Telecom Managed Services Are Transforming Carrier Business Models

­Network operators are turning to managed services and outsourcing not only to reduce their operating costs but also to transform business models to compete more effectively, a trend that will continue growing, according to a new report from Pyramid Research.

The telecom managed services sector is entering its third phase of development, characterized by a greater focus by operators on how to adapt to the changing dynamics of the industry and position themselves better for future opportunities, notes Elizabeth Bramson-Boudreau, Analyst at Large and author of the report. "Drivers of third-phase outsourcing include network sharing and the emergence of over-the-top (OTT) applications, such as social networking, that can, if allowed, bypass operators almost entirely," says Bramson-Boudreau.

Widespread adoption of telecom managed services will change the telecom landscape significantly in the coming decade, Bramson-Boudreau notes. As more carriers offload bigger portions of their network operations to trusted partners, telco business models will shift away from simple service provisioning, she explains. "The operator of the past - with full control over all network functions, monopolist-style attitudes toward customer service, and slow delivery of new services - is unlikely to exist in the future," she adds.

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­Network operators are turning to managed services and outsourcing not only to reduce their operating costs but also to transform business models to compete more effectively, a trend that will continue growing, according to a new report from Pyramid Research.

The telecom managed services sector is entering its third phase of development, characterized by a greater focus by operators on how to adapt to the changing dynamics of the industry and position themselves better for future opportunities, notes Elizabeth Bramson-Boudreau, Analyst at Large and author of the report. "Drivers of third-phase outsourcing include network sharing and the emergence of over-the-top (OTT) applications, such as social networking, that can, if allowed, bypass operators almost entirely," says Bramson-Boudreau.

Widespread adoption of telecom managed services will change the telecom landscape significantly in the coming decade, Bramson-Boudreau notes. As more carriers offload bigger portions of their network operations to trusted partners, telco business models will shift away from simple service provisioning, she explains. "The operator of the past - with full control over all network functions, monopolist-style attitudes toward customer service, and slow delivery of new services - is unlikely to exist in the future," she adds.