Network Sharing And Outsourcing Is In Many Telcos' Future

Network infrastructure is the basis for all funding of telco activities; as such, telcos must not only keep the cash cow alive, but also strengthen it. Management of network infrastructure is easily belittled as a subject for engineering nerds — but it must be treated as a key strategic matter.

Outsourcing the management of or sharing network infrastructure delivers many benefits, and we expect telcos to do this more and more in the years ahead. Telcos need to balance the simultaneous requirements of cost control, enhanced business flexibility, and innovation to incorporate the right approach to external network infrastructure management into their future strategies. Equipment vendors, meanwhile, must adjust their business to keep up and partner with traditional IT services providers.

Many more telcos are moving toward sharing or outsourcing some or all of their network assets and operations to partners or suppliers, becoming “telcos without networks.” This provides an opportunity for some telcos to shift their focus and resources to:

  • Cost control and transparency. The decision to share or outsource network assets and their operation is primarily driven by financial needs, in particular to bring the total cost of ownership down, spread expenditures over time, and allocate costs in a more transparent manner.
  • A better customer experience. Increases in data traffic require telcos to enhance their network and service delivery infrastructures and improve network coverage in order to maintain the quality of the customer experience. Moreover, telcos face regulatory requirements for improved rural network coverage, which can be more readily satisfied by network outsourcing.
Read more