For a long time, telecom operators have been regarded as a potential player in the SaaS (Software as a Service) model, a way of delivering applications by hosting them on a data center and making them accessible over IP networks. In 2006, Dr. Matthew Lucas posted an article Editorial: Software as a Service (SaaS) and the Telecoms  in which he lists his top 10 reasons why telecoms should care about SaaS. It's worth a read.
 

A point I would like to make is that this approach to distributing applications not only allows operators to leverage their network infrastructure and sales channels but also one of their major skills, to deliver services within a SLA.

According to a release from Gartner in November 2009, SaaS is regarded as a growing business. In the last few months some of the major European operators have made movements in this sector and we see how the existing portfolio of enterprise operator-run value added services increases with new this new approach. For instance, Deutsche Telekom is reinforcing their position and is set to take over SAP European software business based on news in September 2009.
 

The SaaS model is not only restricted to large enterprises. Last year, Telefónica entered into an agreement with NEC for a Software as a Service platform that will target small and mid sized companies.

 

Let’s see what happens in 2010 with SaaS. I expect that it will continue to gain momentum.

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Fixed-mobile convergence is gaining momentum in Europe, especially for business communication services.

Telefónica, one of the world’s largest telecommunications operators that has embraced both the fixed and mobile telephony businesses, is now further reinforcing this and has recently announced that Telefónica O2 is working with British Telecom to offer converged services in the United Kingdom.

Vodafone is also positioning in this space. Already providing fixed telephony in countries such as Germany, Italy and Spain, fixed line service revenues grew significantly in 2008. In fact, Vodafone recently secured a deal with British Telecom Ireland to purchase their consumer and small business operation.

Will this be just the tip of the iceberg? While it may be driven by business communications, with small businesses and medium enterprises seeing a value in having a single communications provider, the strategy opens the door for new services combining broadband data, TV, and presence.

 

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The mobile market in Latin American is one of the hottest worldwide, having experienced a major growth in the last five years.   A recent study by the International Telecommunication Union shows that around 80% of the population in the continent has a mobile phone and that countries such as Argentina, Uruguay or Panama have higher mobile penetration than Canada or the United States.  With regional penetration likely to exceed 100% soon, mobile voice service expending has sign... [More]