Amidst intensified competition and evolving consumer expectations, the telecommunications industry is undergoing significant change. As telecom providers navigate the imperative to innovate, differentiate, and adapt in an increasingly competitive landscape, the significance of Business Support System (BSS) transformations is always at the forefront. From pioneering new services to optimizing operations and prioritizing customer-centricity, the need for BSS transformations is ever evolving. While there are many reasons to undertake a BSS Transformation the opportunities outlined in this article are a few of the key drivers that we have found are common across the telecom providers that we have helped successfully execute their transformation journey.
Over the Top (OTT) and Value Added Services (VAS)
Increasing consumer adoption of streaming services, on-demand content, and communication applications that bypass traditional distribution channels have caused a dramatic shift in the telecommunications industry. With the global market for over the top (OTT) services expected to increase from roughly $60 billion in 2023 to over $229 billion by 2032 this provides a sizeable threat, and a huge opportunity to telecommunications providers. OTT and VAS, which encompasses a wide range of offerings such as content subscriptions, mobile payments, and IoT-related services, have created additional competition, but also additional revenue opportunities for traditional Telco’s. However, because these services are significantly different than traditional telecom products in how they are ordered, provisioned, billed/charged this also creates challenges for legacy BSS platforms. These new services create new paradigms for BSS platforms as what constitutes a product, subscriber, account, and a customer. Modern BSS ecosystems need to adapt in order to not only incorporate these services and associated vendor integrations but also merge paradigms of these OTT and VAS products with legacy products to enable seamless customer experiences regardless of product type.
Source: https://www.fortunebusinessinsights.com/industry-reports/over-the-top-services-market-100506
Converged, Customer-Centric Ordering
The convergence of traditional telco products, such as Voice, Video, Data, and Mobile was already proving challenging for legacy BSS platforms but with the addition of OTT and VAS that complexity has increased exponentially. Couple that desired convergence with data-driven customer-centric bundled offers and the imperative for agile and adaptable BSS platforms becomes increasingly evident. Modernized Product Catalog and CPQ tools promise the ability to deliver on these converged, data driven, customer centric promises but often existing BSS platforms aren’t compatible creating the need for larger BSS transformations to occur. The evolving landscape of converged and data-driven customer-centric ordering, combined with the dynamic nature of OTT and VAS products, underscores the necessity for comprehensive BSS transformations to effectively navigate this intricate service landscape.
Speed to Market and Operational Efficiency
Operational efficiency and speed to market are critical for telecom companies striving to introduce new offers, bundles, discounts, and innovative services ahead of or in response to market dynamics and competitive pressures. Operational efficiencies, achieved through streamlined workflows, process automation, and resource optimization, are pivotal in driving cost savings, improving time-to-market, and enhancing overall agility. Modernized Business Support System (BSS) platforms enable telecom providers to swiftly conceptualize, develop, and launch innovative products and solutions, allowing them to react promptly to market demands and outpace competitors. This agility and responsiveness are critical in addressing evolving customer demands and market dynamics, equipping telecom companies to maintain their competitive edge and foster innovation in a rapidly evolving industry landscape. The strategic alignment of operational efficiency and speed to market considerations is fundamental in driving the success of a BSS transformation, enabling telecom providers to adapt more effectively to market changes and customer demands, while optimizing their operational effectiveness.
Technology Shifts
The adoption of key technology drivers such as cloud-native architecture, microservices, APIs, data analytics, AI, automation, orchestration, DevOps, and CI/CD in Business Support System (BSS) transformations can significantly drive decreased operational costs and overhead for telecom companies. By leveraging cloud-native architecture, telecom companies can reduce infrastructure costs, scale resources as needed, and minimize operational overhead associated with traditional on-premises solutions. The implementation of microservices and APIs enables modular and agile development, fostering interoperability and reducing the complexity of integrating new services, which can lead to cost efficiencies and streamlined operational processes. Additionally, advanced data analytics and AI capabilities empower telecom companies to derive actionable insights, optimize resource allocation, and enhance customer experiences, contributing to improved operational efficiency and reduced costs. Automation and orchestration technologies drive operational efficiencies, streamlining workflows, and reducing manual intervention, ultimately leading to decreased operational costs and overhead. Embracing DevOps and CI/CD practices fosters a culture of collaboration, agility, and continuous improvement, accelerating the development and deployment of BSS solutions, which can result in cost savings and improved operational effectiveness. Overall, the strategic adoption of these technology drivers in BSS transformations has the potential to drive decreased operational costs and overhead, enhancing the overall efficiency and competitiveness of telecom companies.
The telecommunications industry is undergoing a significant transformation, driven by the imperative to innovate, adapt, and differentiate in response to intensified competition and evolving consumer expectations. Business Support System (BSS) transformations have emerged as a pivotal strategy for telecom providers, propelled by the need to address key industry shifts and challenges. The increasing adoption of Over-the-Top (OTT) and Value Added Services (VAS) has introduced new paradigms for BSS platforms, necessitating comprehensive adaptations to seamlessly integrate these services and deliver cohesive customer experiences. Operational efficiency and speed to market are critical considerations for telecom companies striving to introduce new services and offerings in response to market dynamics and competitive pressures. The strategic alignment of operational efficiency and speed to market considerations is fundamental in driving the success of BSS transformations, enabling telecom providers to adapt more effectively to market changes and customer demands, while optimizing their operational effectiveness. Moreover, the adoption of key technology drivers such as cloud-native architecture, microservices, APIs, data analytics, AI, automation, orchestration, DevOps, and CI/CD plays a pivotal role in driving decreased operational costs and overhead for telecom companies. These technology drivers empower telecom companies to derive actionable insights, optimize resource allocation, and enhance customer experiences, ultimately contributing to improved operational efficiency and reduced costs. This strategic adoption of technology drivers in BSS transformations is essential for telecom companies to navigate the rapidly evolving industry landscape, drive operational efficiencies, and remain competitive in the dynamic telecommunications sector.
