Swedish equipment vendor Ericsson has been racking up the managed services contracts lately, on Thursday signing such a deal with Telefonica’s UK operation, O2.
US carrier Sprint said Thursday it has tapped Swedish vendor Ericsson in a network management deal worth between $4.5bn and $5bn.
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In the telecoms industry, outsourcing is usually referred to as ‘managed services’ and includes the transfer of more technical processes such as network operations and management, along with the hosting of services by third parties. Until recently, the network itself was seen as core business, and this view is still widely held, but increased competition from new players such as media owners, cable companies and internet service providers has meant that the term ‘managed services’ now covers a wider range of possibilities than in the past.
In the wake of a flurry of network outsourcing contracts across Europe, analysts note that managed services are reaching critical mass with revenues set to exceed $8bn by 2013.
If the last week is anything to go by running a network has become an increasingly optional component of a European mobile operator’s business.
A closer look at new outsourcing business models.
Brought to you by Alcatel-Lucent and Informa Telecoms & Media.
The World’s Biggest Operator by Revenues, Vodafone, put paid to rumours of a network sharing agreement with fellow UK carrier O2 on Wednesday, by announcing a managed services contract with Ericsson.
The strong growth in managed services that the telecoms industry has witnessed in recent years looks set to continue, with the market forecast to grow to over $34bn by 2013. According to figures released by analyst house and telecoms.com parent Informa Telecoms & Media this week, the key driver of this trend is that operators [...]
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The evolution to a converged world has put Service Providers under increasing market and competitive pressure. Responding to these market pressures requires solutions that enable a decreased time to market for newer, differentiated multi-media services while increasing customer service and focus. At the same time costs must be lowered and shareholder demands for increased value must be met. This combination can be very difficult to resolve.
When you hear of a company that provides service to 185 million cellular customers, your thoughts turn to large international carriers like Vodafone and Telefonica, or maybe a major market giant operating in China or India. In fact, 185 million is the number of subscribers supported by Swedish vendor Ericsson through its portfolio of managed services contracts, according to the firm’s own figures.
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