What Are Telcos Buying From Their Suppliers?
Introduction
As the global economy emerges from the economic downturn, Ovum forecasts that telco investment levels will return to growth in 2011, heralding increased opportunities for suppliers. However, capitalizing on these opportunities will require suppliers to target the key areas of telco need, which are dependent on the dynamics in each market as well as the general trends affecting the industry.
Features and benefits
It is clear that there are still significant opportunities for suppliers, and we identify some key markets in this report, particularly where tier-2 and tier-3 telcos are under pressure to match the service offerings of tier-1 telcos.While price is still a key differentiator for suppliers, it is the telco-supplier relationship and the ability to offer an end-to-end service-wrap that is of most value to telcos as their business model evolves. This report offers some best practice advice on how suppliers can strengthen their initiatives in this area.
Your key questions answered
As the global economy emerges from the economic downturn, Ovum forecasts that telco investment levels will return to growth in 2011, heralding increased opportunities for suppliers. However, capitalizing on these opportunities will require suppliers to target the key areas of telco need, which are dependent on the dynamics in each market as well as the general trends affecting the industry.
Features and benefits
- Examines the trends in telco investment during 2010, and points the way to future areas of investment and opportunities for suppliers.
- Looks at how the telco-supplier relationship is changing, and offers best practice advice on what contributes to a successful engagement.
It is clear that there are still significant opportunities for suppliers, and we identify some key markets in this report, particularly where tier-2 and tier-3 telcos are under pressure to match the service offerings of tier-1 telcos.While price is still a key differentiator for suppliers, it is the telco-supplier relationship and the ability to offer an end-to-end service-wrap that is of most value to telcos as their business model evolves. This report offers some best practice advice on how suppliers can strengthen their initiatives in this area.
Your key questions answered
- What will be the key trends in telco network and IT investment in 2011?
- What will be the key areas of telco investment and the key supplier opportunities over the next 12–18 months?
SUMMARY
In a nutshell
Ovum view
Key messages
Capex is stabilizing and set to pick up, but opex is still under pressure
Network operator consolidation and network refresh set to pick up
Next-generation access will gain traction in the medium term
Managed network services growth set to continue as the model matures
Emerging markets to concentrate on BSS development
OSS, BI, and data management are key investment areas for mature market telcos
Recommendations for suppliers
Telcos require business solutions, not a product-push
Leading NEPs and IT suppliers should focus on end-to-end service offerings
Investment in emerging markets will grow significantly, while developed markets will be steady
China continues to present the biggest opportunity
Consolidation in developed markets will present considerable opportunities
INTRODUCTION
Objectives of this research
THE IMPACT OF MARKET CONDITIONS
Chronology of telco investments
Telco investment
Capital spending stabilizing
Operational expenditure reductions targeted by mature market telcos
Recession has shifted the telco mindset
TELCO INVESTMENT STRATEGIES
What are telcos spending their money on?
FUTURE TELCO INVESTMENT AREAS
What are telcos likely to invest in during the next 12–18 months?
Best practice advice
Expand telco accounts and win contract extensions
CONTRACT ANALYSIS
Network spend
Mobile access
Fixed access
Managed network services
IT spend
Business support systems (BSS)
Operational support systems (OSS)
Other operational IT contracts
APPENDIX
Methodology
Further reading
Definitions
Authors
Ovum Consulting
Disclaimer
In a nutshell
Ovum view
Key messages
Capex is stabilizing and set to pick up, but opex is still under pressure
Network operator consolidation and network refresh set to pick up
Next-generation access will gain traction in the medium term
Managed network services growth set to continue as the model matures
Emerging markets to concentrate on BSS development
OSS, BI, and data management are key investment areas for mature market telcos
Recommendations for suppliers
Telcos require business solutions, not a product-push
Leading NEPs and IT suppliers should focus on end-to-end service offerings
Investment in emerging markets will grow significantly, while developed markets will be steady
China continues to present the biggest opportunity
Consolidation in developed markets will present considerable opportunities
INTRODUCTION
Objectives of this research
THE IMPACT OF MARKET CONDITIONS
Chronology of telco investments
Telco investment
Capital spending stabilizing
Operational expenditure reductions targeted by mature market telcos
Recession has shifted the telco mindset
TELCO INVESTMENT STRATEGIES
What are telcos spending their money on?
FUTURE TELCO INVESTMENT AREAS
What are telcos likely to invest in during the next 12–18 months?
Best practice advice
Expand telco accounts and win contract extensions
CONTRACT ANALYSIS
Network spend
Mobile access
Fixed access
Managed network services
IT spend
Business support systems (BSS)
Operational support systems (OSS)
Other operational IT contracts
APPENDIX
Methodology
Further reading
Definitions
Authors
Ovum Consulting
Disclaimer
