Communications service providers (CSPs) are spending more of their overall budgets on technology, and more of their technology budgets on software and cloud-based services. To track this spend, it is essential to dig deep into CSP opex budgets - not just capex.
- The opex opportunity for vendors is significant. One example: It is estimated that China Mobile spent ~60% of its $15bn in 2015 network operations opex on suppliers.
- Cost structures vary by business model and region; globally, network operations was the largest expense category in 2015. Two (currently) small cost categories are growing rapidly: content and IT operations.
- SG&A (sales, marketing, and G&A) costs, plus devices, averages to ~50% of opex for the global CSP market.
- Presents a new, standard taxonomy of operating expenses for CSPs.
- Evaluates opex trends, by segment, for 32 individual CSPs, accounting for half of the global market.
- Assesses how cost structures vary across region and business model.
- Identifies areas of opportunity for vendors and cost-control problems for service providers.
- What are the most important cost components for a CSP?
- How have those costs changed over time? How do they vary by operator?
- Where are the main opportunities for vendors selling into CSP opex budgets?
- How does the growth of software and cloud services impact the capex/opex split?