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Untapped Business Opportunity for Multiple System Operators (MSOs) to Support Small Cell Rollouts, New Research Finds

70 percent of mobile network operators (MNOs) willing to outsource backhaul;MSOs well placed to partner

AMSTERDAM, March 12, 2014 /PRNewswire/ -- At Cable Congress 2014 today, Amdocs, the leading provider of customer experience systems and services, released new research that explores the challenges involved in deploying and managing small cell networks, and identifies an opportunity for cable and satellite providers (also known as multiple system operators, or MSOs) to create new revenue streams through partnering with mobile network operators (MNOs) in the rollout of small cells and Wi-Fi networks.

The survey was conducted in January 2014 by Real Wireless – the leading independent advisory firm on wireless strategy and small cells – and includes 40 national and large regional MNOs, MSOs and converged wireless/wireline operators from North America, Europe and APAC. The report is available for download here.

Key findings include:

  • Small cell rollouts are being delayed: while 70 percent of MNOs surveyed plan to have significant small cell deployments by 2018, the majority predict slow rollout
  • MSOs have the necessary skills and experience for small cell deployment: challenges identified by MNOs in small cell rollouts include project management (65 percent), negotiation with partners (45 percent) and technical aspects (40 percent) – challenges that MSOs are well placed to overcome through their expertise in the installation and maintenance of dense networks in the field
  • MNOs willing to partner: to succeed, 70 percent of MNOs are prepared to use small cell networks rolled out by or owned by a third-party, such as an MSO
  • MSOs need to recognize and capitalize on their small cell expertise: 85 percent of MSOs believe that technical aspects of small cell rollout are different from their normal deployments and as a result only 40 percent of MSOs have plans to support small cell deployments this year. This is surprising given that 70 percent have either already launched or plan to launch public Wi-Fi, which has very similar requirements to small cells in terms of backhaul, power and installation
  • Automation tools will be critical: 85 percent of respondents believe that automation is critical or important for small cell deployment; however 80 percent believe their existing processes and tools are inadequate

"With mobile data traffic predicted to increase 11-fold from 2013-20181 small cells represent a critical element of an MNO's strategy to expand mobile network capacity and improve the overall user experience, yet rollout challenges are causing small cell deployment delay," said Charles Chambers, managing consultant with Real Wireless. "The research has identified that there is a clear business case for MSOs to partner with MNOs. MSOs have valuable skills and experience that can be applied to small cell deployments and MNOs are looking for these skills. However, for small cell rollout to be successful it's widely recognized that appropriate workflow and planning tools are required."

"Automation tools such as the Amdocs Small Cell solution address the technical challenges cited by service providers and reduce network design and deployment time and costs," said Rebecca Prudhomme, vice president of product and solutions marketing for Amdocs. "While this research indicates that there are many reasons why MSOs should partner with mobile service providers to provide backhaul, automated small cell rollout is also important for MSOs as they expand their Wi-Fi footprint and upgrade their Wi-Fi networks."

Visit Amdocs at Cable Congress 2014, RAI Amsterdam, Booth 12a in the Exhibit Hall where Amdocs will be demonstrating the Amdocs Small Cell solution, which provides end-to-end, catalog-driven planning, design and rollout for next-generation networks, including backhaul planning. Amdocs will also be showcasing, for the first time, the newly released Amdocs Smart Cell Placement solution which identifies where to locate small cells based on business value and experience hotspots.

1Cisco - VNI Mobile Forecast Highlights, 2013 – 2018, February 2014

Supporting Resources

About Amdocs

For more than 30 years, Amdocs has ensured service providers' success and embraced their biggest challenges. To win in the connected world, service providers rely on Amdocs to simplify the customer experience, harness the data explosion, stay ahead with new services and improve operational efficiency. The global company uniquely combines a market-leading BSS, OSS and network control product portfolio with value-driven professional services and managed services operations. With revenue of $3.3 billion in fiscal 2013, Amdocs and its 21,000 employees serve customers in more than 70 countries.

Amdocs: Embrace Challenge, Experience Success.

For more information, visit Amdocs at www.amdocs.com

Amdocs' Forward-Looking Statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2013 filed on December 09, 2013 and our Form 6-K furnished for the first quarter of fiscal 2014 on February 11, 2014

SOURCE Amdocs

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