Carriers Ready for New Partners, Biz Models
The survey asked top executives within the communications industry, including service providers in the U.S. and United Kingdom as well as device manufacturers and companies in the machine-to-machine communications market, about a future in which trillions of devices are connected.
"Within Amdocs, we have really started to articulate how we see the connected world playing out for service providers and for service provider ecosystems," said Rebecca Prudhomme, director, market insight and strategy and for service provider ecosystems at Amdocs. "We work closely with a lot of our customers, helping them understand their strategies and how developments in the market will affect how they develop their networks and their ecosystems."
One immediate impact is an exploding number of customer sessions that service providers must manage and a booming number of third-party players with whom they need to partner, Prudhomme said.
The Amdocs survey showed that 90 percent of respondents believe that new business models and partnerships are critical to their future success, including those in which the service provider operates as a wholesaler and consumer Internet companies or content companies provide value on top of that service.
That can’t equate to a "dumb pipe" strategy, Prudhomme said, but rather an intelligent transport offering with high-value quality of service, customer experience and billing options.
Two-thirds of the Amdocs survey respondents said they understand that they may need to outsource operations in order to provide the kind of support that pervasive connectivity will require. Eighty percent said investment in network and network planning is their top area of concern in preparing for the "connected world" and other investment priorities included device activation, billing, charging, settlement and customer-directed self-service systems.
"We think service providers are realizing they can no longer invest in systems that operate in silos," Pruhomme said. "There has to be a comprehensive approach taken to their operations."
Most service providers will have to embrace multiple business models, depending on the market and the customer, Prudhomme said, and the survey shows they are ready to do that.
Service providers also identified specific industries as most promising for new business, including health care, consumer electronics, government and utilities, and are looking to develop services and business models specific to these segments, Prudhomme said.
— Carol Wilson, Chief Editor, Events, Light Reading