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