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Shared Delivery for Network Operations
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Shared Delivery for Network Operations

Cost Saving Models for Operators

The formation of new, emerging-market “regional champion” multi-country telecommunications network operators drives the demand for innovative, cross-country delivery platforms for network operations. Both strategic and economic aspects need to be taken into account when determining the optimal, resource-sharing re-design of network operations processes. At the same time, outsourcing options need to be evaluated. We conducted extensive studies and developed a comprehensive methodology for assessing various alternatives for providing network operations.

The traditional telecommunications network operator is still a country-focused entity with a high degree of vertical integration. However, rapid and complex technology migration, regulatory requirements, and increasing capital expenditures on one side and competitive environments, saturated markets, and pressure on margins on the other side advocate a new paradigm: focus on “critical success factors” and “key assets”. A growing number of outsourcing contracts is witnessing this trend.

Regional Champions have to optimize service delivery 

Currently, outsourcing continues to be contracted mainly with a national footprint, typically for field maintenance, and with the incumbent equipment supplier as service partner. However, we notice the emergence of a new breed of “regional champions”, multi-country operator groups often focused on emerging markets, eager to leverage their cross-country assets and optimize service delivery.

We expect operators that currently have autonomous operations in multiple countries (or provinces of larger countries) to embrace the new business models: players in the MEA region, and CIS/Russian telecoms holdings with their numerous affiliates. In addition to internal solutions, externalization of centralized delivery platforms to infrastructure vendors and independent managed services providers will take place, opening up investment opportunities into these new vehicles to the financial community.

In this paper we investigate various delivery options addressing the sharing and/or outsourcing of resources to achieve strategic and economic advantages in operating cross-country networks. We introduce a comprehensive model for estimating cost reductions, defined a set of target scenarios for a real-world case developed during our professional consulting practice, and discuss the results of our simulations for the various strategies, giving a recommendation for a regionalization strategy including managed services, and exploring two optional migration paths.

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