Product Type: Market Research Report
Published by: Pyramid Research
Published: December 2006
Product Code: R8-546Description Increasing competitive, operational, and financial pressures have sparked a radical rethinking of the operator’s role in the network across the world. Operators have been gravitating towards new “low-cost” business models, involving network outsourcing and hosting as a means of managing costs while they grow their businesses.
With most mobile equipment solutions quickly heading for commoditization, network services has also become more important for vendor business models, as the services opportunity straddles both OPEX and CAPEX budgets. Moreover, network services enable vendors to develop new, hard-to-replicate sources of competitive advantage.
To assess the network outsourcing and hosting opportunity in Latin America, we conducted extensive interviews with executives at mobile operators throughout the region. In this report, we share much of the insights into the areas where operators feel they could benefit most from a vendor partner and provide answers to the following key questions:
- What will it take for Latin American operators to embrace managed services?
- What can vendors bring to the table?
- What kinds of end-user service delivery platforms are operators planning to acquire in 2007 and where would they consider hosting?
- Are operators increasingly opting for turnkey solutions?
- What types of services and delivery modes of technical education services do operators demand?
- How much do operators invest in network and service optimization and how will the level of investments fare moving forward?
The trends, in our view, are unmistakable. The Latin American market is ripe for managed services (more than 50% of MNOs are interested), but suppliers will need to understand the carriers’ key requirements. This report offers the first insights into the carriers’ thinking.
Table of Contents
- Section 1. Executive Summary: MNOs Speak Up About Network Services
- Section 2. Scope and Methodology
- �� Scope and Methodology
- �� List of Interview Questions
- �� Definition of Network Functions
- Section 2. Business Challenges, Threats and Fixed-Mobile Convergence
- �� MNO concerns: growing too fast, marketing/network coordination and network
OPEX budgets
- �� FMC: Looking into it
- �� Implementing FMC: facing structural and market challenges
- Section 3. OPEX Trends and Barriers to Outsourcing
- �� OPEX/Revenue Ratio: Ups and Downs
- �� Outsourcing Roadblocks: Bad experiences, loss of control concerns
- Section 4. Investments in End-user Service Delivery Solutions and Hosting Trends
- �� End User Service Delivery Spend Is Set to Increase
- �� End User Service Delivery: Concerned About OPEX Implications
- �� Applications Hosting: From VoIP to Blackberry
- �� Applications Hosting: Mediation Solutions and Convergent ChargingSection 5. Investment Trends in Network & Service Management and Performance Solutions
- �� Network and Service Management: On the Way Up
- �� Network Management Platforms: Not Just Yet, but Under Evaluation
- �� Network Optimization and Assurance: A Priority
- �� Network Optimization: Flat to Solid Growth Ahead
- �� Operations and Process Consulting: A Small Portion of Network OPEX
- Section 6. Network Deployment Investment Plans, Importance of Turnkey Solutions
- �� Network Build and Deploy: On the Way Down
- �� Network Build and Deploy: Shifting to Coverage and Capacity Expansion
- �� Design and Planning: Expecting a 3G Boost
- �� Turnkey Solutions: Not Critical
- Section 7. Technical Personnel Training: Approach and Investments
- �� Training: An Outsourcing Opportunity
- �� Training Budgets: On the Way Up
- Section 8. Investment & Outsourcing Outlook in Network Operations and Maintenance
- �� Network Maintenance: Proportions Vary Widely
- �� Network Maintenance Budget: More Towards Outsourcing
- �� Outsourcing the NOC: Not Just YetSection 9. Vendor Selection Criteria, Opportunities for Outsourcing, Recommendations for
Vendors
- �� Evaluating Vendors: Key Criteria
- �� What to Outsource? MNOs are Open to Ideas
- �� How can vendors make outsourcing more attractive?
- Section 10. Key Takeaways
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