A recent New York Times article stunned millions of readers across the world.
It said two European companies that run the biggest wireless networks in the
world with a combined customer base of 355 mn are not top mobile operators such
as Vodafone, Telefonica or Orange. Rather the mighty Ericsson and Nokia Siemens
Networks are running the biggest wireless networks in the world. Cheers to the
two global telecom equipment vendors for grabbing the special attention.
Ericsson and Nokia Siemens Networks, in the past six years, have become the two
largest mobile network operators in the world. They grabbed the top position
after service providers started hiring them to manage services and operate their
networks.
The size of the managed services segment of the telecom sector in India is
around $3 bn. The scope of managed services will further grow considering the
appetite among operators to share base stations and hardware to cut both capital
and operational expenditure during the slowdown. Besides existing operators,
managed services will be a boon for greenfield operators, which are in the
market to battle for their survival and supremacy. Managed services throw open
several opportunities for the operator. As the management of network is passed
over to the equipment vendor, operators can focus on their core business of
providing services to their subscribers.
But can operators trust an external company which may be managing services of
their competitors too? If sharing of infrastructure is happening among rival
operators, why not trust an independent telecom equipment vendor? European
operators have shown the way. Some of the leading Indian operators have done it.
American operators will be gearing up for grabbing the managed services
opportunity. The main challenge for operators in India will be handling their
existing workforce hired to manage their network. Some equipment vendors in
Europe have offered solutions for this issue as well. For instance, Ericsson
will be hiring around 350 employees from Vodafone. Nokia Siemens Networks will
be adding 230 people from Orange. These people will be working with equipment
vendors to manage networks of other operators too. Despite having a workforce of
more than 40,000 employees to run Mumbai and Delhi circles, MTNL has opted for
outsourcing a minor part of its services.
Customers are serviced by operators. They are not bothered about NSN or
Ericsson. Managed services can ensure additional thrust on quality issues faced
by Indian operators. It will help in reducing opex and capex. Considering the
cut-throat competition among operators and the need to cut investments, India
gives hope for managed services players.
Baburajan K
baburajank@cybermedia.co.in
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