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Service Bureaus, Outsourcing and Telecommunications Networks 2007 - 2012
a market research report
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How are wireless carriers, traditional carriers and the new VNOs shedding expense, operating more efficiently, and improving their bottom line? Service providers are increasingly outsourcing certain functions and relying on service bureaus and clearinghouses to handle such functions as billing, fraud prevention, customer service, and directory assistance.
For new operators, such as the MVNOs, outsourcing is all about speed-to-market and expensing non-core functions that can be purchased in the marketplace. Owning an entire network and all of its operations is no longer a necessity; building services from the ground-up can exhaust years of effort, during which time the market moves stranding capital assets.
Moreover, the complexity of operational architectures and the variety of services being offered (wireless, Internet, VoIP, and cable) means intricate brokering functions must be performed when interconnecting carriers. Hence, OSS interconnection clearinghouses and other types of interconnection services will emerge in the years ahead. In this study we document the potential to build network operations from purchased piece parts including SS7 clearinghouse, directory assistance, billing, and OSS inter-connection services.
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Report Excerpt
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1.1 The New Business Paradigm
A market-based approach became the dominant principal in telecommunications sector reform during the 1990s and, though often painful to stakeholders, the transition to increasing levels of competition continues today. Technology and market dynamics are radically transforming the provisioning and pricing of services, as well as service content. Thus, the business model based on providing transport facilities for voice service that are time and distance sensitive is fading fast, and incumbent carriers are looking for new business models.
Given the gradual demise of the public switched telephone network (PSTN) and lower margins associated with Internet protocol (IP) services, a fundamental strategy for carriers as they go forward must be cost reduction. This will require carriers to revisit all cost components of their business, putting outsourcing on the front burner.
Until now, carriers have considered outsourcing to be little more than a tactical form of reducing the cost of acquiring ancillary services. This must change, however. Carriers need shift focus from achieving incremental cost improvements in the 10- to 20-percent range to evaluating the entire range of their capabilities in order to define a winning outsourcing strategy in terms of a strategic process. This requires carriers to accept the need for unbundling their value-chain and for focusing on optimizing operations so as to achieve transformational cost savings between 30 and 60 percent, thereby securing future revenue growth.
From INSIGHT’s perspective, the legacy models are being replaced by models based on the delivery of integrated services where content will be value priced. While transport will be a commodity priced on a time and distance non-sensitive basis, it will include video, data, and voice in “triple” or “quadruple” packs.
If this bundled services model comes to pass, it will amount to a complete reversal of today’s business reality. INSIGHT’s analysis suggests that the delivery of content-rich service based on bundled delivery/access packages is the one most likely to succeed in the future, resulting in a momentum that favors the mobile and Internet service providers (ISPs). Despite the efforts of the telephony community to extend the life of the PSTN, it is now become clear that PSTNs are moribund and designed to fade into history.
IP networks are taking over, though in a more sophisticated form than that of the Internet version. It is in this context that it is important to emphasize that VoIP does not represent a new revenue stream for incumbent carriers and international carriers, but is instead a replacement for existing circuit-switched voice services with significantly lower margins.
In the context of the continued growth of VoIP, incumbent operator voice revenue declines are irreversible. In order to stay ahead of voice revenue declines, cost reduction is a necessity. Carriers thus have little choice but to take radical cost action. It is precisely this need that drives the market for outsourced services.
As this report will suggest, defining a comprehensive and successful outsourcing strategy is not easy, but when accomplished it can result in more than just revenue increases. Successful...
