Operators recognise need to cut costs
Operators must keep a close eye on balance sheets in current climate, says leading system integrator and vendor
Despite continued growth in the region's telecoms sector, operators in the Middle East and Africa must continue to find ways of cutting costs and improving profit margins, according Sameh Atallah, CEO of Cairo-based telecom vendor and systems integrator, Mobiserve.
Speaking to operators and vendors at MECOM 2010 this week, the Mobiserve chief stressed that cost cutting measures through outsourcing should remain "imperative" in the current telco climate.
"Operators are still very much aware of the bottom line and are seeking to implement cost cutting measures to improve profit margins. We've seen recent moves towards this, with regional operators beginning to formulate agreements to share network infrastructure," he said.
Atallah added that operators also increasingly recognise the benefits of maintenance outsourcing as a means of lowering costs and helping to keep resources focused on core operations.
Despite the need for operators to keep an eye on their balance sheets, Atallah said that the outlook in the region's telecom sector remained broadly positive, particularly amid the growth of mobile broadband.
"While we're certainly reaching a saturation point in terms of subscriber levels in some countries, the initial deployment of next generation Long Term Evolution networks in the region to enable faster network speeds continues to make the outlook for the sector extremely dynamic," he said.
Mobiserve works on infrastructure rollouts and maintenance projects with some of the region's leading operators including Etisalat, Zain, Mobinil, Vodafone Egypt and Djezzy.