‘The LTE Market is Forecast to Grow Rapidly to $68 Billion in 2016′ Says Visiongain Report

By Visiongain, PRNE
Tuesday, July 26, 2011

LONDON, July 27, 2011 -


Visiongain’s latest management research “Managed Services in LTE Era Report 2011-2016″ examines the market for managed services, with particular reference to the Long Term Evolution (LTE) boom.  This brand new report provides forecasts for managed services growth, market sizing and analysis of MSP (Managed Services Providers) prospects in the key geographical markets for the period 2011-2016.

The LTE market is a high growth category in the mobile industry and revenues over the forecast period will grow rapidly to $68 billion in 2016. In order to capitalise, infrastructure vendors are offering tailored managed services alongside their LTE product portfolio. Each tier 1 vendor is striving to gain an early movers advantage with LTE managed services.  

In 2011, the managed services contracts continue to grow in size, tenure and value. New contracts are having a transformative affect on the wireless value chain in general and operators in particular. The managed services market was around $55 billion in 2010, we believe the market is poised to reach $86 billion by 2016.

This report describes the managed services strategies for MNOs who are planning to deploy LTE.  In LTE environment, MNOs need to adopt a lean business model and overcome organisational limitations. This will help MNOs to reduce the payback period and maximise profits while remaining competitive.

Operators across the globe are embracing managed services particularly in the EMEA region, Asia Pacific and the Emerging markets of India and China. However, many US carriers view networks as a source of competitive advantage and do not want to embark on managed services strategy. Visiongain believes that these carriers will continue to manage the networks in-house until 2013, with LTE deployment providing the necessary cost saving needed to increase the EBITDA levels. We discuss these opinions and analyse their suitability, feasibility and acceptability.

Visiongain believes a properly structured and executed managed service for LTE networks will deliver between 10% and 20% OpEx savings, which in certain cases can have a real effect of increasing EBITDA by 8%.

For further information on the ‘Managed Services in LTE Era Report 2011-2016′ please click on:


Table of Contents

Executive Summary
E1. Managed Services are shaping the Wireless Value Chain
E2. The Dawn of the LTE Boom
E3. MSPs (Managed Service Providers) are transforming themselves to address the LTE Challenges
E4.Mobile Operators are Embracing New Business Models that offer OpEx Saving Opportunities
E5.Combined LTE and Managed Services Strategy can further bring down Cost per mega bit
E6.Managed Services will be at the Centre of LTE Business Models
E7.Survival of the Fittest in the Fast Growing Managed Services Market
E8.Highlights of the Report

1. Introduction
1.1 LTE: The Next Big CapEx/OpEx Driver
1.2 LTE Offers Opportunities to Explore New Business Models
1.3 Mastering the Value Disciple of Operational Excellence
1.4 Analysing Managed Services
1.4.1 Managed Services are Altering MNO’s Value Chain
1.5 Factors Fuelling the Growth of Managed Services
1.6 Aim of the Report
1.6.1 Questions Answered by this Report
1.7 Report Structure
1.8 Report Scope
1.9 Methodology

2. Managed Services in LTE Era
2.1 Defining Managed Services for LTE Networks
2.1.1 Exploring the Role and Responsibility of a Managed Service Provider Defining Managed Service Provider (MSP)
2.1.2 Activities that Come Under Managed Services Managed LTE Network Operations Benefits of Managed Network Operations Managed Network Operations Centre Capacity Management
2.1.3 Managed Services: Service Management BOSS: The Largest Components of Managed Service Can the Outsourcing of OSS layer Management Guarantee Improved Service Assurance? Managed Data Services Hosting of Platform, Application and Contents Benefits of Hosting to MNOs Managed Platform Outsourcing
2.1.4 Managed Services Strategies for LTE Networks
2.1.5 Managed Services: 3G and GSM Networks
2.1.6 The Managed End-to-End Services Operations Solution

3. Managed Services Value Chain Analysis
3.1 Identifying Managed Services Provider Categories
3.2 Top Infrastructure Vendors and their Foray into Managed Services
3.2.1 Global Infrastructure Sales Forecast to 2016
3.3 LTE Vendors and their Position in the LTE Market
3.4 Managed Services Providers
3.4.1 Ericsson’s Revenues from Managed Services in 2010 Ericsson Dominates the Managed Services Market
3.4.2 NSN NSN Acquires Motorola’s Assets Motorola’s Managed Service Preposition NSN’s Revenues from Managed Services
3.4.3 Huawei China Unicom Shanghai
3.4.4 Alcatel Lucent
3.4.5 ZTE
3.4.6 HP
3.4.7 Accenture
3.4.8 IBM
3.5 Other Managed Service Providers
3.5.1 Inter Systems IT Ltd
3.5.2 GTL
3.5.3 BT
3.5.4 MLL Telecom
3.6 Hosted Solution Providers
3.6.1 WIN
3.6.2 Motricity
3.6.3 Amdocs
3.7 Case Studies
3.7.1 NSN and SK Telecom
3.7.2 Transmode and Net4mobility
3.7.3 Ericsson and Clearwire
3.7.4 Ericsson and TDC
3.7.5 Etisalat Nigeria and Alcatel Lucent
3.7.6 Bharti Airtel and IBM
3.7.7 Ericsson and Telenor, Sweden
3.7.8 SAP and China Telecom
3.7.9 Orange and ZTE
3.7.10 Vodacom Tanzania and NSN

