Managed Services and Hosting Analysis & Forecasts Report 2008-2013

Table of Contents

• 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

• Figure 1.1: Traditional Operator Value Chain
• 1.1 Traditional Business Model
• 1.2 Changing Business Model
  • Figure 1.2: Changing Operator Value Chain
  • Table 1.1: 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 Success of MNVO' s
  • 1.2.5 Focus on Relationship Marketing
  • 1.2.6 Need for rapid deployment of new Products and Tariffs
  • 1.2.7 Broadening Wireless Value Chain
  • 1.2.8 Demand for Advanced Services and Applications
  • 1.2.9 Flattening Growth
    • Figure 1.3: Business Case for Managed Services
• 1.3 What is Managed Service?
  • 1.3.1 Is Managed Service the same as Network Operations Outsourcing?
  • 1.3.2 Defining Managed Services
    • 1.3.2.1 Defining Managed Service Providers (MSP)
    • 1.3.2.2 Activities that come under Managed Services
      • Table 1.2: Managed Services Solutions
• 1.4 Aim of the Report
• 1.5 Questions Answered by this Report
• 1.6 Report Scope

• 2.1 Why Strategic Appraisal is essential before commencing a Managed Services Programme?
• 2.2 Evaluate the Environment
  • 2.2.1 PEST Analysis
    • Table 2.1: PEST Factors that Support Managed Services Strategy
  • 2.2.1.1 Regional Analysis
    • 2.2.1.1.1 Western Europe
      • Chart 2.1: 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 Five Forces Analysis
    • Figure 2.1: 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 or (Large Operators)
    • 2.2.3.3 MVNOs
    • 2.2.3.4 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 Culture
  • 2.3.6 Company' s Outsourcing Experience
  • 2.3.7 Analyse the Core Competence
  • 2.3.8 Making a Strategic Choice
    • Table 2.2: Critical Questions that must be considered by Operators
    • Table 2.3: Benchmarking guidelines for Managed Services Proposition
    • Table 2.4: Forming a Managed Services Strategy

• 3.1 High Level View of Managed Services
  • 3.1.1 Outsourcing and its use in Telecoms Industry
  • 3.1.2 Outsourcing Explained
  • 3.1.3 Specialised Outsourcing: Managed Services
  • Table 3.1: Detailed list of Managed Services being used by Operators
  • 3.1.4 Managed Services in an IT Context
  • 3.1.5 Push from Telecoms Vendors for Managed Services
• 3.2 Traditional Managed Services Areas
  • 3.2.1 Network Operations as Managed Services
  • 3.2.2 Network Optimisation
  • 3.2.3 Capacity Management
  • 3.2.4 Network Maintenance
• 3.3 Newer Forms of Managed Services
  • 3.3.1Managed Services for Convergent Networks
  • 3.3.2 Hosting Services
    • Table 3.2: Elements of Hosting Services
    • Table 3.3: Categories of Hosted Services offerings by vendors
  • 3.3.3 Type of Managed Hosting for Operators
    • 3.3.3.1 Platform Hosting
    • 3.3.3.2 Platform Operation outsourcing
    • 3.3.3.3 POC/PTT as a hosted solution
  • Chart 3.1: PTT Revenues (2008-2013)
  • 3.3.3.4 Mobile IM as Hosted Solution
  • Chart 3.2: Global MIM Services Revenues (2008-2013)
  • 3.3.3.5 Location Based Services as Hosted Solution
    • Chart 3.3: Worldwide Location Based Services Revenues (2008-2013)
  • 3.3.3.6 Mobile Music as Hosted Solution
    • 3.3.3.6.1 Why Mobile Music as Hosted Solution is becoming Popular
  • 3.3.3.7 Hosted Mobile TV Solution
  • 3.3.3.8 Hosted over the air (OTA) Technologies
  • 3.3.3.9 Content and Media Management
    • Chart 3.4: Mobile Content Growth (2008-2013) 3.3.3.10 MMS as a Hosted Solution
    • Chart 3.5: Global MMS Revenues (2008-2013)
• 3.4 New forms of Managed Services Solution
  • 3.4.1 Service Adoption Management
  • 3.4.2 Managed Security Services
• 3.5 How to Track and Identify the Areas for Managed Services?
  • Figure 3.1: Evaluate the Core Areas across the Value Chain
  • Table 3.4: Primary Functions in the Operators Value Chain
  • Table 3.5: Secondary Functions in the Operators Value Chain
  • 3.5.1 Decide the Scope of Managed Services
  • 3.5.2 Deciding the Course for Managed Services Strategy
    • Table 3.6: Top Level Considerations for Managed Services for Operators

