Sunday, August 26, 2012

How do CSPs Spend IT Budget?

A new report by Johanne Mayer (pictured), Senior Analyst, and Larry Goldman, Partner, Head of Telecoms Software Research, Analysys Mason concludes that "Communications service providers (CSPs) spent USD119 billion on telecoms IT worldwide in 2010, which represents 6.2% of the telecoms revenue of USD1.9 trillion". 

"Our analysis shows that incumbent CSPs with fixed and mobile services spend seven times more than any other type of CSP (that is, fixed- or mobile-only) and that mobile CSPs in developed countries spend USD26 per subscriber per year on IT, compared with USD4 per subscriber per year for those in emerging countries".
"Spending on OSS/BSS accounted for half of total IT spending worldwide – USD59 billion in 2010 .. One-third of the money CSPs spent on IT in 2010,USD38 billion, was spent by the CTO or network/product group on SDPs and apps, and on network management systems (NMSs)".

See "A large portion of IT spending does not fall under the traditional IT budget: a third comes from the network or CTO budget" - here.

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