ABI Research expects the growth in the network managed services market to slow down over the next five years on account of lower capex by the service providers.
According to the research firm, the network managed services market is likely to grow at a compound annual growth rate of 7 per cent between 2012 and 2018. Further, telecom equipment vendors like Ericsson, Nokia Siemens Networks and Alcatel-Lucent will be affected by this sluggish growth.
This is owing to lower capex investment by operators, disconnect between internal tools and scaling of network operations, commoditisation of the low-end managed services and concerns regarding profitability.