• 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
  • 4.1.5 Maintain and Improve Network Quality
  • 4.1.6 Manage Network Complexity
  • 4.1.7 Manage Resources Effectively
  • 4.1.8 Improve cash flow
  • 4.1.9 Improve Business focus
  • 4.1.10 Capitalise on short technology lifecycle
  • 4.1.11 Summary
    • Table 4.1: 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 is it better to take end-to-end approach to Managed Services?
  • 4.2.2 Why hosted solution is a better option?
  • 4.2.3 How can managed services providers make any improvements at all 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 Why Managed Application Solution is the best way going forward?
  • 4.2.8 Why is operators' core competence changing?
  • 4.2.9 How does Managed Services affect 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 4.2: 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 4.1: Economics of Hosting

• 5.1 Managed Services Vendors
  • Table 5.1: Key MSP' s
  • 5.1.1 Ericsson
    • Table 5.2: Ericsson' s Managed Services Clients
    • 5.1.1.1 Ericsson' s Managed Capacity Services
    • 5.1.1.2 Ericsson' s Hosting Services
    • Table 5.3: 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 - Shanghai Unicom
  • 5.1.3 Nokia Siemens Networks (NSN)
    • 5.1.3.1 NSN' s Mobility Hosting Solutions
      • Table 5.4: NSN' s Key Contracts for Managed Services
    • 5.1.3.2 Recent contract wins - Deutsche Telekom
  • 5.1.4 Alcatel-Lucent
    • Figure 5.1: Alcatel-Lucent' s Managed Services Model
    • 5.1.4.1 Alcatel-Lucent' s Hosting Solution
    • 5.1.4.2 Recent contract wins - Bouygues Telecom
  • 5.1.5 Huawei
  • 5.1.6 NEC
  • 5.1.7 End2End
    • Table 5.5: End2End' s Key Customers
    • 5.1.7.1 End2End' s Customers
    • 5.1.7.2 MSN and End2End
  • 5.1.8 Volantis
    • 5.1.8.1 Volantis Operator solutions
    • 5.1.8.2 Volantis Content Provider solutions
    • 5.1.8.3 Service Provider Solutions
  • 5.1.9 Codetoys
    • Table 5.6: Codetoys' Managed Services Customers
      • 5.1.9.1 Mobile Content Provisioning Service
      • 5.1.9.2 Mobile Content Provisioning Service for Content Providers and Portals
      • 5.1.9.3 Mobile Application Hosting and Operator Integration Service.
      • 5.1.9.4 Mobile Games Service for Connected Games
  • 5.1.10 Harris Stratex
  • 5.1.11 XIUS-bcgi
  • 5.1.12 Comverse
  • 5.1.13 VeriSign
    • 5.1.13.1 VeriSign Mobile Alerts Service
  • 5.1.14 iLoop Mobile and OpenMarket
• 5.2 Mobile Virtual Service Enablers (MVNEs)
  • 5.2.1 Benefits of the MVNE
    • 5.2.1.1 Advanced MVNE Services
• 5.3 MSP for Content Providers
  • 5.3.1 Air2Web
  • 5.3.2 iTagg
  • 5.3.3 Motricity
  • 5.3.4 Logica
    • 5.3.4.1 Ringback Tone ASP (Application Service Provisioning)
  • 5.3.5 Mobilaris
• 5.4 Summary
  • Table 5.7: Key Managed Services Vendor Profiles and Analysis of their Portfolio
• 5.5 Case Studies
  • 5.5.1 Hutchison' s 3 (3)
    • 5.5.1.1 3' s strategy
    • 5.5.1.2 3 Italy
    • 5.5.1.3 3 Scandinavia
      • 5.5.1.3.1 Hosted Messaging Solution
      • 5.5.1.3.2 Hosted PoC
      • 5.5.1.3.3 Hosted Email
      • 5.5.1.3.4 Benefits Derived by 3
  • 5.5.2 E-Plus, Germany
  • 5.5.3 Mobily, Saudi Arabia
  • 5.5.4 Vodafone, Netherlands

• 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 Monitor and Control
  • 6.4.1 Service Level Agreements (SLA)
  • 6.4.2 Building flexibility
  • 6.4.3 Benchmarking

