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Lead Analyst: Prachi Nema
Publication Date: 10/08/06
Pages: 179  

 
Description  

As operators look for innovative ways to gain competitive advantage and increase operating profits through lower OpEx and CapEx, 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? Purchase this report to find out.

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 report will tell you.

Visiongain has found that over the coming years operators will further 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?
How will the market evolve by 2011 on a regional level?
What is the total addressable market for Managed Services globally?
This 179-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.

Why you should buy this report:

Operators: Learn how you can benefit from Managed Services and what issues you will have to face. Read about case studies and experiences into operators that have undergone the Managed Services route.

Vendors: Gain insight into competitor solutions and strategies. Identify the types of operator likely to embark on a Managed Services strategy.

Consultants: Understand the current state of the market and how it will change and evolve in the future.
 

Table of Contents  
 
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

Chapter 1 Introduction and Overview

Figure 1: Traditional Operator Value Chain

1.1 Traditional Business Model

1.2 Changing Business Model

Figure 2: Changing Operator Value Chain

Table 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 Operational Excellence

1.2.5 Success of MNVOs

1.2.6 Focus on Relationship Marketing

1.2.7 Need for rapid deployment of new Products and Tariffs

1.2.8 Broadening Wireless Value Chain

1.2.9 Demand for Advanced Services and Applications

1.2.10 Flattening Growth

Figure 3: Business Case for Managed Services

1.3 What is Managed Service?

1.3.1 Is Managed Service same as Network Operations Outsourcing?

1.3.2 Defining Managed Services

13.2.1 Defining Managed Service Provider (MSP)

1.3.2.2 Activities that come under Managed Services

Table 2: Managed Services Solutions

1.4 Aim of the Report

1.4.1 Holistic Managed Service Framework

Figure 4: Managed Services Framework

1.5 Questions Answered by this Report

1.6 Report Structure

1.7 Report Scope

Chapter 2 Strategic Appraisal

2.1 Why Strategic Appraisal is essential before commencing a Managed Services Program?

2.2 Evaluate the Environment

2.2.1 Macro Environment (PEST Analysis)

Table 3: PEST Factors that Support Managed Services Strategy

2.2.1.1 Regional Analysis

2.2.1.1.1 Western Europe

Chart 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 Evaluate the Micro Environment

2.2.2.1 Five Forces Analysis

Figure 5: 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 and Tier 1 MNOs

2.2.3.3 MNVOs

2.2.3.4 Greenfield Operators

2.2.3.5 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's Culture

2.3.6 Company's Outsourcing Experience

2.3.7 Analyse the Core Competence

Table 4: Critical Questions that must be Considered by Operators

Table 5: Benchmarking guidelines for Managed Services Proposition

Table 6: Forming a Managed Services Strategy

Chapter 3 Identifying the Key Areas of Managed Services

3.1 High Level View of Managed Services

3.2 Outsourcing and its use in Telecoms Industry

3.2.1 Outsourcing Explained

3.2.2 Specialised Outsourcing: Managed Services

Table 7: Detailed list of Managed Services being used by Operators

3.2.3 Managed Services in IT an Context

3.2.4 Push from Telecoms Vendors for Managed Services

3.3 Traditional Managed Services Areas

3.3.1 Network Operations as Managed Services

3.3.1.1 NOC Operations

3.3.2 Network Optimisation

3.3.3 Capacity Management

3.3.4 Network Maintenance

3.4 Newer Forms of Managed Services

3.4.1 Managed Services for Convergent Networks

3.4.2 Hosting Services

3.4.2.1 IMS Hosting

Table 8: Elements of Hosting Services

Table 9: Categories of Hosted Services offerings by vendors

3.4.3 Type of Managed Hosting for Operators

3.4.3.1 Platform Hosting

3.4.3.2 Platform Operation outsourcing

3.4.3.3 POC/PTT as a hosted solution

Chart 2: PTT Revenues (2004-2011)

3.4.3.3.1 VeriSign's Managed PTT Solution

3.4.3.4 Mobile IM as Hosted Solution

Chart 3: Global MIM Services Revenues (2004-2011)

