Tuesday, September 13, 2005

Nokia Global Network Operations Centre

Nokia will start a new operations centre that will take care of Nokia's entire networks clientele of mobile service providers globally. This centre will be founded in India and the choice is now between only two locations. Nokia offers managed services for 34 clients and has been helping operators with global services. More here.

I would see this as a coming trend in the telecommunications sector. By buying network management services, operators can lighten their balance sheets and cut total workforce. I believe that such virtual operators are able to expand the geographic reach of their brand without spending heavily on infrastructure. This will result on faster growth for virtual operators and those operators that are sticking into an old business model of building their own networks will lose out.

This will also make investments to network infrastructure produce better return on investment because the network manager can rent the network to multiple operators and there is no need to over invest to several separate networks. Will Nokia find a purpose for its massive cash-reserves from the field of network management?


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