Operator Network Maintenance Outsourcing to Equal $19.1bn by 2010

Pyramid: Mobile operator spending on network maintenance is set to increase 23% by 2010 as mobile networks expand their coverage. Wireless operators worldwide spent $US19.5bn on maintenance services and by 2010, that figure is estimated to rise to US$24bn.

Growth in the number of subscribers on mobile networks is the primary driver behind these figures. 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. New Frontier for Vendors: An Analysis of Network Services and Outsourcing, Publ 20060720