3.4.3.4.1 IXI Mobile

3.4.3.5 Location Based Services as Hosted Solution

Chart 4: Worldwide Location Based Services Revenues (2004-2011)

3.4.3.5.1 Genasys Hosted LBS Solution

3.4.3.6 Mobile Music as a Hosted Solution

3.4.3.6.1 Why Mobile Music as a Hosted Solution is becoming Popular

3.4.3.7 Hosted Mobile TV Solution

3.4.3.7.1 Benefits of hosted Mobile TV Solution

3.4.3.7.2 RealNetworks and Cingular

3.4.3.8 Hosted over the air (OTA) Technologies

3.4.3.9 Content and Media Management

Chart 5: Mobile Content Growth (2006-2011)

3.4.3.10 MMS as Hosted Solution

Chart 6: Global MMS Revenues (2004-2011)

3.5 New forms of Managed Services Solution

3.5.1 Service Adoption Management

3.5.2 Managed Security Services

3.6 How to Track and Identify the Areas for Managed Services?

Figure 6: Evaluate the Core Areas across the Value Chain

Table 10: Primary Functions in the Operators Value Chain

Table 11: Secondary Functions in the Operators Value Chain

3.6.1 Decide the Scope of Managed Services

3.6.2 Deciding the Course for Managed Services Strategy

Table 12: Top Level Considerations for Managed Services for Operators

Chapter 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

Chart 7: Hosting Services CAPEX/OPEX Model

Chart 8: Traditional Product launch Model (CAPEX/OPEX)

4.1.5 Improve the Bottom-line

4.1.6 Maintain and Improve Network Quality

4.1.7 Manage Network Complexity

4.1.8 Manage Resources Effectively

4.1.9 Improve cash flow

4.1.10 Improve Business focus

4.1.11 Capitalise on short technology lifecycle

4.1.12 Summary

Table 13: 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 it is better to take end-to-end approach to Managed Services

4.2.2 Why a hosted solution is a better option?

4.2.3 How can managed services providers make any improvements 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 Is a Managed Application Solution the best way going forward?

4.2.8 Operators' core competencies are changing

4.2.9 How does Managed Services effect 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 14: 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 9: Economics of Hosting

