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Cambridge, MA, July 20, 2006— Mobile operator spending on network maintenance is set to increase 23% by 2010 as mobile networks expand their coverage. In 2005, Pyramid Research estimates that wireless operators worldwide spent $US19.5bn on maintenance services and by 2010, that figure is estimated to rise to US$24bn. The results come from Pyramid Research’s report New Frontier for Vendors: An Analysis of Network Services and Outsourcing, which compiles and analyzes numerous in-depth interviews with mobile operator executives worldwide.
“Growth in the number of subscribers on mobile networks is the primary driver behind these figures,” comments Elizabeth Bramson-Boudreau, the report’s author. “However, subscriber growth will be somewhat offset by lower per-subscriber maintenance costs.”
Of the $19.5bn spent on maintenance services, $19.1bn will be outsourced to vendors. One of the reasons for outsourcing is complexity.
As one executive noted, “The network today can be extremely complicated. We have a veritable battalion of people working on maintenance. Problems could be related to our equipment or that of our vendors.”
For more information about our New Frontier for Vendors: An Analysis of Network Services and Outsourcing report or to speak to the author, please contact Amalia Vega at avega@pyr.com.
About Pyramid Research’s Vendor Services Program
Pyramid Research’s unique expertise in the area of network OPEX is derived from ongoing interviews and direct contact with key industry players. Its market-leading Vendor Services Program offers critical insight into the priorities fueling operator decision making, and helps vendors position themselves to attract network outsourcing and application hosting and development contracts from operators worldwide. The program segments market demand for outsourced and hosted services at the regional level, projecting the most lucrative opportunities, and provides vendors with direct feedback from their operator customers.
About Pyramid Research
For twenty years, Pyramid Research has helped companies in the converging communications, media and technology industries stay ahead of market trends, understand competitive threats and capitalize on opportunities. We advise the world’s leading telecoms equipment vendors, service providers, and the financial community on how to implement best practices, build offensive growth strategies, and drive profitability.
Press Contact:
Amalia Vega
Pyramid Research
avega@pyr.com
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