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Market Segmentation
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By Region
N. America
Total
Wireless Revenue
Addressable
Wireless Revenue
Addressable
Wireless OPEX
Wireless
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced Roaming Clearinghouse
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Wireless OEM Managed Deals
Total
Wireline Revenue
Addressable
Wireline Revenue
Addressable
Wireline OEM Managed Deals
Addressable
Wireline OPEX
Wireline
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Asia
Total
Wireless Revenue
Addressable
Wireless Revenue
Addressable
Wireless OPEX
Wireless
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced Roaming Clearinghouse
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Wireless OEM Managed Deals
Total
Wireline Revenue
Addressable
Wireline Revenue
Addressable
Wireline OEM Managed Deals
Addressable
Wireline OPEX
Wireline
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Europe
Total
Wireless Revenue
Addressable
Wireless Revenue
Addressable
Wireless OPEX
Wireless
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced Roaming Clearinghouse
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Wireless OEM Managed Deals
Total
Wireline Revenue
Addressable
Wireline Revenue
Addressable
Wireline OEM Managed Deals
Addressable
Wireline OPEX
Wireline
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
S. America
Total
Wireless Revenue
Addressable
Wireless Revenue
Addressable
Wireless OPEX
Wireless
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced Roaming Clearinghouse
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Wireless OEM Managed Deals
Total
Wireline Revenue
Addressable
Wireline Revenue
Addressable
Wireline OEM Managed Deals
Addressable
Wireline OPEX
Wireline
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Africa
Total Wireless
Revenue
Addressable
Wireless Revenue
Addressable
Wireless OPEX
Wireless
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced Roaming Clearinghouse
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Wireless OEM Managed Deals
Total
Wireline Revenue
Addressable
Wireline Revenue
Addressable
Wireline OEM Managed Deals
Addressable
Wireline OPEX
Wireline
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Caribbean
Total
Wireless Revenue
Addressable
Wireless Revenue
Addressable
Wireless OPEX
Wireless
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced Roaming Clearinghouse
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Wireless OEM Managed Deals
Total
Wireline Revenue
Addressable
Wireline Revenue
Addressable
Wireline OEM Managed Deals
Addressable
Wireline OPEX
Wireline
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
C. America
Total
Wireless Revenue
Addressable
Wireless Revenue
Addressable
Wireless OPEX
Wireless
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced Roaming Clearinghouse
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Wireless OEM Managed Deals
Total
Wireline Revenue
Addressable
Wireline Revenue
Addressable
Wireline OEM Managed Deals
Addressable
Wireline OPEX
Wireline
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Oceania
Total
Wireless Revenue
Addressable
Wireless Revenue
Addressable
Wireless OPEX
Wireless
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced Roaming Clearinghouse
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
Wireless OEM Managed Deals
Total
Wireline Revenue
Addressable
Wireline Revenue
Addressable
Wireline OEM Managed Deals
Addressable
Wireline OPEX
Wireline
Outsourcing by Components
Outsourced Billing
Outsourced Training
Outsourced Directory Service
Outsourced Operator Service
Outsourced Network Maintenance
Outsourced Customer Care
Outsourced OSS Clearinghouse
Outsourced SS7 Clearinghouse
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Table of Contents
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Chapter I
EXECUTIVE SUMMARY
1.1 The New Business Paradigm
1.2 What Lies Ahead
1.3 What to Outsource
1.4 The Market for Outsourcing Services
Chapter II
TELECOMMUNICATIONS SECTOR DYNAMICS
2.1 New Communication Paradigms
2.2 Telephony Faces Convergence and Mobility
2.3 Sector Headcount
2.3.1 Wireline Access
2.3.2 Mobile Service
2.3.3 The Internet
2.4 The New Business Paradigm
Chapter III
WHAT THE NEW TELECOMMUNICATIONS SERVICE PARADIGM MEANS FOR OUTSOURCING
3.1 The Rise of VoIP & the Demise of the PSTN
3.2 Wireline Voice Dynamics Spurs Outsourcing
3.3 Wireless Growth Requires Low-Cost Outsourcing Solutions
3.4 MVNO: A Dirty Word?
Chapter IV
EQUIPMENT VENDORS & OUTSOURCING
4.1 From Proprietary to Industrial Platforms
4.2 Wireline OEMs
4.2.1 Alcatel-Lucent
4.2.2 Nortel
4.2.3 Nokia-Siemens
4.2.4 Ericsson
4.2.5 Cisco
4.3 Wireless OEMs
4.4 How They Are Coping
4.4.1 Margin Stacking
4.4.2 Chipset Integration
4.4.3 Scale Economies
4.5 OEM Outlook
Chapter V
THE OUTSOURCING BUSINESS MODEL
5.1 An Industry in the Midst of Transformation
5.2 Operators
5.3 OEMs
5.3.1 Alcatel-Lucent
5.3.2 Ericsson
5.3.3 Nokia-Siemens
