Faced with competitive, operational and financial pressures, telecoms operators across the globe have gravitated towards new business and staffing models, says Pyramid Research.
In its report: "The new frontier for vendors: An analysis of network service and outsourcing", Pyramid says outsourcing network deployment could reduce mobile operators` costs by up to 25%.
In the network outsourcing and hosting space industry dynamics have sparked a radical rethinking of the operator`s role in the network, the report says. As the size and allocation of operator capital expenditure (capex) shifts dramatically, the operational expenditure (opex) increases, it says.
"Today, mobile operators spend three times more on opex than capex," the report says.
African scenario
Gateway Communications says Pyramid Research`s findings match developments in Africa, were telecoms operators are increasingly outsourcing their network deployment.
In an expanding mobile telecoms market, the first operator to establish coverage gains a huge advantage over subsequent entrants, because users are signed up to long contracts and there is inertia in moving to new networks, says Peter Gbedemah, CEO of Gateway Communications.
It is imperative, therefore, for operators to roll-out their technology as quickly as possible to beat the competition, he says.
An example where network deployment was effectively outsourced is Celtel Zambia, he notes.
Celtel Zambia extended its coverage from 35 districts to 72 districts in six months, says David Venn, MD of Celtel Zambia.
Subscriber numbers are showing strong growth, as rural subscriptions drive further urban subscriptions, he says.
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