Network Maintenance Outsourcing to Near $20 Billion by 2010

Mobile operator spending on network maintenance is set to increase 23% by 2010 as mobile networks expand their coverage. In 2005, Pyramid Research estimates that wireless operators worldwide spent US$19.5 billion on maintenance services and by 2010, that figure is estimated to rise to US$24 billion. The results come from Pyramid Research's report which compiles and analyzes numerous in-depth interviews with mobile operator executives worldwide.

"Growth in the number of subscribers on mobile networks is the primary driver behind these figures," comments Elizabeth Bramson-Boudreau, the report's author. "However, subscriber growth will be somewhat offset by lower per-subscriber maintenance costs."

Of the $19.5bn spent on maintenance services, $19.1bn will be outsourced to vendors. One of the reasons for outsourcing is complexity.

As one executive noted, "The network today can be extremely complicated. We have a veritable battalion of people working on maintenance. Problems could be related to our equipment or that of our vendors."

Posted to the site on 28th July 2006