5.4 Systems Integrators
Chapter VI
OUTSOURCED SERVICE PROVIDERS
6.1 Strategy and Cost
6.2 Vendor Activity Classification
6.2.1 Signaling System #7 (SS#7) Interconnection
6.2.2 Operation Support System (OSS) Interconnection
6.2.3 Billing Outsourcing
6.2.4 Directory Service
6.2.5 Operator Services
6.2.6 Network Management Outsourcing
6.2.7 Performance Management
6.2.8 Security
6.2.9 Customer Care
6.2.10 Training
6.2.11 Wireless Roaming Clearinghouse
6.3 Vendor Activity Summary
6.3.1 Airpath
6.3.2 Al-Majaz
6.3.3 Amdocs
6.3.4 Argent Networks
6.3.5 BTSLogic
6.3.6 Call Genie
6.3.7 CGI
6.3.8 Cisco
6.3.9 Convergys
6.3.10 Electronic Data Systems (EDS)
6.3.11 Embarq
6.3.12 Ericsson
6.3.13 Hewlett Packard
6.3.14 IBM
6.3.15 ILD Telecommunications
6.3.16 Infosys Technologies
6.3.17 Intec
6.3.18 Intertex Data AB
6.3.19 Local Matters
6.3.20 LSSi
6.3.21 mobilePeople
6.3.22 NeuStar
6.3.23 Q1 Labs
6.3.24 SecureLogix
6.3.25 Syniverse
6.3.26 Tata Consultancy Services (TCS)
6.3.27 Tektronix
6.3.28 Telcordia
6.3.29 VeriSign
6.3.30 VoltDelta
6.3.31 Wipro
Chapter VII
THE MARKET FOR OUTSOURCED SERVICES
7.1 Addressing Network Transformation
7.2 The Wireless Services Outsourcing Markets
7.2.1 Worldwide Wireless Revenues
7.2.2 Addressable Wireless Revenues
7.2.3 Addressable Wireless OPEX
7.2.4 Wireless Outsourcing Component Revenue Estimates
7.2.4.1 Billing
7.2.4.2 Training
7.2.4.3 Directory and Operator Services
7.2.4.4 Network Maintenance
7.2.4.5 Customer Care
7.2.4.6 Wireless Roaming Clearinghouse
7.2.4.7 OSS and SS#7 Interconnection Clearinghouse
7.2.5 All Outsourcing Components
7.2.6 OEM Wireless Managed Deals
7.2.7 Indian System Integrators Wireless Managed Deals
7.3 The Wireline Services Outsourcing Market
7.3.1 Worldwide Wireline Revenues
7.3.2 Addressable Wireline Revenues
7.3.3 Addressable Wireline OPEX
7.3.4 Wireline Outsourcing Component Revenue Estimates
7.3.4.1 Billing
7.3.4.2 Training
7.3.4.3 Directory and Operator Services
7.3.4.4 Network Maintenance
7.3.4.5 Customer Care
7.3.4.6 OSS and SS#7 Interconnection Clearinghouses
7.3.5 All Wireline Components
7.3.6 OEM Wireline Managed Deals
7.3.7 Indian System Integrators Wireline Managed Deals
7.4 Summary and Outlook
Table of Figures
Chapter I
I-1 The Maturation of a Comprehensive and Successful Outsourcing Strategy
Chapter V
V-1 The Maturation of a Comprehensive and Successful Outsourcing Strategy
Chapter VI
VI-1 General Outsourcing Model
Table of Tables
Chapter I
I-1 Outsourced Services Market Estimate for Wireline and Wireless
Chapter II
II-1 Worldwide Wireline Subscribers by Region
II-2 Worldwide Wireless Subscribers by Region
II-3 Worldwide Internet Subscribers by Region
Chapter III
III-1 US Long Distance Voice Market
III-2 3G Average Vendor Wireless Handset Costs
III-3 Vendor Wireless Node-B Price Declines
III-4 MVNO Subscribers (Millions) and Percent of Market
III-5 Largest MVNO Operators
Chapter IV
IV-1 Global Telecommunications Equipment Market
Chapter V
V-1 Vendor Service Revenues
V-2 Select Indian System Integrators, All Outsourcing Revenue
V-3 Select Indian System Integrators, Telecom Outsourcing Revenue
Chapter VI
VI-1 Vendor Activity Summary
Chapter VII
VII-1 Global Wireless Revenue Forecast
VII-2 Estimated Revenues for the Addressable Wireless Market
VII-3 Estimated Addressable Wireless OPEX Outsourcing
VII-4 Outsourced Wireless Billing Market Estimate
VII-5 Outsourced Wireless Training Market Estimate
VII-6 Outsourced Wireless Directory Services Market Estimate
VII-7 Outsourced Wireless Operator Service Market Revenue
VII-8 Outsourced Wireless Network Maintenance Market Estimate
VII-9 Outsourced Wireless Customer Care Market Estimate
VII-10 Outsourced Wireless Roaming Clearinghouse Market Estimate
VII-11 Outsourced Wireless OSS Interconnection Clearinghouse Market Estimate
VII-12 Outsourced Wireless SS#7 Clearinghouse Market Estimate
VII-13 All Wireless Outsourced Services Market Estimate
VII-14 OEM Wireless Managed Deals Market Estimate
VII-15 Global Wireline Revenue Forecast
VII-16 Estimated Revenues for the Addressable Wireline Market
VII-17 Estimated Addressable Wireline OPEX Outsourcing
VII-18 Outsourced Wireline Billing Market Estimate
VII-19 Outsourced Wireline Training Market Estimate
VII-20 Outsourced Wireline Directory Services Market Estimate
VII-21 Outsourced Wireline Operator Services Market Estimate
VII-22 Outsourced Wireline Network Maintenance Market Estimate
VII-23 Outsourced Wireline Customer Care Market Revenue
VII-24 Outsourced Wireline OSS Interconnection Clearinghouse Market Estimate
VII-25 Outsourced Wireline SS#7 Clearinghouse Market Estimate
VII-26 All Wireline
Outsourced Services Market Estimate
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Pricing Information
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Hard Copy
Price
$ 3995
Electronic Copy Price
(PDF License Descriptions)
$ 4695 Single-User Printable PDF
$ 6995 6-Seat Printable PDF
$ 10000 Unlimited Corporate-Wide Distribution
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Telecom
Market
Research,
