Expanding borders through managed service hubs
25 May 2018 | Pathmal Gunawardana
As the traditional voice market declines, telecom companies are partnering with third party management providers to run their infrastructure. This model offers telecom providers several different opportunities to grow their businesses globally
The emergence of new communications platforms like SMS and VoIP have enabled constant, global connectivity. However, the rise of these platforms is also impacting revenues for the traditional voice market as traditional voice revenues are not being offset by the increase in IP Voice. In fact, IDC predicts that spending on fixed voice services will experience a six percent decline in 2018 and will represent less than 10 percent of the total telecom market by 2021.
In order to change this economic model, many companies in the telecom wholesale space have turned to third party management models. Roaming clearing houses and hubs have managed the inter-operator roaming process for many years, while co-location and hosting facilities have been managing infrastructure. Applying managed service models to inter-operator telecoms wholesale systems and processes creates opportunities to improve cost performance and drive business growth.
Another way to grow your voice business and keep costs down is through applying the principles of network function virtualisation (NFV). This approach makes it possible to build a profitable voice business through measures of efficiency, rather than top line revenue generation. Instead of focussing on building margin through incremental revenues, it allows instead for a focus on the cost element associated with investing in next generation network, services and systems.
A ‘Network-as-a-Service’ (NaaS) approach enables migration to IP service delivery without the need for heavy capital expenditure and without the need to tie service delivery to long term investment cycles. While this creates a dependency on the NaaS provider, the dual sourcing approach can ensure redundancy and business continuity, as well as the opportunity to work with service providers with complementary physical network assets, for better regional coverage as needed.
Putting It All Together
Tata Communications offers a managed service model that employs a combination of applications in the cloud, network virtualisation and service virtualisation. Our world class IP network provides predictable performance and service-level agreement (SLA), and we also offer a routing engine and fraud protection mechanism. Our model provides several opportunities for telecom providers to grow their businesses:
• Productivity and efficiency
This type of model aims to minimise capital expenditure and reduce cost. This creates a more flexible usage based approach to service consumption and eliminates capital investment. The model delivers quick access to Network-as-a-Service and Virtual PoP solutions, supporting growth of next-generation IP networking.
• Borderless growth with control
With an interest in expanding global routes, a virtual service approach delivers borderless growth options based on regional targets. New services, applications and tools can be brought on stream as needed to support a company’s business objectives. The dynamic nature of the model protects legacy investment while being able to access new services with a predictable cost outcome.
Communication services can be matched with the appropriate types of complementary tools and features. For example, voice services can be matched with fraud protection as well as routing optimisation. Reporting and analytics can be harnessed to add an extra dimension to network efficiency. With 3rd party KPIs being applied to monitor performance, a more predictable approach to performance also becomes possible. When connecting routes, you are also ensured that QoS and QoE are optimised and delivered on an end-to-end basis
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