Chapter 5 Vendors and Solutions Selection

5.1 Managed Services Vendors

Table 15: Key MSPs

Table 16: Consultancy Companies in Managed Services

5.1.1 Ericsson

5.1.1.1 Ericsson's Managed Capacity Services

5.1.1.2 Erisson's Hosting Services

Table 17: Managed Capacity Contracts by Ericsson

Table 18: Ericsson's Managed Services Clients

Table 19: Ericsson's Hosting Services Customers

5.1.2 Motorola

5.1.2.1 Motorola's Hosting Services

5.1.2.2 Motorola's Performance in Managed Service Market

5.1.2.3 Recent contract wins

5.1.2.3.1 Wateen Telecoms

5.1.3 Nokia

5.1.3.1 Nokia's Mobility Hosting Solutions

Table 20: Nokia's Key Contracts for Managed Services

Table 21: Applications Hosted by Nokia

5.1.4 Codetoys

Table 22: Codetoy's Managed Services Customers

5.1.4.1 Mobile Content Provisioning Service

5.1.4.2 Mobile Content Provisioning Service for Content Providers and Portals

5.1.4.3 Mobile Application Hosting and Operator Integration Service.

5.1.4.4 Mobile Games Service for Connected Games

5.1.5 Alcatel

Figure 7: Alcatel's Managed Services Model

5.1.5.1 Alcatel's Hosting Solution

5.1.5.2 Alcatel's Key Contracts

5.1.6 Siemens

Figure 8: Siemens Managed Services and Network Care Proposition

5.1.6.1 Siemens’ Key Customers

Table 23: Siemen's Key Managed Services Customers

5.1.6.2 Siemens Hosting Solutions

5.1.6.2.1 Pricing Strategies for Hosting Solutions

5.1.7 Lucent

Table 24: Lucent's Managed Services Customers

5.1.7.1 Lucent's Hosted Solutions

5.1.7.1.1 Lucent’s Hosting Strategy

5.1.8 NEC

5.1.9 End2End

Table 25: End2End's Key Customers

5.1.9.1 End2End's Customers

5.1.9.2 MSN and End2End

5.1.9.3 End2End and Sony Network Services

5.1.10 Volantis

5.1.10.1 Volantis Operator solutions

5.1.10.2 Volantis Content Provider solutions

5.1.10.3 Service Provider Solutions

5.1.11 Harris

5.1.12 bcgi

5.1.13 Comverse

5.1.13.1 Comverse's Hosting Services

5.1.14 Verisign

5.1.14.1 VeriSign Mobile Alerts Service

5.2 Managed Application Services

5.2.1 Oplayo

5.2.2 Tyn Tec

5.3 Recent Market Developments in Managed Services

5.3.1 Vendors establishing NOC

5.3.2 Aircom and T-Mobile

5.3.3 SunCom

5.3.4 Maxis

5.3.5 SFR

5.3.6 Sunrise

5.4 Mobile Virtual Service Enablers

5.4.1 Benefits of the MVNE

5.4.1.1 Advanced MVNE Services

5.5 MSP for Content Providers

5.5.1 Air2Web

5.5.2 iTagg

5.5.3 Motricity

5.5.4 LogicaCMG

5.5.4.1 Ringback Tone ASP (Application Service Provisioning)

5.5.5 Cube 80 (Tribal Text)

5.5.5.1 WAP Hosting

5.5.6 Mobilaris

5.6 Summary

Table 26: Key Managed Services Vendor Profiles and Analysis of their Portfolio

Chapter 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 General rules

Chapter 7 Monitor and Control

7.1 Service Level Agreements (SLA)

7.2 Building flexibility

7.3 Benchmarking

Chapter 8 Assessing the Profitability from Managed Services: Market forecasts

8.1 Critical Success Factors

8.1.1 Select the right vendor

8.1.2 Form strong relationship with the vendor

8.1.3 Quality improvements

8.1.4 Building Flexibility, Scalability and Adaptability in the Managed Services Solution

8.1.5 Working out ROI with the vendor

8.2 Vendor Strategies

8.2.1 Focus on the right business model

8.2.2 Challenges and Barriers for Vendors

8.3 Pricing Models

Table 27: Costs involved in Managed Services

Table 28: Pricing Models for Managed Services

8.3.1 Fixed Pricing

8.3.2 Risk and Revenue Share Model (Gain-Share)

8.4 Time Frames for Managed Services

Figure 9: Time Frames for Managed Services Programme

8.5 Business Case for Managed Services

8.5.1 Market Analysis

8.5.1.1 Higher Revenues do not always translate to higher Profits in Saturated Markets

8.5.1.2 Emerging Markets

8.5.2 ROI

8.5.3 OPEX Savings

Chart 10: OPEX Savings as % of total OPEX

8.5.3.1 Cost Savings Scenarios

Chart 11: Cost and Profit analysis for the Network Operators

8.5.4 Opportunities for Vendors

Chart 12: Vendor Infrastructure Sales (2003-2011)

8.5.5 Market Share

Chart 13: Key Vendor Market Share in Managed Services (2006)

Chart 14: Key Vendor Market Share in Managed Services (2011)

8.5.5.1 Ericsson's Position

8.5.5.2 Nokia's Position

8.5.5.3 Siemens' Position

8.5.5.4 Motorola's Position

8.5.5.5 Other Players

8.5.6 Revenues Derived From Services by Key Vendors

Chart 15: Services Revenues for Key Vendors (2005)

Chart 16: Services Revenues for Key Vendors (2011)

Chart 17: Growth in Services Revenues (2005-2011)

8.5.7 Market Segmentation for Managed Services based on Region

Chart 18: Managed Services Market Segmentation by Region (2005)

Chart 19: Managed Services Market Segmentation by Region (2011)

8.5.8 Market Segmentation by Operator type

Chart 20 Managed Services Revenues by Customer Type (2005)

Chart 21: Managed Services Revenues by Customer Type (2011)

8.5.9 Market Potential by Region

8.5.10 Global Market Potential

Chart 22: Western European Market for Managed Services (2011)

Chart 23: Market Potential for Managed Services (2011)

8.5.11 Growth of Network Outsourcing

Chart 24: Network Related Outsourcing Growth (2006-2011)

