Unfortunately, relying on a single, generic vendor can put telecoms operators at a strategic disadvantage. In 2020, the Government of the United Kingdom began a process of legislating the removal of Huawei technology from 5G networks. By 2023, the rip and replace had cost BT £500 million. BT also missed a legislated deadline in the process, risking a massive fine. With the subsequent delay to 5G rollouts, it’s believed the economic cost to the UK runs into billions of pounds.
Later in 2020, the Government implemented their 5G Supply Chain Diversification Strategy. The policy promotes the idea of open interface and multi-vendor network infrastructures, delivering strategic resilience and flexibility for changing market conditions.
The low cost of generic vendors is appealing, but their standard, rigid network solutions no longer meet variable market requirements. Once locked into one-sided partnerships, telecom operators must pay significant support, maintenance and customisation fees
However, focused vendors offer a different strategic path. Here are some of the reasons why you need a specialist network solutions friend.
By partnering with several focused vendors, operators gain greater knowledge of technological options, their costs and interop choices. This can help build strategic advantages and deliver solutions faster and at a reduced cost.
Furthermore, Communication Service Providers (CSPs) need inbuilt network flexibility to facilitate the seamless integration of additional features and technologies. Otherwise, they risk losing out on capitalising on fast-emerging market trends.
For example, in the case of small-state telecom operators, focused vendors often deliver solutions that meet their unique network challenges. Squire Technologies delivered such a project for Vodafone French Polynesia, replacing a generic vendor’s solution with a suitable, flexible upgrade.
Working on these projects gives focused vendors greater expertise that they can then apply in other scenarios. Alternatively, the size and influence of generic vendors like Huawei, Nokia and Ericsson can lead telecom operators to accept low-cost, standard solutions that don’t fully meet their requirements.
Network standardisation weakens strategic positioning and can cause a drop in technological diversification and innovation. Thankfully, by creating specialist partnerships with multiple focused vendors, operators can access wider knowledge pools and product variations.
‘Partnering with focused vendors creates strong strategic advantages for CSPs. They can gain access to better pricing and insights into network solutions from many global regions. Their networks become more flexible, and they can avoid lock-in scenarios. They can also access better expertise from more sources and strengthen their strategic positioning through diverse supply chains.
‘There is immense knowledge to gain for telecom operators partnering with multiple vendors. Specialist knowledge is proving increasingly vital as telecom operators seek to overcome intense telecom market competition.’
Douglas Bryce, Marketing Communications Specialist at Squire Technologies
