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Restructuring will provide some benefits, but telecom vendors will need to pursue service delivery transformation to attain sustainable margin improvement

According to Technology Business Research Inc.’s (TBR) 2016 Telecom Infrastructure Services (TIS) Margin Benchmark, average TIS margins for Tier 1 telecom vendors declined year-to-year in 2016, mainly due to high upfront costs associated with large-scale transformation contracts, the impact of legacy infrastructure decommissioning and unfavorable deployment mix skewed toward coverage rollouts in relatively low-margin emerging markets.

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