Visiongain`s (www.visiongain.com) latest management research "Managed Services in LTE Era Report 2011-2016" examines the market for managed services, with particular reference to the Long Term Evolution (LTE) boom. This brand new report provides forecasts for managed services growth, market sizing and analysis of MSP (Managed Services Providers) prospects in the key geographical markets for the period 2011-2016.
The LTE market is a high growth category in the mobile industry and revenues over the forecast period will grow rapidly to $68 billion in 2016. In order to capitalise, infrastructure vendors are offering tailored managed services alongside their LTE product portfolio. Each tier 1 vendor is striving to gain an early movers advantage with LTE managed services.
In 2011, the managed services contracts continue to grow in size, tenure and value. New contracts are having a transformative affect on the wireless value chain in general and operators in particular. The managed services market was around $55 billion in 2010, we believe the market is poised to reach $86 billion by 2016.
This report describes the managed services strategies for MNOs who are planning to deploy LTE. In LTE environment, MNOs need to adopt a lean business model and overcome organisational limitations. This will help MNOs to reduce the payback period and maximise profits while remaining competitive.
Operators across the globe are embracing managed services particularly in the EMEA region, Asia Pacific and the Emerging markets of India and China. However, many US carriers view networks as a source of competitive advantage and do not want to embark on managed services strategy. Visiongain believes that these carriers will continue to manage the networks in-house until 2013, with LTE deployment providing the necessary cost saving needed to increase the EBITDA levels. We discuss these opinions and analyse their suitability, feasibility and acceptability.
Visiongain believes a properly structured and executed managed service for LTE networks will deliver between 10% and 20% OpEx savings, which in certain cases can have a real effect of increasing EBITDA by 8%.