As operators look for more innovative ways to gain competitive advantage and increase operating profits, the outsourcing of network operation, application hosting and service delivery is gaining increasing traction. Is this something that will benefit your organisation? What is the most effective approach to take? One report has the answers you need to succeed in this.
Operators worldwide are becoming attracted by the cost saving and other advantages promised by adopting a Managed Services strategy. What exactly are these benefits and how can Managed Services help you achieve your business goals? What are the hidden costs and risks associated with this approach? This brand new in-depth report will tell you.
Visiongain has found that over the coming years, more and more operators will re-evaluate their value chain to identify their core competencies and use Managed Services for profitable growth. Hosting and Managed Services will converge as vendors shape their service strategies in the coming years. Are you prepared to take advantage of this growth?
The report answers all your key questions, including:
- What is driving the Managed Services market?
- What CapEx and OpEx savings can be realised through Managed Services?
- What are the typical timeframes of Managed Services projects?
- How does the speed of service deployment and problem resolution with Managed Services compare to more traditional methods?
- What effect does outsourcing mobile content have on data ARPU?
- How will the growth of applications hosting differ by PoC, MIM, MMS, LBS, TV and other services?
- Which companies are working towards IMS hosting?
- What role will Managed Content Enablers (MCEs) play?
- Which vendors are best positioned to benefit from the expected growth of Managed Services?
- How do vendor solutions compare to one another?
- What is the total addressable market for Managed Services globally?
This 140+ page report provides a comprehensive step-by-step framework that mobile network operators need to consider when deciding on and adopting their Managed Services strategies. In addition, it provides a detailed analysis of the market, including regional and global forecasts for network operations outsourcing, applications hosting and services delivery. Buy this report today to ensure you do not lose out on the significant market opportunity.
Plus other key questions answered such as:
- What % of operators will be using managed services and hosting by 2013, and what will be the associated revenues?
- Where are the biggest market opportunities for you?
- What current models exist, are they successful and which ones will account for the biggest market?
- What form of managed services and hosting are most likely to succeed over the short, medium and long-term?
Ericsson has officially announced more than 100 managed services contracts with operators worldwide by March 2008. According to Ericsson, it is managing networks that serve a total of 185 million subscribers worldwide through its managed services deals.
Who needs to read this report? Directors, VP and Senior managers in:
- Mobile/ Cellular carriers and operators
- Digital and Mobile content agencies
- Mobile Search companies
- Handset manufacturers
- Mobile content providers
- Managed service or hosting providers looking to tap into the mobile industry
The report provides global forecasts for future revenue generation and subscriber uptake of services in this area of the industry.
Please Note: Reports are sold based on the user licenses indicated. The Publisher delivers the report in Flash format via the publisher website, allowing viewing and printing capabilities only. Within one to two business days after placing the order, the Publisher will email the client with information on accessing their purchase. Prior to initiating fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.
Executive Summary
E1: Operators are adopting Innovative Strategies to gain Competitive
Advantage
E2: Operators are moving from Vertical to a Horizontal Structure
E3: Risk Sharing Model
E4: Business Proposition for Managed Services
E5: Cost benefit analysis for Managed Services
E6: The Current Position of Managed Services
E7: Future of Managed Services
1. Introduction
Figure 1.1: Traditional Operator Value Chain
1.1 Traditional Business Model
1.2 Changing Business Model
Figure 1.2: Changing Operator Value Chain Table
1.1: Factors Fuelling the Growth of Managed Services
1.2.1 Subscriber Saturation and falling ARPU
1.2.2 Increasing Network Complexity
1.2.2.1 Legacy Networks
1.2.3 Increasing Costs of Internalisation
1.2.4 Success of MNVO's
1.2.5 Focus on Relationship Marketing
1.2.6 Need for rapid deployment of new Products and Tariffs
1.2.7 Broadening Wireless Value Chain
1.2.8 Demand for Advanced Services and Applications
1.2.9 Flattening Growth
Figure 1.3: Business Case for Managed Services
1.3 What is Managed Service?
1.3.1 Is Managed Service the same as Network Operations Outsourcing?
1.3.2 Defining Managed Services
1.3.2.1 Defining Managed Service Providers (MSP)
1.3.2.2 Activities that come under Managed Services Table
1.2: Managed Services Solutions
1.4 Aim of the Report
1.5 Questions Answered by this Report
1.6 Report Scope
2. Strategic Appraisal
2.1 Why Strategic Appraisal is essential before commencing a Managed
Services Programme?
