Next Generation Network OSS/BSS Market and Forecast 2010-201511 Mar 2011 • by Natalie Aster
Next Generation Networks (NGN) promises a high quality end-user experience. Telecommunications service providers expect the NGN framework to provide them with tools that would ensure customer loyalty. However, the path towards achieving the ideal NGN is fraught with formidable challenges. The most critical challenge confronting operators is optimizing their OSS and BSS platforms, systems, and processes.
BSS/OSS revenues that can be attributed to IMS network elements are slated to grow at an impressive 43% while their legacy counterparts will notch a staid 6%. The former category will thus increase its share to more than a third of the consolidated OSS/BSS market in 2014 from just above 10% in 2014.
The research “Next Generation Network OSS/BSS Market and Forecast 2010-2015” by Mind Commerce Publishing LLC provides a comprehensive analysis of drivers and issues related to technical and business aspects of OSS/BSS deployments and developments while forecasting their growth over the next five years. The report has derived historical and contemporary market data from published financial reports of listed companies, data published by industry bodies and other sources. Using this data, first and second order arithmetic and geometric progression are employed with appropriate weightage assignment for different variables.
Published: May 2010
Price: US$ 2,995.00
Report Sample Abstract
The broad primary drivers for NGN are the following:
- Telecom Operator and Vendor Interests;
- Improvement in Access Technologies;
- Reduced Vendor Dependency;
- Opening of Global Financial Markets.
Telecom Operator and Vendor Interests
It is estimated that the top 15% of US residential customers account for 95% of carrier profits. This statistic throws light on how important it is to retain highvalue customers. Telecom operators realize that it is increasingly necessary to brand their services and enhance their recall in the minds of their customers. India, for example has witnessed a twenty-fold increase in the number of major telecom operators in the last decade. This number is slated to go up with the allocation of 3G licenses. The Telecommunications Act of 1996 unbundled the network into discrete components which the operators had to provide on a wholesale basis to other entrants. This effectively resulted in the opening up of the local networks to competition. Significantly, the operators needed their respective OSS to talk to each other for effective wholesale transaction, thrusting the closely guarded OSS architecture towards the direction of open architecture.
Network Planning and Engineering
NPE functions deal with dimensioning the network based on projected market forecasts. It involves selection of best access technology taking into account geographical and economic factors. The inputs required for this exercise include geographical maps, demographic analysis, customer locations and others. The output of NPE is a network map that contains service types supported, maximum traffic volume supported, customer classes, network infrastructure costs and operating expenses.
NPE in the IMS era is simplified to a large extent as IMS presents the ultimate in modularization of functions. As scaling or orientation of network topology and service profile is much easier in the IMS era, IMS does not present any real challenges on the NPE front. This is however, just one aspect of the story, which considers IMS in isolation. In practice, every IMS deployment is a migration from legacy environment. IMS is thus an addition to the existing networks. Sadly, this is an aspect that has not been adequately dealt with by the stakeholders.
Consequently, NPE does become a tedious and complicated exercise while dealing with the prospect of integrating IMS components.
Vendor Landscape Observations
- The OSS-BSS solution vendor community has close to 400 active members, making it a very competitive segment. Since the frameworks are largely in place, standards are well-defined and customer requirements are well articulated, there is a large commonality in the product and solution offerings of the vendors.
- One also notices that all the vendors have a very strong services component, which includes installation, troubleshooting and training functions. These functions are either carried out by the vendors themselves or sourced from their partners.
- In the true spirit of NGN, it is practically impossible to find a telecom operator embracing a single vendor for all the OSS/BSS requirements.
- More often than not, it is a mix and match of vendor solutions and products OSS/BSS vendors derive their revenues from product licenses, installation and consulting services, and solution maintenance. All the vendors have competent services arms either within their organizations or outsourced.
More information can be found in the report “Next Generation Network OSS/BSS Market and Forecast 2010-2015” by Mind Commerce Publishing LLC.
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