4.Market Developments in Managed Services
4.1Opportunities to Embrace New Business Models
4.2 Wholesale Business Model with LTE
4.2.1 How can Wholesale Players Serve the Outsourcing and Managed-services needs of MNOs?
4.2.2 Yota
4.2.3 Light Squared
4.3 A Market with Single Network
4.4 Managed Data Services
4.5 Drivers of Data Revenue for MNO
4. 5.1 Trends in Managed Data Ericsson links with Akamai for Mobile Content

5. Business Case for Managed Services
5.1 State of the Global Wireless Industry
5.2 MNOs and their Competitive Landscape
5.3 Market Analysis
5.3.1 Saturated Markets: Higher Revenues are not translating into higher Margins
5.3.2 Emerging Markets: Focus Shifts from Customer Acquisition to Customer Retention
5.4 Return on Investment (ROI) from LTE Networks and Managed Services Proposition
5.5 Deployment Time for Traditional and Hosted Solution
5.6 Payback Period Comparison between Traditional and Hosted Solution Approach
5.7 OpEx Savings from Managed Services
5.7.1 Cost Savings Scenarios
5.8 Managed Services Benefits for MNOs
5.8.1 Risk Share with Vendors
5.8.2 Reduce the need to partner with several content and application providers
5.8.3 Reduce CapEx and OpEx
5.8.4 Improve Bottom-line
4.8.5 Maintain and Improve Network Quality
5.8.6 Manage Resources Effectively
5.8.7 Improve cash flow
5.8.8 Improve Business focus
5.8.9 Capitalise on short technology lifecycle
5.9 Risk associated with Managed Services
5.9.1 Disruptions to Network Operations
5.9.2 Fixed contracts can lead to a deadlock
5.9.3 Vendor monitoring costs
5.9.4 Use of Single NOC
5.9.5 Failing to form relevant KPIs
5.9.6 Getting locked with Single Vendor
5.9.7 Vendor’s creation of pipeline for its own products
5.9.8 Losing technology expertise
5.9.9 Hosting may result in Revenues Loss
5.9.10 Additional risks with Managed Services and Hosting
5.10 Benefits of Managed Services When Applied to LTE
5.10.1 Remarkable TCO reduction
5.10.2 Fast roll-out of LTE Services and Coverage
5.10.3 Risk Share with Vendors
5.10.4 Improve Business focus
5.10.5 New Opportunities for Incumbents to Increase Revenues
5.10.6 Better Management of Legacy Networks
5.11 Opportunities and Threats to Managed Service Providers
5.12 Stakeholders in Successful Migration to Managed Services

6. Global Managed Services Market
6.1 Global Managed Services Market
6.2 Managed Services Market breakdown by Categories
6.2.1 Network Managed Services
6.2.2 Service-led Managed Services
6.3 Key Growth Areas for Managed Services
6.4 Managed Services Market Segmentation by Operator Type
6.4.1 Which Operators will outsource? MNOVs
6.4.2 New Entrants
6.5 Global Managed Networks Subscriber Base
6.6 Market Shares Controlled by Top Infrastructure Vendors
6.7 Analysing the Key Geographical Markets
6.7.1 US
6.7.2 Central and Latin America
6.7.3 Western Europe
6.7.4 Asia and Other Developing Economies India China
6.7.5 Africa
6.8 Drivers for Pursuing Managed Services
6.9 Managed Services Adoption
6.10 Analysing the CapEx Requirement for LTE

7. Conclusion and Recommendations
7.1 Need to Adopt Lean Business Model
7.2 Challenges facing Managed Services Vendors
7.2.1 Recommendations for Managed Service Providers
7.3 Some Questions to be considered by MNOs
7.3.1 What is the Difference between Outsourcing and Managed Services?
7.3.2 How do Managed Services affect Operator’s Position on the Wireless Value Chain?
7.3.3 Why are Vendors’ Pushing for Managed Services?
7.3.4 Why is operators’ core competence changing?
7.3.5 Is Managed Services a good Strategy in all Markets?
7.3.6 Why it is better to take Holistic approach to Managed Services?
7.3.7 Why Hosted solution is a Better Option for Some Operators?
7.3.8 How do Managed Service Providers Deliver Savings, while maintaining the Quality?
7.3.9 Why Managed Application Solution is the best way going forward?
7.3.10 Is there a difference between Managed Services and Hosting?
7.3.11 Why Managed Data Services are becoming Critical to MNO Existence?
7.3.12 Why MNOs need to Embrace Managed Services when LTE already offers Lower Cost per Mega Bit?
7.3.13 Can Managed Services help Operators to run their Legacy Networks?
7.3.14 What is End-to-End Managed Services Proposition?
7.3.15 What is the importance of SLA and KPIs in a Managed Services Contracts?
7.3.16 Which MSPs will emerge as Winners in LTE Managed Services Market?

Notes for Editors

If you are interested in a more detailed overview of this report, please send an e-mail to sara.peerun@visiongainglobal.com or call her on +44(0)207-336-6100

About visiongain

Visiongain is one of the fastest growing and most innovative independent media companies in Europe. Based in London, UK, visiongain produces a host of business-2-business conferences, newsletters, management reports and e-zines focusing on the Telecoms, Energy, Pharmaceutical, Defence, Materials sectors.


Visiongain publishes reports produced by its in-house analysts, who are qualified experts in their field. Visiongain has firmly established itself as the first port-of-call for the business professional, who needs independent, high quality, original material to rely and depend on. 

Or contact:
Sara Peerun
Tel: +44(0)20-7336-6100



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