Abstract
The use of Managed Services (“MS”) in telecommunication networks have continued to grow since its emergence more than 15 years ago. During these years, through our MS projects worldwide as well as our active involvement in international Managed Services events, Detecon has witnessed different phases of Managed Services development, and supported telecom operators all the way from making the right strategic decision, through tendering and vendor negotiation, to accompanying them on the journey of transformation and also evaluating the maturity level of the Managed Services delivery. This article revisits the key drivers behind MS and the expectations of telecommunications network operators. We also look at the latest MS development, recent MS offering and value propositions, the Managed Services partnership and the next phase of Managed Services, using our market insights as well as the results of our Detecon Managed Services Surveys from 2012 to 2017.
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Notes
- 1.
By “real MS contracts”, we refer to long-term arrangement usually accompanied by staff transfer, with MSP taking up all day-to-day and management responsibilities. One-off professional service contracts for turnkey projects are not counted, even if they last for several years.
- 2.
The estimation of 30 MS contracts on Plan and Build is based on Detecon’s knowledge and research of such contracts won by tier 1 vendors.
- 3.
Estimation of the number of on-going contracts is based on different sources:
Ericsson: 300+, same number stated in their Annual Report 2016;
Huawei: 200+, based on 450+ cumulative by end 2016 and assuming half are on-going (% of on-going to cumulative contracts ≈ 45% in year 2013);
Nokia: 200+, as stated on their website.
The three MSP had 85% market share in 2014 (see ABI Research 2014). Assuming similar share today, the total number of on-going telecom MS contracts is estimated to be over 900.
References
ABI Research. (2014). Network managed services competitive review, December 2014
Ericsson. (2017). Ericsson Annual Report 2016, February 2017.
Nokia, Press and Stock Exchange. Releases on Nokia’s website. Accessed October 02, 2017., from https://www.nokia.com/en_int/news/releases/2017/03/07/nokia-and-vimpelcom-sign-major-five-year-managed-services-contract-for-management-of-fixed-mobile-and-transport-networks
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Ma, PF., Schmitz, M. (2019). Managed Services 4.0: On the Journey from Cost Efficiencies to Business Transformation. In: Krüssel, P. (eds) Future Telco. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-77724-5_8
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DOI: https://doi.org/10.1007/978-3-319-77724-5_8
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