• 7.1 Critical Success Factors
  • 7.1.1 Select the right vendor
  • 7.1.2 Form strong relationship with the vendor
  • 7.1.3 Quality improvements
  • 7.1.4 Building Flexibility, Scalability and Adaptability in the Managed Services Solution
  • 7.1.5 Working out ROI with the vendor
• 7.2 Vendor Strategies
  • 7.2.1 Focus on the right business model
  • 7.2.2 Challenges and Barriers for Vendors
• 7.3 Pricing Models
  • Table 7.1: Costs involved in Managed Services
  • Table 7.2: Pricing Models for Managed Services
  • 7.3.1 Fixed Pricing
  • 7.3.2 Risk and Revenue Share Model (Gain-Share)
• 7.4 Time Frames for Managed Services
  • Figure 7.1: Time Frames for Managed Services Programme
• 7.5 Business Case for Managed Services
  • 7.5.1 Market Analysis
    • 7.5.1.1 Higher Revenues do not always translate to higher Profits in Saturated Markets
    • 7.5.1.2 Emerging Markets
  • 7.5.2 ROI
  • 7.5.3 OPEX Savings
    • 7.5.3.1 Cost Savings Scenarios
    • Chart 7.1: Cost and Profit analysis for the Network Operators
  • 7.5.4 Opportunities for Vendors
    • Chart 7.2: Wireless Infrastructure Vendor Sales (2008-2013)
  • 7.5.5 Market Share
    • Chart 7.3: Key Vendor Market Share in Managed Services (2008)
    • Chart 7.4: Key Vendor Market Share in Managed Services (2013)
    • 7.5.5.1 Ericsson' s Position
    • 7.5.5.2 NSN' s Position
    • 7.5.5.4 Alcatel-Lucent' s position
    • 7.5.5.5 Motorola' s Position
    • 7.5.5.6 Other Players
    • 7.5.6 Market Segmentation for Managed Services based on Region
    • Chart 7.5: Managed Services Market Segmentation by Region (2008)
    • Chart 7.6: Managed Services Market Segmentation by Region (2013)
  • 7.5.7 Market Segmentation by Operator type
    • Chart 7.7: Managed Services Revenues by Customer Type (2008)
    • Chart 7.8: Managed Services Revenues by Customer Type (2013)
  • 7.5.8 Market Potential by Region
    • Chart 7.9: Western European Market for Managed Services (2008-2013)
  • 7.5.9 Global Market Potential
    • Chart 7.10: Market Potential for Managed Services (2008-2013) 7.5.10 Managed Network Services Potential
    • Chart 7.11: Market Potential for Managed Network Services (2008-2013)
• 7.6 Hosted Services Potential
  • Chart 7.12: Market Potential for Hosted Services (2008-2013)
  • 7.6.1 Deployment Time Comparison between Traditional and Hosted solution Approach
    • Chart 7.13: Time required to deploying PoC Solution (In-house Vs Hosted approach)
  • 7.6.2 Payback Period Comparison between Traditional and Hosted solution Approach
    • Chart 7.14: Payback period for MMS Solution (In-house Vs Hosted approach)
    • Chart 7.15: Cumulative Cash Flow Comparison (In-House Vs Hosted Approach)
  • 7.6.3 Opportunities in Hosting Applications
    • 7.6.3.1 Future for Mobile Hosting
    • Chart 7.16: Hosting Market Segmentation by Applications (2013)
    • Chart 7.17: Growth in IMS Hosting (2008-2013)
  • 7.6.4 How Operators can enhance their position with Hosted Applications?
    • Chart 7.18: Worldwide Data ARPU (2008-2013)

• 8.1 Need to Change the Business Model
• 8.2 Future of Managed Services
  • Chart 8.1: Percentage Increase in Operators opting for Managed Services (2008-2013)
• 8.3 Key Findings from the Report

• 3 Italia
• 3 Denmark
• 3 Sweden
• 3 UK
• Absolute Music
• Accenture
• Adif
• Alcatel-Lucent
• Alltel
• Amena
• Aspiro
• AT&T
• Auna
• BASE
• Belgacom
• Bharti Tele-Ventures
• Bouygues Telecom
• Brasil Telecoms
• BT
• Capgimini
• Carolina West Wireless
• caymanone
• Centennial Wireless
• Centertel
• Chariton Valley Wireless Services
• China Mobile
• Cisco
• ClearMode
• Codetoys
• Cube80
• Diveo
• dtms
• E-bay
• EDS
• Emitel
• EMT
• End2End
• E-Plus
• Ericsson
• FashionTV
• Fastlink
• Fido
• France Telecom
• Gemplus
• Genasys
• Ghana Telecoms
• Golden State Cellular
• GrameenPhone
• Harris Stratex
• HP
• Huawei
• HungaroTel
• iLoop Mobile
• Hutchison Australia
• Hutchison Essar
• IBM
• ICE
• in&phone
• Indigo Wireless
• Invitel
• IXI
• Kamera
• Lastminute.com
• Logica
• Lycos
• M1
• Manx Telecoms
• Maxis
• Micrososft
• Midwest Wireless
• Mixipix
• Mobilaris
• MobileCom
• Mobilkom
• Mobily
• Mobinil
• Mobistar
• Monortel
• Motorola
• Motricity
• MSN
• Napster
• Nawras
• Nokia
• Nokia Siemens Networks (NSN)
• Nortel
• NTS
• O2
• Oi
• Olista
• Omnitel
• Oni
• OpenMarket
• 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
• Sprint-Nextel
• STS GmbH
• Surfkitchen
• Sun Cellular
• SunCom Wireless
• Sunrise
• Surfkitchen
• Swisscom
• Tele2
• Telecoms Argentina
• Telecoms Colombia
• Telecoms New Zealand
• Telefonica Movil (Chile)
• Telemar
• Telemar/Oi
• Telford, Netherlands
• Telia Mobile
• TeliaSonera
• Telstra
• TIM
• TMN
• T-Mobile
• 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
• XIUS-bcgi