Will Outsourcing of Managed Services and Network Maintenance Make Telecoms More Competitive?


Managed services and outsourcing of wireless and wireline network operations has become an emerging trend in the global telecom industry. 

Here are a few recent examples:

-Last year, Embarq outsourced its Network Operation Centers (NOCs) to Nokia Siemens Networks (NSN).
-In a blockbuster deal announced a few months ago, Sprint announced it will pay Ericsson as much as $5 billion over seven years to manage its CDMA and iDEN wireless networks as well as its fixed-line network.
-Alcatel-Lucent has joint ventures with Indian operators Reliance and Airtel for mobile and fixed networks, respectively.
-Light Reading stated this week that Huawei has made significant strides in its managed services provisions in India. The Financial Times reports that BT will outsource the upkeep of its local phone network to a joint venture of Carillion and Telent, in a £1bn deal expected to be agreed in the next two months.
-WiMAX rural operator Open Range today announced an agreement with IP backhaul vendor Harris Stratex to run its NOCs for five years.
-Bharti Airtel signed a managed services deal with Comviva, making it the first telco in the world to have a managed services agreement for all its value-added services portfolio.

Rajeev Suri, Director of NSN’s managed services business unit says the global managed services is a $277 billion market.  Which carrier will be next to outsource its operations? Will that make them more competitive and profitable? And how much new managed services business will traditional network equipment vendors get?  We focus our attention on the new managed network players in this article.

The new kids on the Managed Network block include Huawei,  Carillion and Telent joint venture, and Harris- Stratex. 

For the complete article, please go to:   http://viodi.com/2009/08/22/outsourcing-managed-services/

Opinion:  The newer, greenfield operators that don’t have any experience in managing networks or operations might be better off by outsourcing network operations and/or managed services/ NOCs.

What’s your opinion?  Do you think Clearwire would do well by outsourcing its network maintenance and management services to another vendor?