Communication Service Providers to undergo significant operational transformation

The research identifies that most, if not all, CSPs will embark on radical operational transformation projects within the next five years, driven by declining non data revenues, increased network and technology complexities and the necessity to evolve from network- to service-driven businesses with a focus on end-user experience.

Kris Szaniawski, principal analyst for Informa Telecoms & Media explained: “While efficiency and cost controls are still identified as the most important issue for CSPs, our research indicates these organisations are at the brink of a complete change in strategic focus driven by the need to pursue new revenues. Business agility, customer experience and new digital service developments will all come to the fore in this increasingly pressurised and competitive industry and managed services are the natural way to implement these changes.

“Managed services may not be new to the telecoms industry but what has changed is how operators find value in these services. The research shows that CSPs no longer see managed services as a way to simply save money and create efficiencies, but expect Managed Services Providers to create value in their own right and generate new revenue streams. The research reveals that 85 per cent of operators see development of new revenue streams as their key objective and by association they expect this from their Managed Service Providers.”

Recognising this trend, Huawei developed its “Total Value of Ownership” (TVO) approach to managed services going beyond managing day-to-day operations to include strategic guidance to CSPs to achieve operations transformation goals. With the TVO managed services approach, Huawei maintains focus on customer experience and increased revenues through innovations, robust process frameworks and additional service offerings.
With more than 330 contracts with operators globally, in the UK alone Huawei signed major managed services contracts with Telefonica UK and Three UK in the last year.

Huawei’s Senior VP and President of the Assurance & Managed Services Business, Dr. Leroy Blimegger Jr., said: “Huawei’s market leading managed services offering is a result of our sustained investment in research and development while working closely with our customer partners to tailor solutions that not only add value but transform their core operations. In coming years it will become even more critical for mutually beneficial and collaborative relationships between CSPs and MSPs to deliver the standards of services expected by end-users in an increasingly competitive market place.

“By concentrating on end-user experience, Huawei developed the Total Value of Ownership model which helps CSPs transform their operations and business culture. Implementing converged network and IT operations, robust processes, enabled end-to-end service operations and maintaining focus on delivery of new revenue streams are all key to the model’s success.”