Figure 4.2: 3’s UK network is managed from Ericsson’s Network Operations Centre (NOC)

Strategic analysis

Bharti Airtel, India

Company overview and strategy

Managed services at Bharti Airtel

Figure 4.3: Bharti’s claimed benefits from its Managed Services projects

Strategic analysis

Brazil Telecom

Company overview and strategy

Managed services at Brazil Telecom

Strategic analysis

Lattelekom, Latvia

Company overview and strategy

Managed services at Lattelekom

Figure 4.4: Lattelekom’s principal network activities

Strategic analysis

ONE, Austria

Company overview and strategy

Managed services at ONE

Strategic analysis

Telecom New Zealand

Company overview and strategy

Managed services at Telecom New Zealand

Figure 4.5: Telecom and Alcatel operating model

Strategic analysis

Telkom South Africa

Company overview and strategy

Managed services at Telkom South Africa

Strategic analysis

Vodafone Netherlands

Company overview and strategy

Managed services at Vodafone Netherlands

Strategic analysis

Wateen Telecom, Pakistan

Company overview and strategy

Managed services at Wateen Telecom

Strategic analysis

Chapter 5

Services Hosting

The business case

The benefits of services hosting

Reduced capex and opex

Figure 5.1: The business case for service hosting

Faster time to market

Simpler business and technology operations

The risks of services hosting

Lack of control

Lack of in-house expertise

Viability of service provider

The myth of services hosting cost savings

Services hosting: what makes sense and what does not

Figure 5.2: Traditional and emerging types of hosted services

Figure 5.3: Value added service delivery functions and business models

Services and content delivery platform

Services development and content sourcing

Services and content management

Outsourcing IMS: a prime candidate for service hosting

Services hosting providers

Network equipment vendors

Ericsson

Nokia Siemens Networks

Alcatel-Lucent

IT systems integrators

Security as an outsourced service

Services hosting specialists and MVNEs

MVNE: a special case of services hosting

Choosing a services hosting partner

Operator case studies

Figure 5.4: An overview of the operator case studies of services hosting

Elisa, Finland

Company overview and strategy

Hosted services at Elisa

Strategic analysis

Mobitel, Slovenia

Company overview and strategy

Hosted services at Mobitel

Strategic analysis

Proximus, Belgium

Company overview and strategy

Hosted services at Proximus

Strategic analysis

SunCom Wireless, US

Company overview and strategy

Hosted services at SunCom Wireless

Strategic analysis

Unicel, US

Company overview and strategy

Hosted services at Unicel

Strategic analysis

Services hosting: critical success factors

Services hosting: implications for telecoms operators

Chapter 6

Managed Service Provider Strategies

Network equipment vendors

Figure 6.1: Comparison of network equipment vendors’ services businesses, 2006

Figure 6.2: Comparison of network equipment vendors managed services businesses, 2007

Figure 6.3: Vendor market share of managed services revenues, 2007 and 2012

Alcatel-Lucent

Company overview and strategy

Figure 6.4: Alcatel-Lucent results by segment, 2005 and 2006

Managed services offering and strategy

Customers

Figure 6.5: Alcatel-Lucent’s major managed services contract awards, May 2006-April 2007

Strengths and weaknesses

Opportunities and threats

Ericsson

Company overview and strategy

Figure 6.6: Ericsson results by segment and region, 2005 and 2006

Figure 6.7: Ericsson 1Q07 results by segment

Managed services offering and strategy

Figure 6.8: Ericsson Global Services

Customers

Figure 6.9: Ericsson’s major managed services contract awards, May 2006-April 2007

Strengths and weaknesses

Opportunities and threats

Huawei

Company overview and strategy

Managed services offering and strategy

Customers

Figure 6.10: Huawei’s managed services customers

Strengths and weaknesses

Opportunities and threats

Motorola

Company overview and strategy

Figure 6.11: Motorola results by segment, 2005 and 2006

Managed services offering and strategy

Customers

Figure 6.12: Motorola’s major managed services contract awards, May 2006-April 2007

Strengths and weaknesses

Opportunities and threats

Nokia Siemens Networks (NSN)

Company overview and strategy

Figure 6.13: Nokia results by segment, 2005 and 2006

Managed services offering and strategy

Customers

Figure 6.14: Nokia, Siemens and NSN major managed services contract awards,

May 2006-April 2007

Strengths and weaknesses

Opportunities and threats

Nortel Networks

Company overview and strategy

Figure 6.15: Nortel Networks results by segment and region, 2005 and 2006

Managed services offering and strategy

Customers

Strengths and weaknesses

Opportunities and threats

Applications and services specialists

Comverse

Company overview and strategy

Managed services offering and strategy

Customers

Strengths and weaknesses

Opportunities and threats

End2End Mobile

Company overview and strategy

Managed services offering and strategy

Customers

Strengths and weaknesses

Opportunities and threats

LogicaCMG

Company overview and strategy

Managed services offering and strategy

Customers

Strengths and weaknesses

Opportunities and threats

Others

Buongiorno - hosted content delivery and management

Volantis - hosted content management

QPASS - hosted content management and payments

Musiwave - hosted mobile music

MobiTV - hosted mobile TV

Netsize

Chapter 7

Forecasts and Market Outlook

Forecasting methodology

Global forecast for managed network services

Figure 7.1: Global managed network services revenues by region, 2006-2012

Figure 7.2: Global managed network services revenues by service type, 2006-2012

Figure 7.3: Vendor market share of managed services revenues, 2007 and 2012

Regional forecasts and analysis

Europe

Outsourcing network operations in Europe

Figure 7.4: European outsourcing network operations revenues, 2007-2012

Services hosting in Europe

Figure 7.5: European services hosting revenues, 2007-2012

North America

Outsourcing network operations in North America

Figure 7.6: North American outsourcing network operations revenues, 2007-2012

Services hosting in North America

Figure 7.7: North American services hosting revenues, 2007-2012

Latin America

Outsourcing network operations in Latin America

Figure 7.8: Latin American outsourcing network operations revenues, 2007-2012

Services hosting in Latin America

Figure 7.9: Latin American services hosting revenues, 2007-2012

Asia Pacific

Outsourcing network operations in Asia Pacific

Figure 7.10: Asia Pacific outsourcing network operations revenues, 2007-2012

Services hosting in Asia Pacific

Figure 7.11: Asia Pacific services hosting revenues, 2007-2012

Africa and the Middle East

Outsourcing network operations in Africa and the Middle East

Figure 7.12: African and Middle Eastern outsourcing network operations revenues, 2007-2012

Services hosting in Africa and the Middle East

Figure 7.13: African and Middle Eastern services hosting revenues, 2007-2012

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