Huawei, a leading global information and communications technology (ICT) solutions provider, has said that it noted new research identifying a strategic shift in direction by Communication Service Providers (CSPs) over the next five years.

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The research identifies that most, if not all, CSPs will embark on radical operational transformation projects within the next five years, driven by declining non data revenues, increased network and technology complexities and the necessity to evolve from network- to service-driven businesses with a focus on end-user experience.

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Kris Szaniawski, principal analyst for Informa Telecoms & Media explained: "While efficiency and cost controls are still identified as the most important issue for CSPs, our research indicates these organisations are at the brink of a complete change in strategic focus driven by the need to pursue new revenues. Business agility, customer experience and new digital service developments will all come to the fore in this increasingly pressurised and competitive industry and managed services are the natural way to implement these changes.

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"Managed services may not be new to the telecoms industry but what has changed is how operators find value in these services. The research shows that CSPs no longer see managed services as a way to simply save money and create efficiencies, but expect Managed Services Providers to create value in their own right and generate new revenue streams. The research reveals that 85 percent of operators see development of new revenue streams as their key objective and by association they expect this from their Managed Service Providers."

Recognising this trend, Huawei developed its "Total Value of Ownership" (TVO) approach to managed services going beyond managing day-to-day operations to include strategic guidance to CSPs to achieve operations transformation goals. With the TVO managed services approach, Huawei maintains focus on customer experience and increased revenues through innovations, robust process frameworks and additional service offerings.

With more than 330 contracts with operators globally, in the UK alone Huawei signed major managed services contracts with Telefonica UK and Three UK in the last year.

The Huawei Managed Services World Summit 2013 will take place on September 16 in London, UK where over 80 CSP delegates will gather to engage in discussion around operations transformation and the future of managed services. The event takes place before the Informa Managed Services World Congress in London from September 17.

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