Skip to main content

How Telecom Service Providers will Evolve in 2015

Around the world, many telecom service providers are in a state of transition, as their traditional voice and data communications service growth opportunities are either limited or in a decline.

Meanwhile, the need to pursue new revenue opportunities has often been restricted by a historically slow moving organization and underlying infrastructure constraints that essentially made them inflexible to address the need to change.

Therefore, during 2015, selective organizational restructuring and fundamental infrastructure transitions will be implemented to enable these telecom service providers to adapt more effectively to the apparent new opportunities in the marketplace.

Much of the change will be driven by the deployment of new software, systems and related professional services from vendors with domain experience in managing these business model transitions.

Adoption of next-generation technologies by telecom service providers has led to worldwide growth in the Operation Support Systems (OSS) and Business Support Systems (BSS) software market, which is expected to post a CAGR of 17.85 percent from 2015 to 2019, according to the latest market study by TechNavio.

The single invoice technology for multiple telecom services in telecom companies has been made possible because of the shift to integrated next-generation technologies -- replacing the disjointed legacy system silos of the past.

The latest report by TechNavio highlights the outsourcing of OSS/BSS service functionality to managed service providers as a major reasons for growth in this sector.

Most telecom operators are experiencing lower profit margins, due to a decrease in the average revenue per user (ARPU), which has pushed many network operators into debt.

In order to reduce operational expenses, some telecom operators have chosen to outsource most of their service functionality -- such as infrastructure, operations and management -- to vendors who can help to optimize their business based upon proven best practices.

"OSS/BSS software implementation and maintenance requires a highly trained workforce, therefore most operators outsource their OSS/BSS functions to managed service providers," says Faisal Ghaus, vice president at TechNavio.

He adds, "Outsourcing of OSS/BSS service functionalities enable operators to maintain profit margins and achieve a high service level agreement."

In addition, increased usage of cloud computing in OSS/BSS is also expected to propel market growth, as it provides flexibility and reduces the typical service provider operational expenses.

The service provider migration to open source technologies, white label hardware, Software Defined Networking (SDN) platforms and Network Functions Virtualization (NFV) will also help to accelerate this ongoing transition to a lower-cost and significantly more agile business model.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C