Skip to main content

Mobile Operator Network Outsourcing Benefit

As mobile operators watch their bottom line, outsourcing has become a more acceptable approach to increasing profitability, as it offloads the cost burden to the partner firm. Operator savings vary, depending on the scope of the outsourcing relationship, but Pyramid Research estimates that outsourcing can reduce the cash costs of a typical mobile operator by 20�25 percent.

"Operator savings stem from reduced CAPEX through network sharing and effective asset management, as well as from OSS and network management outsourcing," comments report author Elizabeth Bramson-Boudreau.

The report compiles and analyzes numerous in-depth interviews with mobile operator executives worldwide. One executive noted, "The outsourcing deal got us a clear 20 percent saving on manpower costs. With additional immediate OPEX savings, our first year savings were in the region of 35 percent."

Pyramid Research expects mobile operators to increasingly take advantage of outsourcing. Pyramid is forecasting the total outsourcing opportunity for vendors - $51.5 billion in 2005 - to increase to $55.3 billion by 2010 for a 1 percent CAGR. However, when the two big slump areas � Network Build and Deploy and Network Design � are taken out, it is clear that the outsourcing opportunity is growing healthily, at an 8 percent CAGR.

Popular posts from this blog

Why 2025 Will Redefine Mobile Connectivity

As international travel rebounds to pre-pandemic levels in 2025, the mobile communication roaming market is at an inflection point. Emerging technologies and changing customer preferences are challenging traditional wholesale roaming agreements between mobile network operators (MNOs). The global wholesale roaming market is projected to more than double, from $9 billion in 2024 to $20 billion by 2028. This surge will be fueled by the expanding deployment of 5G Standalone (SA) technology, which enables real-time roaming connections and activity monitoring. But beneath this headline figure lies a complex landscape of regional variations and technological mobile service disruptions. Global Mobile Roaming Market Development Western Europe dominates inbound roaming connections, largely thanks to its Roam Like at Home (RLAH) initiative, which eliminates roaming charges among member countries.  Meanwhile, the Indian Subcontinent is emerging as a growth hotspot. Between 2024 and 2029, inbou...