areas of carriers' business models like bandwidth face
increasing commoditization, carriers need to develop
alternate revenue streams.
According to Frost
& Sullivan, three key issues influence how well
carriers capture new opportunities. The most crucial
factors include defining which parts of a customer's
business they should take on, determining contract pricing
model and, resolving how to optimally balance customization
requirements of clients with efficiencies and economies
of scale resulting from standardization.
At present, network
outsourcing contracts are generally sourced through
system integrators or other consulting firms and then
subcontracted to carriers. While there is negligible
difference in revenues from direct contract versus subcontract,
true value for carriers centres on owning customer relationship
with supplying future services.