Making a success of network sharing and managed services

Mobile network operators continually strive to generate innovative ideas to excite consumers and fuel growth in usage and revenues.  However, operators face significant challenges in maintaining their growth and margins.  Technological change, new forms of competition, regulatory pressure and novel service offerings all act to challenge the status quo.

Sharing a network with another operator or outsourcing it to a managed service provider are two approaches an operator may employ to manage its costs to better enable it to meet these challenges.

However attempts to share networks often break down during negotiations or fail to deliver the desired benefit - even when the shared network is then outsourced.  PA's network sourcing survey researches operators' experiences of network outsourcing and sharing.

Network sharing is a complex task and there are a number of challenges, such as:

• Business model - is there an optimal model that will suit both partners?

• Different partner requirements for service roll-out or service levels - what governance and charging arrangements will be needed?

• Asymmetric asset contribution or traffic - how should this be catered for in the ownership structure or charging arrangements?

• Legacy networks - should they be included in the network share at the start, later or never?

• Current vendor relationships - how will the network share be able to leverage the parent company relationships?

Many operators have outsourced all or part of their network design, build and operate functions to managed service providers but frequently face challenges such as:

• Poor performance – can the relationship be rescued or should it be transitioned in-house or to another provider?

• Further improvements – should the scope be increased or new “levers” introduced?

• Contract renewal – should it be extended, renegotiated, re-tendered or restructured?

PA brings a deep understanding of network sharing between operators and outsourcing to managed service providers. Through our extensive experience in delivering network outsourcing success we can provide support throughout the life cycle from initial strategy, through contract negotiation and supplier selection, to transition and transformation. 

We adapt our working style to suit yours and the situation you face. For example, we can work with your staff in an integrated team or, at the other extreme, act as an independent “auditor/arbitrator” of your managed service deal or network sharing arrangement.

To speak to one of experts about how you can achieve successful network sourcing, please contact us now.