2.2 Evaluate the Environment
2.2.1 PEST Analysis
Table 2.1: PEST Factors that Support Managed Services Strategy
2.2.1.1 Regional Analysis
2.2.1.1.1 Western Europe Chart 2.1: Typical Western European Savings
from Network Related Managed Services
2.2.1.1.2 US
2.2.1.1.3 Asia Pacific, Latin America and Africa
2.2.2 Five Forces Analysis
Figure 2.1: Five Forces Analysis for Network Operators
2.2.3 Sector Analysis
2.2.3.1 New Entrant Sector (Tier 2 operators)
2.2.3.2 Incumbents or (Large Operators)
2.2.3.3 MVNOs
2.2.3.4 Content Providers
2.3 Internal Analysis (Resources and Competence)
2.3.1 Tangible Resources
2.3.2 Network Infrastructure
2.3.3 Legacy Systems
2.3.3.1 2G Networks
2.3.4 Skilled Workforce
2.3.5 Company Culture
2.3.6 Company's Outsourcing Experience
2.3.7 Analyse the Core Competence
2.3.8 Making a Strategic Choice
Table 2.2: Critical Questions that must be considered by Operators
Table 2.3: Benchmarking guidelines for Managed Services Proposition
Table 2.4: Forming a Managed Services Strategy
3. Identifying the Key Areas of Managed Services
3.1 High Level View of Managed Services
3.1.1 Outsourcing and its use in Telecoms Industry
3.1.2 Outsourcing Explained
3.1.3 Specialised Outsourcing: Managed Services Table
3.1: Detailed list of Managed Services being used by Operators
3.1.4 Managed Services in an IT Context
3.1.5 Push from Telecoms Vendors for Managed Services
3.2 Traditional Managed Services Areas
3.2.1 Network Operations as Managed Services
3.2.2 Network Optimisation
3.2.3 Capacity Management
3.2.4 Network Maintenance
3.3 Newer Forms of Managed Services
3.3.1Managed Services for Convergent Networks
3.3.2 Hosting Services
Table 3.2: Elements of Hosting Services
Table 3.3: Categories of Hosted Services offerings by vendors
3.3.3 Type of Managed Hosting for Operators
3.3.3.1 Platform Hosting
3.3.3.2 Platform Operation outsourcing
3.3.3.3 POC/PTT as a hosted solution
Chart 3.1: PTT Revenues (2008-2013)
3.3.3.4 Mobile IM as Hosted Solution
Chart 3.2: Global MIM Services Revenues (2008-2013)
3.3.3.5 Location Based Services as Hosted Solution
Chart 3.3: Worldwide Location Based Services Revenues (2008-2013)
3.3.3.6 Mobile Music as Hosted Solution
3.3.3.6.1 Why Mobile Music as Hosted Solution is becoming Popular
3.3.3.7 Hosted Mobile TV Solution
3.3.3.8 Hosted over the air (OTA) Technologies
3.3.3.9 Content and Media Management
Chart 3.4: Mobile Content Growth (2008-2013) 3.3.3.10 MMS as a
Hosted Solution
Chart 3.5: Global MMS Revenues (2008-2013)
3.4 New forms of Managed Services Solution
3.4.1 Service Adoption Management
3.4.2 Managed Security Services
3.5 How to Track and Identify the Areas for Managed Services?
Figure 3.1: Evaluate the Core Areas across the Value Chain
Table 3.4: Primary Functions in the Operators Value Chain
Table 3.5: Secondary Functions in the Operators Value Chain
3.5.1 Decide the Scope of Managed Services
3.5.2 Deciding the Course for Managed Services Strategy
Table 3.6: Top Level Considerations for Managed Services for Operators
4. Identify Desired Outcomes and Benefits
4.1 Benefits for Operators and Content Providers
4.1.1 Gain Competitive Edge
4.1.2 Risk Share with Vendors
4.1.3 Reduce the need to partner with several content and application
providers
4.1.4 Reduce CAPEX and OPEX
4.1.5 Maintain and Improve Network Quality
4.1.6 Manage Network Complexity
4.1.7 Manage Resources Effectively
4.1.8 Improve cash flow
4.1.9 Improve Business focus
4.1.10 Capitalise on short technology lifecycle
4.1.11 Summary
Table 4.1: Benefits that can be realised across different areas of the
value chain with Managed Service Solution
4.2 Desired Outcomes and Consequences
4.2.1 Why is it better to take end-to-end approach to Managed Services?
4.2.2 Why hosted solution is a better option?
4.2.3 How can managed services providers make any improvements at all
in terms of CAPEX?
