[01-22-13] Telecom service providers will see only a 2 percent annual growth in their revenues between 2012 and 2018, according to a recent forecast published by research firm Ovum<\/b>, which identified the primary drivers behind this trend as increased over-the-top (OTT) competition, end users more interested in buying devices and apps than services and limited customer appetite for usage-sensitive billing.<\/p>\n
In the Ovum report released Jan. 22, the firm urged telecom service providers to focus on cost control to offset relatively flat revenue growth over the next five years. \u201cTelcos have the potential to gain greater economies through their global vendors in terms of network rollout, network operations, network optimization, customer experience, and service quality management,\u201d Ovum said in the study.
\n The firm believes that service providers are keeping a tight lid on capital expenditures as revenues moderate, but should still spend heavily on technology to meet demands from both their customers and the competition.
\n \u201cOperators are more smartly attacking their operating expense (opex) budgets, which opens new opportunities for vendors,\u201d Ovum Principal Network Infrastructure Analyst Matt Walker said in the report. \u201cHowever, to take full advantage of this growth opportunity, it\u2019s crucial that vendors have a true understanding of telco opex \u2013 something, which until now has been complicated by the lack of granularity and consistency in carrier financial reporting, amongst other barriers\u201d.
\n Ovum said a survey operating expenses across all operators revealed that network\/IT operations account on average for 18 percent of telco operating costs, of which 60 percent $126 billion is for spending internally, mostly using salaried staff.
\n \u201cIf you\u2019re an operator, this is a huge cost that needs to be managed,\u201d said Walker. \u201cAs operators look to lower operating risks and their cost bases, one option is additional services projects that involve the transfer of employees. However, to meet operators\u2019 needs vendors will have to develop far more complex solutions for carriers than in the past. Carriers need help monetizing their networks and retaining customers, not just deploying the equipment.\u201d
\n Walker concluded that while services projects don\u2019t come with guarantees of profitability, there is clearly some upside for vendors as carriers look to outsource more of their operations. \u201cAs telcos explore this option, vendors need to be creative and aggressive about winning the business, but should not forget to protect themselves.\u201d
\n <\/b>On the wireless network infrastructure side of the telco industry, research firm Signals and Systems Telecom <\/b>released a separate report Jan. 22 which claimed that the sector is currently in a phase of transition as mobile network operators seek to address increasing mobile traffic demands amidst global economic uncertainties.
\n \u201cThis paradigm shift is bringing new challenges and opportunities to infrastructure vendors,\u201d Signals and Systems Telecom said in their report. \u201cIn 2011, global 2G , 3G and 4G wireless infrastructure revenues stood at $45.9 billion. We estimate that these revenues will increase 8 percent year-over-year, reaching $49.7 billion by end of 2012, primarily driven by LTE investments. However, between 2012 and 2017, the market is expected to shrink to $48.6 billion.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
[01-22-13] Telecom service providers will see only a 2 percent annual growth in their revenues between 2012 and 2018, according to a recent forecast published by research firm Ovum, which identified the primary drivers behind this trend as increased over-the-top (OTT) competition, end users more interested in buying devices and apps than services and limited […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-81669","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/81669"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=81669"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/81669\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=81669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=81669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=81669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}