TM Forum’s first International Operator Asset Management Survey reveals the magnitude of Capex challenge globally

Bangalore, INDIA  – In 2014, it is expected that net global capital expenditures attributable to network investments and growth will exceed $354 Billion; up 4% from the previous year ($340B). While this growth is driven by massive expansion in LTE rollouts and network transformations, what is alarming to operator finance teams around the world is the lack of growth in revenues.

Under the backdrop of increasing capital expenditures (Capex) and revenue growth that is failing to keep pace, operators are now faced with a critical, immediate need to rationalize Capex practices. With this history in mind, the TM Forum Asset Management project team along with Subex as project lead, met with dozens of operators and commissioned an industry survey to study Network Asset Management programs and practices within operators today. The first ever in-depth survey, targeted at both the CFO and CTO organisations, across 29 operators focuses on understanding the magnitude of Capex challenge globally and the returns on existing network investment that operators are experiencing.The report is part of the assets in TM Forum Frameworx 14.5.

Highlights from the survey reveal:

• 65% of respondents believe that their inventory is misaligned with the network
• 75% of the respondents agreed that they are forced to perform expensive, time consuming individual site audits to get a better idea of exactly what they have deployed on their networks
• Deployed asset visibility and decommissioned asset visibility are major areas of concern for over 75% respondents
• Close to 50% of respondents from Finance and Network reach different conclusions on needs and don’t have confidence in network demand projections
• Only 50% respondents measure increase in revenue from network assets

Major findings by the study revealed more finance-led justification and analysis prior to providing Capex approvals, resulting in a need for increased collaboration between both organizations. When asked where investment priorities existed, operators overwhelmingly ranked transformation and capacity augmentation as their key initiatives.

“The survey succeeded in exposing several areas of weakness and misalignment within operator Network Capital and Asset Management across the globe,” said Rebecca Sendel, Senior Director Business Assurance Program, TM Forum. “TM Forum remains committed to helping operators develop new approaches to achieve maximum efficiency and optimization of their business processes and success in Capex management through the Asset Management group.”

“ The survey validates that operators understand the challenges they are facing with adequate network capital asset management programs,” said John Brooks, VP Product Management at Subex and Project Lead, TM Forum Asset Management team. He added, “Operators are today looking at the industry (suppliers, consultants, and standards forums) to provide expertise and best practices to improve, if not solve, these Capex challenges as validated by 95% survey respondents The major hurdle these operators will have in adopting industry-driven network capital asset programs and solutions, however, will be the ability for Network and Finance to collaborate with each other to apply a solution.”

To access the full survey report please click here.

About TM Forum

TM Forum is a global industry association which helps its members transform and succeed in the digital economy. The collective experience and interests of our member community comprised of more than 85,000 experts from 900+ global enterprises, service providers and technology suppliers drives everything we do, from thought-provoking research and publications, to practical guidance, tools and best practices, hands-on events, and training for business and IT leaders.

Through three key programs – Agile Business and IT, Open Digital Ecosystem, and Customer Engagement – we provide a unique platform for our members to connect and collaborate with individuals and groups from around the world to solve key challenges and rapidly innovate to deliver new services, improve business agility, partner for success, reduce cost and risk, and enhance customer value and loyalty. To learn more about the Forum and join our digital journey as a valued member and collaborator, please visit www.tmforum.org.

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