8.6 Market for Managed Hosting will Increase

Chart 25: Hosting Market Size in Billion Euro (2005-2011)

Chart 26: Hosting Revenues by Region (2005)

Chart 27: Hosting Revenues by Region (2011)

8.6.1 Deployment Time Comparison between Traditional and Hosted solution Approach

8.6.2 Payback Period Comparison between Traditional and Hosted solution Approach

Chart 28: Time required to deploy PoC Solution (In-house Vs Hosted approach)

Chart 29: Payback period for MMS Solution (In-house Vs Hosted approach)

Chart 30: Cumulative Cash Flow Comparison (In-house Vs Hosted Approach)

8.6.3 Opportunities in Hosting Applications

8.6.3.1 Future for Mobile Hosting

Chart 31: Hosting Market Segmentation by Applications (2009)

Chart 32: Growth in IMS Hosting (2007-2011)

Chart 33: Hosting Market Segmentation by Operator type

8.6.4 Effect of Mergers on Hosting Market

8.6.5 How can Operators Enhance their position with Hosted Applications

Chart 34: W-CDMA Subscriber Growth in Million (2006-2011)

Chart 35: Worldwide Data ARPU in USD (2003-2011)

Chapter 9 Case Studies

9.1 Hutchison's Three (H3G)

9.1.1 H3G's strategy

9.1.2 H3G Italy

9.1.3 Three Scandinavia

Chart 36: H3G Scandinavia's Subscriber Growth

Chart 37: H3G's Revenue Growth

Chart 38: H3G Scandinavia's Data ARPU Growth (2004-2005)

9.1.3.1 Hosted Messaging Solution

9.1.3.2 Hosted PoC

9.1.3.3 Hosted Email

9.1.3.4 Benefits Derived by 3

9 2 Rural Cellular Corporation

9.3 Telia Sonera, Sweden

9.4 Vodafone, Netherlands

9.5 Vendor Case studies

9.5.1 Olista

9.5.1.4 Challenges and Barriers for Olista

9.5.1.5 Deployment by Cellcom

 Chapter 10 Conclusions

10.1 Need to Change the Business Model

10.2 Future of Managed Services

Chart 39: Percentage Increase in Operators opting for Managed Services (2006-2011)

10.3 Key Findings from the Report

Appendix A Lead author’s profile

Appendix B About visiongain

Appendix C Report evaluation form

organizations listed
3 Italy
3 Denmark
3 Sweden
3 UK
Absolute Music
Accenture
Adif
Alcatel
Alltel
Amena
Amena
Aspiro
Auna
BASE
Bcgi
Belgacom
Bharti Tele-Ventures
Bouygues Telecom
Brasil Telecoms
BT
Capgimini
Carolina West Wireless
caymanone
Centennial Wireless
Centertel
Chariton Valley Wireless Services
China Mobile
Cingular
Cisco
ClearMode
Codetoy
Cube80
Diveo
dtms
E-bay
EDS
Emitel
EMT
End2End
E-Plus
Ericsson
FashionTV
Fastlink
Fido
FT
Gemplus
Genasys
Ghana Telecoms
Golden State Cellular
GrameenPhone
Harris
HP
Huawie
HungaroTel
Hutchison Australia
Hutchison Essar
IBM
ICE
in&phone
Indigo Wireless
Invitel
IXI
Kamera
Lastminute.com
LogicaCMG
Lucent
Lycos
M1
Manx Telecoms
Maxis
Micrososft
Midwest Wireless
Mixipix
Mobilaris
MobileCom 
Mobilkom
Mobily
Mobinil
Mobistar
Monortel
Motorola
Motricity
MSN
Napster
Nawras
Nokia
Nortel
NTS
O2
Oi
Olista
Omnitel
Oni
ONI
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
STS GmbH
Surfkitchen
Sun Cellular
SunCom Wireless
Sunrise
Surfkitchen
Swisscom
Swisscom
Tele2
Telecoms Argentina
Telecoms Colombia
Telecoms New Zealand
Telefónica Móvil
Telemar
Telemar/Oi
Telford, Netherlands
Telia Mobile
TeliaSonera
Telstra
TIM
TMN
T-mobile
T-Mobile International
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