It’s become abundantly clear to network providers that just providing connectivity is a difficult business model to maintain. Bandwidth demands are constantly increasing and shaving costs to maintain profitability is no longer a viable option. Providers must shift focus from simply delivering access to delivering services to the end user.
In a paper titled Next-Generation Managed Services: The Key to Business Transformation (PDF), authors from Alcatel-Lucent outline the best practices for evolving the cost/revenue structure of next-gen managed services. Some of these suggestions are daunting to communication-intensive businesses with no relevant experience. That’s why 90 percent are seeking outside help as they build mobility-enriched, IP-centric environments (source: Yankee Group).
Here’s a summary of some of the potential areas for growth and cost-cutting:
Build/operate/manage (BOM) for mobility — Requires the following services: design, planning, engineering, installation, integration, optimization test and turn-up, plus monitoring, fault management, field maintenance, repair, and performance and configuration management.
Managed infrastructure — Share risk of deployment with your trusted partner. No need to consume all the capital expenditures on day one. Use that freed-up cash to get more subscribers.
Managed end-to-end services operations — Your customer service-centric network now extends from your four walls all the way to the customer’s modem or set-top box. You need to manage service at each point across this extended network.
Full outsourcing — Also known as “virtual telco,” this step allows you to transfer assets to a managed services provider, letting you maintain greater accountability and make a smoother transition to your next-generation network.