The Indian managed services market is dominated by Ericsson and NSN, followed by Alcatel-Lucent, Huawei, and ZTE. However, with the market expected to consolidate in the next few years some vendors are likely to get squeezed out in the process.
“Within the next two to three years we are likely to only have room for three managed services vendors in India, as consolidation takes place. Beyond Ericsson, NSN, and possibly a third vendor we don’t really see a scenario for anyone having a profitable managed services business,” says Aditya Kaul, practice director, mobile networks at ABI Research.
The Indian mobile market is unique with around 17 operators operating across 22 circles, with some circles having as many as 14 operators. Due to the recent scandal emerging around 2G spectrum auctions, 122 licenses were canceled with several operators losing their licenses completely. As a result foreign operator partners like Etisalat, S Tel, Batelco, and probably Telenor are expected to leave the market.
Huawei and ZTE are amongst the vendors who won managed services deals with many of the operators that have had their licenses cancelled. Latest indications suggest that the re-auction of the 2G spectrum waves is expected to take place in 2013. Large portions of the re-auctioned spectrum are expected to be gorged up by the large operators, and possibly by newcomer RIL.
Kaul adds, “Ericsson and NSN will see increases in their market shares, as the traditional large operators will most likely continue their managed services relationships. There is always a chance of Huawei and ZTE competing on price, and while Ericsson and NSN might only see a squeeze in profit margins, Alcatel-Lucent is in a vulnerable position of losing business with their Reliance contract.”
ABI Research’s latest research report “Managed Services in the India” summarizes the history of managed services in India thus far, along with the future of managed services in the country, and identifies the next opportunities. This report is part of the Managed Services Research Service covering the traditional market network managed services and the emergence of Managed Services 2.0 including business transformation, customer experience management, and network optimization as a managed service.
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