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.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
ABI Research提供开创性的研究和战略指导，帮助客户了解日新月异的技术。 自1990年以来，我们已与全球数百个领先的技术品牌，尖端公司，具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.
Asia: +65 6950.5670