Transformation-driven

With a decisive shift from legacy networks already underway, telcos’ needs for smooth migrations to 4G LTE are loud and clear

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Mobile-led telecom services are undergoing a paradigm shift. From being used primarily for voice and SMS-based communications, mobile phones are more and more used for a growing variety of data-based over-the-top (OTT) services. If 3G prepared the ground for a data-led growth, 4G LTE, LTE-Advanced and other yet to arrive technologies are promising to make the data play dominant in a not too distant future.

In today’s age, literally everyone and everything is connected through data. And this has increased the amount of pressure on the networks of service providers.

Already, voice ARPUs have begun to fall, in what appears to be an irreversible trend. At the same time, operators are faced with an uphill task to differentiate themselves and maintain the quality-of-service expectations of their subscribers. Also, they must work to grow data revenues at faster rates so that a slowdown in voice revenue growth could be effectively offset.

Obviously, management and maintenance of telecom networks, which already comprise a heterogeneous mix of different generations of technologies, is more complex than it ever was. The need for outsourcing of network management is also therefore greater than ever before, as it allows telcos to focus on aspects related to business growth, branding & marketing, and consolidation, among other things.

In this background, the role of managed services providers such as Ericsson, Nokia and Huawei has become even more significant for the telcos. At the same time, the managed service providers too need to ensure that they have the right pools of skillsets and resources to stay relevant in view of a changing telecom landscape.

Changing market dynamics