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Gaining a Competitive Advantage through Agile Service Management and Operations
Changing Business Models
The Communication Service Provider (CSP) market is characterized by vertically integrated players with end-to-end ownership of network, operations and consumer businesses. In the near future, the communications industry landscape is expected to change and become a mosaic of specialized service providers pursing varying business models. This is the result of stagnating voice/data revenues, explosive growth in consumer content, rising demand for XaaS (Anything as a Service) among Small and Medium Businesses, and the emergence of new OTT (over the top) players.
CSPs have been weighing changes in their business models for the past decade, and have been evaluating options for expanding their reach up the value chain by providing select content services (walled garden model), leveraging their network and data centers to deliver a user experience superior to content service providers (open garden model), or remain focused on being a bandwidth and capacity provider (utility model).
While Tier 1 CSPs such as AT&T and Verizon will likely end up experimenting with all of these business models (depending on their lines of services), the tier 2 and tier 3 CSPs will likely have to make choices between the open garden and the utility model, and implement their strategies to remain competitive. A recent survey conducted by the TM forum in May 2011 indicates that 52% of CSPs would consider being primarily a provider of “dumb pipe” network services, while 48% state that they will consider a more diverse role of enabling content services provision.
Market forecasts indicate that 4G wireless services will experience a 3,400% 1 growth explosion in the number of people signed up between 2011 and 2015. On the wireline side, the $4.2 billion home entertainment market in 2011

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