Current weaknesses in service delivery platforms threaten profitable roll-out of mobile data services
17 March 2003 - American Management Systems (AMS), a global business and IT consulting firm, today urges European mobile operators to address weaknesses in their service delivery platforms that threaten the successful development and delivery of mobile data services.
AMS believes that current infrastructure shortcomings make the risks associated with new service development prohibitively high for operators and content providers. Unless these problems are addressed, AMS forecasts that service development will grind to a halt, preventing the necessary 'trial and error' testing of services to identify those that will deliver a profit.
Brian Marshall, business development director of AMS's telecommunications business in Europe, explains: "There is considerable market uncertainty about the data services that will be successful. Operators need, above all else, the capability to launch (and withdraw) services quickly and cheaply, on a 'trial and error' basis, yet the development of new services today is difficult, expensive and slow. There is rarely a clear business case for service development, let alone deployment and operation. If they are to deliver the services that the market expects, operators urgently need to reduce the effort required for developing, deploying and operating mobile data services."
AMS recommends that operators implement an integrated service delivery platform that supports both the development community and the operational environment. This platform would provide a common IT infrastructure that dramatically reduces complexity by hiding the particularities and technicalities of individual operator networks, support systems and handsets. It would enable operators to cut the costs and time required for service development and deployment, opening the way for launch of a wider range of data services.
A platform of this kind could also both reduce the service development costs and increase the revenue potential for content and application providers, positioning operators to negotiate more lucrative revenue sharing deals with these providers.
Such an integrated platform would enable operators to achieve service interoperability and allow operating companies in a single group to share the cost of service development. Development costs could also be shared between operators and third parties.
Brian Marshall predicts, "The first operator to implement a delivery platform of this kind will be strongly positioned to attract leading content providers and corner the most profitable sectors of the mobile data market."
AMS is a global business and IT consulting firm whose customers include leading financial institutions and telecommunications companies from around the world as well as federal, state, and provincial governments in the U.S. and Canada. With deep industry experience and technical know-how, the company delivers results that measurably improve business performance and the relationship between an organisation and its customers. Founded in 1970, AMS is headquartered in Fairfax, Virginia with 50 offices worldwide. AMS European headquarters are in The Hague, The Netherlands, with staff and offices in 11 European countries. The company is traded on the NASDAQ National Market under the symbol AMSY. For detailed information about AMS, visit http://www.ams.com
This release may contain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "intends" and similar expressions are generally intended to identify forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks in project delivery and staffing, risk of revenues not being realized when expected, risk of increased competition in the markets, and the effects of economic uncertainty on client expenditures as well as other factors described in item 7 of AMS's Annual Report on Form 10-K for the year ended 2001. The Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's (estimates or) views as of any subsequent date.
+44 (0) 1962 829722
Giles Peddy/Kate Cleevely
The Weber Group for AMS
+44 (0) 207 067 0617
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