4.2.4 How does Managed Services affect Operators Position in the Wireless
Value Chain?
4.2.5 Why are vendors pushing for Managed Services?
4.2.6 Why Operators can outsource Network Operations?
4.2.7 Why Managed Application Solution is the best way going forward?
4.2.8 Why is operators' core competence changing?
4.2.9 How does Managed Services affect Vendors Position in the Wireless
Value Chain?
4.2.10 What is the Difference between Managed Services and Hosting?
4.3 Risk associated with Managed Services
Table 4.2: Risks with Managed Services and Hosting
4.3.1 Disruptions to Network Operations
4.3.2 Fixed contracts can lead to a deadlock
4.3.3 Vendor monitoring costs
4.3.4 Use of single NOC
4.3.5 Failing to form relevant KPIs
4.3.6 Getting locked with Single Vendor
4.3.7 Vendor's creation of pipeline for its own products
4.3.8 Losing technology expertise
4.3.9 Hosting may result in Revenues Loss
Chart 4.1: Economics of Hosting
5. Vendors and Solutions Selection
5.1 Managed Services Vendors
Table 5.6: Codetoys' Managed Services Customers
5.1.9.1 Mobile Content Provisioning Service
5.1.9.2 Mobile Content Provisioning Service for Content Providers
and Portals
5.1.9.3 Mobile Application Hosting and Operator Integration Service.
5.1.9.4 Mobile Games Service for Connected Games
5.1.10 Harris Stratex
5.1.11 XIUS-bcgi
5.1.12 Comverse
5.1.13 VeriSign
5.1.13.1 VeriSign Mobile Alerts Service
5.1.14 iLoop Mobile and OpenMarket
5.2 Mobile Virtual Service Enablers (MVNEs)
5.2.1 Benefits of the MVNE
5.2.1.1 Advanced MVNE Services
5.3 MSP for Content Providers
5.3.1 Air2Web
5.3.2 iTagg
5.3.3 Motricity
5.3.4 Logica
5.3.4.1 Ringback Tone ASP (Application Service Provisioning)
5.3.5 Mobilaris
5.4 Summary
Table 5.7: Key Managed Services Vendor Profiles and Analysis of
their Portfolio
6. Implementing Managed Services
6.1 Define the Scope and Objectives for Managed Services Clearly
6.1.1 Scope
6.1.2 Objectives
6.2 Long-term Managed Services Strategy
6.3 Change Management
6.3.1 Big Bang Approach
6.3.2 Step by Step Approach
6.3.3 Other aspects of change management
6.4 Monitor and Control
6.4.1 Service Level Agreements (SLA)
6.4.2 Building flexibility
6.4.3 Benchmarking
7. Assessing the Profitability from Managed Services: Market
Forecasts
7.1 Critical Success Factors
7.1.1 Select the right vendor
7.1.2 Form strong relationship with the vendor
7.1.3 Quality improvements
7.1.4 Building Flexibility, Scalability and Adaptability in the
Managed Services Solution
7.1.5 Working out ROI with the vendor
7.2 Vendor Strategies
7.2.1 Focus on the right business model
7.2.2 Challenges and Barriers for Vendors
7.3 Pricing Models
Table 7.1: Costs involved in Managed Services Table 7.2: Pricing
Models for Managed Services
7.3.1 Fixed Pricing
7.3.2 Risk and Revenue Share Model (Gain-Share)
7.4 Time Frames for Managed Services
Figure 7.1: Time Frames for Managed Services Programme
7.5 Business Case for Managed Services
7.5.1 Market Analysis
7.5.1.1 Higher Revenues do not always translate to higher Profits
in Saturated Markets
7.5.1.2 Emerging Markets
7.5.2 ROI
7.5.3 OPEX Savings
7.5.3.1 Cost Savings Scenarios
Chart 7.1: Cost and Profit analysis for the Network Operators
7.5.4 Opportunities for Vendors
Chart 7.3: Key Vendor Market Share in Managed Services (2008)
Chart 7.4: Key Vendor Market Share in Managed Services (2013)
7.5.5.1 Ericsson's Position
7.5.5.2 NSN's Position
7.5.5.4 Alcatel-Lucent's position
