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The roadblocks to new digital services roll-out: Why operators must think of commercial migrations to remain competitive

Indrajit Chaudhuri, SVP, Product Management & Technology Office at Tecnotree | July 4, 2016
Research conducted by Tecnotree amongst global operators confirms that the industry is aware that change is required to transform their businesses and stay competitive.

Commercial migration vs. big-bang BSS replacement

Around 78 percent of respondents to Tecnotree's survey plan to increase their external spend on BSS over the next 12 months, while just 36 percent are satisfied with the service they receive from existing BSS infrastructure providers.   

Due to the inability of major operators to act quickly, OTT competitors are now gaining a large share of the market. In fact, almost half of all operators still need to update their legacy BSS infrastructure every time they want to deliver new and digital-content services to their customers.  As a result, operators will need to introduce more cost-effective strategies and efficiently update their legacy BSS infrastructures; yet so far, only 21 percent have installed equipment which fully integrates billing functions within their digital product set. 42 percent of respondents also believe an off-the-shelf BSS product (offering standardised functionality for customer management, self-care, order management, billing, revenue management and dealer channel management) would enable faster time-to-market.

With a number of digital transformation projects failing due to the need for legacy stacks to be brought into the digital age, it is important that operators simplify business processes and rationalise product catalogues effectively, while implementing architecture that is built for both agility and evolution. One way of combatting this is to commercially migrate and move your business to the new BSS stack with new digital services to start with. Instead of trying to replace the old BSS stack completely with one-to-one feature parity in the new system, operators can succeed with lean and simplified off-the-shelf BSS solutions that enable them to launch new digital services faster, without trying to go through the complex business processes required by the telco world of services required in the past.

Nevertheless it is important for operators to understand that digital transformation cannot be achieved in just one single area. The overall performance and objective of the transformation should always be taken into consideration; even if the launching of new digital services starts with a new BSS system, eventual migration of required existing services should be planned. Together with the dawn of new technologies offering countless possibilities, operators can be prepared for the battle to win consumer minds in the new digital world with a flexible and agile BSS system and become DSPs.

 

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