Mgmt World: Amdocs Airs Dumb Pipe Doubts

8:15 AM -- NICE -- Management World 2010 -- Here's a statement that should raise a few eyebrows: "After talking to service providers around the world… the risk of service providers becoming a ‘dumb pipe’ is vastly overstated."

That's the view of Denis McCauley of the Economist Intelligence Unit (EIU), who, at the behest of Amdocs Ltd. (NYSE: DOX), has been checking out carrier strategies as they face increasing competitive pressures from the over-the-top (OTT) crew, including the likes of Google (Nasdaq: GOOG) and Skype Ltd. . (See Amdocs Checks Out Carrier Strategies.)

"Despite the many challenges the industry faces, forward-looking service providers are finding ways to generate new revenue via new business models," says McCauley. "Service providers’ strategies are being defined and validated, and are achieving results."

Those business models include "smart pipe" and "efficient pipe" and another referred to as "Defender of the Realm."

Apart from promoting such carrier business model insights, Amdocs has been unveiling more regular announcements, including an OSS pack for FTTx players, and an overview of the impact its service fulfillment package has had at customer Slovak Telekom (20 percent opex cuts and 40 percent reduction in service provisioning times).

— Ray Le Maistre, International Managing Editor, Light Reading

sarahthomas1011 12/5/2012 | 4:35:44 PM
re: Mgmt World: Amdocs Airs Dumb Pipe Doubts

I think service providers will definitely be dumb pipes in a lot of scenarios, like on some smart grid and M2M apps, but that's not necessarily a bad, revenue-less thing. Well, I guess that's the "transformer" strategy. Dumb by another name?

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