Mobility - Voice and Data Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every company and its procurement unit look to bargain the best deal while procuring a set of products or subscribing to a set of services. Rate benchmarking comprises price/cost comparison of multiple sets of products/services to assess the most effective combination that can potentially assist the procurement team in getting the optimum rate.

The rates for this category are structured based on the scope and location of engagement, service portfolio, and type of pricing model. Additionally, the rates may vary based on the length of the contract. Long-term contracts are beneficial to both parties as they ensure security, stability, dedicated support, and resilient partnerships.

Companies such as Comcast Corporation and Cox Communications, Inc. charge periodic subscription fees for businesses, tiered into different categories based on data speed. For instance, a typical subscription plan offering a download/upload speed of 50/15 Mbps is priced in the range of USD 45 - USD 55 per month. A typical plan with a download/upload speed of 100/25 Mbps is priced in the range of USD 65 - USD 75 per month. Such plans may be accompanied by contractual terms which require customers to purchase services for several months (e.g., a contract agreement of three years).

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Network Engineers working in AT&T Inc and Verizon Communications Inc. receive a 10% - 15% higher base salary compared to the salary received by Network Engineers working in Comcast Corporation and Cox Communications, Inc. However, the year-on-year increment rate majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Mobility – Voice and Data category over the last two years:

In November 2023, Broadcom Inc. completed the acquisition of VMware, Inc. This acquisition enabled Broadcom to improve its existing technological capabilities in IT and mobility services. It also helped Broadcom to leverage VMware’s expertise in enterprise software and cloud technologies, thus facilitating the deployment of multi-cloud and hybrid cloud systems in its IT and mobile infrastructure.

In October 2023, Cisco Systems, Inc. completed the acquisition of Working Group Two AS. This acquisition enabled Cisco to rapidly monetize its 5G investments and enhance its 5G platform by improving 5G voice and SMS services. It also enabled Cisco to quicken the deployment of its mobile Software-as-a-Service (SaaS) platform, thus optimizing its mobile services portfolio.

In June 2023, Vodafone Group Plc announced a merger with CK Hutchison Group Telecom Holdings Limited. Under this merger, both the companies agreed to enter into a binding agreement to combine their telecommunications divisions in the UK, namely Vodafone UK and Three UK respectively. This merger aims to provide an optimized network experience to customers of both companies. Moreover, the companies seek to create the most advanced standalone 5G network under their combined business.