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Telecom Equipment Vendors Focus on Selling Services to Network Operators
Yankee Group, The, July 2004


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Outsourcing opportunities occupy both ends of the product and technology life cycle. On one end, many wireless carriers are outsourcing wireless Internet platforms, sharing fixed costs, and minimizing their risks. High handset costs, the low capacity of potential subscribers to pay, and their lack of familiarity with the Internet have made next generation wireless data services a risky, but high-potential proposition in Latin America.

At the other end, fixed-line carriers look at outsourcing their voice billing operations because they have struggled for years to deliver the quality and timeliness that customers and regulators demand.

This report discusses the emerging trend among equipment and platform vendors to promote their services portfolio to network operators. Outsourcing sales to a distribution network is common, at least for mobile services, and IT departments routinely outsource integration and data center services.


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