BSS-as-a-Service: Does the Telecom Industry Need This Approach?

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Telcos are hostages of the continuous race for supremacy. According to TM Forum, a prominent standards organization in the OSS and BSS industry, they have stated that the pursuit of digital BSS transformation is already underway, with a clear objective in sight.

CSPs armed with robust BSS/OSS, built well-designed service creation environments and created flexible development strategies to stay afloat. But still, is there room for optimization?

Let’s talk about the BSS-as-a-Service as a solution for this telco pain point. Is the BSS-as-a-Service idea worth considering?

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Reasons to Launch and Implement BSS-as-a-Service

Fewer Total Cost of Ownership

Companies spend millions of dollars on setting up, hosting, maintaining, and improving custom Business Support Systems. BSS includes product catalog, billing, CRM, ERP, and other systems. It also gathers departments like marketing, IT, financial, and customer support under one roof. Fierce competition makes CSPs take care of each of these elements and integrations between them to increase their performance.

Meanwhile, BSS-as-a-Service can cover all duties concerning maintenance, new feature implementation, and regular updates. It means that businesses will be able to cut their operating costs and invest effort & money in high-priority projects.

Endless opportunities for scaling

Legacy BSS always makes companies face limited scalability. It’s pretty challenging to expand the software ecosystem and help it cope with an overload when it’s monolithic-based. CSPs continue their global BSS migration to the cloud and microservices to make this task easier.

However, cloud BSS-as-a-Service might be a great solution to this issue because of its unlimited scalability. No matter how many millions of subscribers you have. In this case, your BSS software can process their requests simultaneously without crashes and downtimes.

The absence of tech debt

BSS-as-a-Service might optimize your IT department’s operation. Developers have time to devote to new service creation or your business growth support. Meanwhile, vendor-side people will take care of all updates, drawbacks, and improvements.

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Rapid deployment of cloud-based BSS

According to industry forecasts, the market size of cloud OSS BSS is projected to experience substantial growth, increasing from $20.1 billion in 2022 to approximately $36.6 billion by the year 2027. It offers a valuable solution for telecommunications companies aiming to avoid extensive digital transformations. By embracing cloud-based BSS as a service, telcos can adopt a phased implementation approach, minimizing migration risks and resource requirements. Organizations that leverage the potential of the cloud can quickly deploy new services, adjust to market dynamics, and expand their facilities to meet changing needs, all while reducing costs and improving operational efficiency.

The deployment of cloud-based BSS is characterized by its remarkable speed, often taking only hours instead of weeks or months. This efficiency stems from the pre-existing infrastructure that serves as the foundation. It allows telcos to swiftly configure and deploy their BSS solutions using pre-built templates and automated processes.

Cloud BSS solutions come with pre-configured settings, enabling service providers to implement them rapidly without the need for extensive customization. This streamlined approach significantly reduces deployment time, as telcos can leverage ready-to-use, off-the-shelf solutions that require minimal setup.

Revolutionizing the telecom sector

The telecommunications industry is undergoing a remarkable transformation, thanks to the advent of SaaS. Switching to BSS-as-a-service, marked a pivotal moment in the sector's evolution. Typically, organizations witness a cost-saving ratio of $1.50 for every dollar invested in SaaS solutions, resulting in substantial financial benefits.

BSS systems must adapt to this paradigm shift to thrive in an increasingly competitive market. Embracing BSS SaaS solutions brings forth a multitude of benefits, empowering providers with accelerated time-to-market, seamless system deployment, and access to cutting-edge capabilities. It's important to emphasize that SaaS transcends conventional managed services by encompassing the entire operational model, lifecycle management, and business model of a specific software application, all seamlessly delivered through the public cloud.

This transformative shift to BSS-as-a-service represents a momentous opportunity for telcos to optimize their operational efficiency, enhance agility, and unlock new avenues for growth. By wholeheartedly deploying it, providers can position themselves at the forefront of the industry, proactively navigating the turbulent landscape with confidence and innovation.

Reasons to Bury the BSS-as-a-Service Idea

Lack of customization

With a custom Business Support System, telco companies have a broad range of options for improving it following business needs. Meanwhile, the frequency and nature of updates aren't under the user's control when it comes to BSS-as-a-Service, because the burden is on the vendor's shoulders. CSPs can affect its solution concerning the direction of improvement, however, this process is costly.

Complex demand

Vendors will create BSS-as-a-Service architecture and decide on upgrading based on the general discovery of the entire telecom industry. They aim to cover basic needs and eliminate widespread business weaknesses. Meanwhile, most CSPs already use legacy Business Support Systems tailoring all business processes to them. The variety of scenarios and offerings on the telecom market can’t be covered with a versatile cloud solution since it will not consider the particular needs of each user.

Data reliability and safety

Ensuring the integrity and security of data is a crucial challenge when implementing and managing BSS in a SaaS model in the telecom industry. These systems handle vast amounts of sensitive customer and financial data, necessitating accuracy, consistency, and compliance with regulations and standards. Inadequate data quality can result in errors, disputes, and fraudulent activities, while data breaches can seriously harm a telecom operator's reputation and erode trust. To tackle this challenge effectively, telecom operators must adopt robust data governance and quality management practices. These may include implementing data cleansing, validation, auditing, and encryption techniques.

Additionally, staying up to date with the latest security measures and technologies, such as firewalls, antivirus software, and encryption protocols, is essential. By taking these measures, telecom operators can enhance data quality and security, safeguarding both their operations and the trust of their customers.

Ruining customer expectations

Delivering exceptional customer experiences and meeting their evolving expectations is a significant challenge when implementing and managing SaaS BSS in the telecommunications industry. Customers demand prompt, reliable, and personalized services from their telecom providers. They also seek transparent pricing models and flexible billing options. Additionally, consumers expect seamless communication and interaction through various channels, including websites, mobile apps, email, and social media platforms.

Failing to meet these expectations can have detrimental effects, such as customer churn and negative online feedback. It is vital for telecom operators to understand that meeting customer expectations is an ongoing process. Regularly gathering customer feedback, conducting satisfaction surveys, and promptly addressing any concerns or issues are fundamental steps toward continuous improvement. By consistently exceeding customer expectations, telecom operators can build a strong brand reputation, retain loyal customers, and thrive in the competitive telecommunications market.

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Wrap Up

Considering all “for” and “against,” you probably discovered that the BSS-as-a-Service idea is bright rather than crazy. Moreover, companies like MDS Global have already launched this product to make the telco business environment more flexible and responsive.

However, there are also valid reasons to consider the challenges and potential drawbacks of BSS-as-a-Service, including the lack of customization, complex demand scenarios, data reliability, safety concerns, and the risk of failing to meet customer expectations. Ultimately, telecom operators must carefully evaluate their specific needs and weigh the advantages and disadvantages before making a decision on whether to adopt BSS-as-a-Service.

So, how do you feel about the BSS-as-a-Service?