7.5.5.5 Motorola's Position
7.5.5.6 Other Players
7.5.6 Market Segmentation for Managed Services based on Region
Chart 7.5: Managed Services Market Segmentation by Region (2008)
Chart 7.6: Managed Services Market Segmentation by Region (2013)
7.5.7 Market Segmentation by Operator type
Chart 7.7: Managed Services Revenues by Customer Type (2008)
Chart 7.8: Managed Services Revenues by Customer Type (2013)
7.5.8 Market Potential by Region
Chart 7.9: Western European Market for Managed Services (2008-2013)
7.5.9 Global Market Potential
Chart 7.12: Market Potential for Hosted Services (2008-2013)
7.6.1 Deployment Time Comparison between Traditional and Hosted
solution Approach
Chart 7.13: Time required to deploying PoC Solution (In-house Vs
Hosted approach)
7.6.2 Payback Period Comparison between Traditional and Hosted solution
Approach
Chart 7.14: Payback period for MMS Solution (In-house Vs Hosted approach)
Chart 7.15: Cumulative Cash Flow Comparison (In-House Vs Hosted Approach)
7.6.3 Opportunities in Hosting Applications
7.6.3.1 Future for Mobile Hosting
Chart 7.16: Hosting Market Segmentation by Applications (2013)
Chart 7.17: Growth in IMS Hosting (2008-2013)
7.6.4 How Operators can enhance their position with Hosted Applications?
Chart 7.18: Worldwide Data ARPU (2008-2013)
8. Conclusions
8.1 Need to Change the Business Model
8.2 Future of Managed Services
Chart 8.1: Percentage Increase in Operators opting for Managed Services
(2008-2013)
8.3 Key Findings from the Report
More Details
Companies Listed
3 Italia
3 Denmark
3 Sweden
3 UK
Absolute Music
Accenture
Adif
Alcatel-Lucent
Alltel
Amena
Aspiro
AT&T
Auna
BASE
Belgacom
Bharti Tele-Ventures
Bouygues Telecom
Brasil Telecoms
BT
Capgimini
Carolina West Wireless
caymanone
Centennial Wireless
Centertel
Chariton Valley Wireless Services
China Mobile
Cisco
ClearMode
Codetoys
Cube80
Diveo
dtms
E-bay
EDS
Emitel
EMT
End2End
E-Plus
Ericsson
FashionTV
Fastlink
Fido
France Telecom
Gemplus
Genasys
Ghana Telecoms
Golden State Cellular
GrameenPhone
Harris Stratex
HP
Huawei
HungaroTel
iLoop Mobile
Hutchison Australia
Hutchison Essar
IBM
ICE
in&phone
Indigo Wireless
Invitel
IXI
Kamera
Lastminute.com
Logica
Lycos
M1
Manx Telecoms
Maxis
Micrososft
Midwest Wireless
Mixipix
Mobilaris
MobileCom
Mobilkom
Mobily
Mobinil
Mobistar
Monortel
Motorola
Motricity
MSN
Napster
Nawras
Nokia
Nokia Siemens Networks (NSN)
Nortel
NTS
O2
Oi
Olista
Omnitel
Oni
OpenMarket
Optimus
Orange
Orange Switzerland
Orange UK
Orange France
Orange
Pantel
PCS Wireless
Polkomtel
Proximus
PT prime
Realnetworks
Reuters
RFI
Rogers Wireless
Rural Cellular Corp
Saudi Telecoms
casaNet
SBB
Seamobile
SFR
Siemens
Sonaecom
SONOFON
Sony BMG
Sprint-Nextel
STS GmbH
Surfkitchen
Sun Cellular
SunCom Wireless
Sunrise
Surfkitchen
Swisscom
Tele2
Telecoms Argentina
Telecoms Colombia
Telecoms New Zealand
Telefonica Movil (Chile)
Telemar
Telemar/Oi
Telford, Netherlands
Telia Mobile
TeliaSonera
Telstra
TIM
TMN
T-Mobile
T-online
Trueposition
T-Systems
TV Cabo
Tyntec
Unisys
Unwired
Verisign
Verizon Wireless
Virgin Mobile
Vivo
Vodafone
Vodafone Fiji
Vodafone Netherlands
Vodafone Ireland
Vodafone UK
Warid Telecoms
Warner Music International
Wataniya Telecoms
Wateen Telecoms
Western Wireless
WestLink
XIUS-bcgi
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Managed services and hosting Analysis and Forecasts Report 2008-2013
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