Mobile carrier capital expenditures (CAPEX) on infrastructure will enter a progressive decline beginning in 2006 that will see infrastructure investments decrease from 47 percent of total operator CAPEX to 33 percent by 2009. While infrastructure spending will remain the largest slice of the CAPEX pie, Pyramid Research�s new report examines how vendors must adapt their business models to address the evolving mobile operator expenditure patterns to capture new, non-infrastructure investment opportunities. Report author Ozgur Aytar states, �The rapid growth of non-infrastructure spending is due to the combined effect of factors ranging from demand for additional capacity to convergence and network evolution towards next-generation networks (NGNs).� Operator investments are shifting from coverage-based radio network deployments towards advancements in the core network, new applications, and network professional services. Increasing network complexity and the fierce competitive market are creating new business opportunities outside of the traditional equipment business for vendors. The opportunities with managed services, systems integration, performance services, and other consultative services will experience rapid growth over the next several years.
The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without