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atiller
atiller
3/18/2015 | 12:11:53 PM
"Just beginning to replace their legacy IT systems"
This looks like wishful thinking to me.  Chinese operators have made continual investments in their OSS/BSS for many years and actually have very advanced systems (much less spaghetti code than most Western operators, and far ahead in real-time self service, contextual awareness and other hot IT areas).  The comments about customization are relevant, though.  The OSS/BSS business works in a very different way in China, and operators have heavily customized solutions.  But then again, if you have to customize your BSS for every operator in China it's still not too bad (China Mobile's subscriber base is almost 3 times the size of the whole US market on its own).
R Clark
R Clark
3/18/2015 | 10:23:04 AM
Re: ICT M&A
This all happened five or so years ago. The complaint wasn't about any specific customisations, just that they were from the POV of the foreign vendors labour-intensive, expensive, and not really necessary. The Chinese operators aren't known for their clever pricing and bundles, so you'd think they might have a point.
sarahthomas1011
sarahthomas1011
3/17/2015 | 12:12:00 PM
Re: ICT M&A
Interesting, R Clark. It seems like most of Ericsson's acquisitions in OSS had a different geography angle to them, but that makes sense for China in particular. Do you know what kind of customization they are looking for, in general?
R Clark
R Clark
3/16/2015 | 11:00:04 PM
Re: ICT M&A
This is pretty much the only way for foreign companies to get in to OSS/BSS in China. Most if not all of the big foreign companies have pulled out, partly because it's rigged against them, but also because the provincial operators demand extreme kinds of customisation which the local guys are happy to do but are hardly worth the while of the big players.
sarahthomas1011
sarahthomas1011
3/16/2015 | 1:12:58 PM
ICT M&A
Interesting that China has 1.285 billion mobile subscriptions, but is still at the beginning stages of updating its OSS/BSS. This makes the market incredibly important for vendors like Ericsson. Targeting China by aquiring an established company there gives it a foot-in-the-door and makes more sense than going it alone. Ericsson is clearly a fan of this M&A strategy, particularly for its ICT business.


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