In 2007, managed services revenue has increased noticeably -- illustrating an elevated role for these services and validating forecasts presented in the recent ABI Research study, Managed Services for Mobile Networks. A large portion of future wireless hardware sales could well become a part of managed services agreements, as capacity management needs and other similar factors come into play.Managed network services provide a large and growing opportunity for mobile communications service providers to offload network operation tasks to third parties. Additionally, these services allow infrastructure equipment vendors to secure new revenue streams.
"Service providers are under pressure from several directions in 2007," says research director Lance Wilson. "They must focus as never before on maximizing profits and reducing costs, rather than just recruiting as many new subscribers as possible."
Operators are analyzing their business management and operations, realizing that competent external managed services providers can boost efficiency and correct problems regarding network operation, capacity and technology issues, and content. Because of this improvement, cost savings and smoother system operation will arise as well.
"In practice, managed services vendors primarily are the major wireless infrastructure equipment vendors," says Wilson. "This is logical, as they already have close relationships with service operators; they have deep pockets which are needed to succeed in this field; and they have always offered services relating to their own equipment installation and maintenance. Finally, they enjoy economies of scale because they may offer the same services to many different operators."
