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India is one of the fastest growing telecom markets in the
region and leading industry players in the OSS/BSS market expect the market for
OSS/BSS to outpace global trends in terms of growth rate. Though the telecom
industry is doing well, thanks to the phenomenal growth in the number of telecom
subscribers, almost all the telecom operators are losing revenue in the course
of their daily operations, and recent studies point to losses as high as 12-15%
of the total turnover.
Innovation and differentiation may be the key for both
enterprises and vendors to satisfy their customers. Changes in regulatory rules
have already opened up the market for greater competition and hastened
consolidation-providing significant opportunities for operators to enhance
their competitive position via innovation, differentiation and becoming more
agile and cost effective in rolling out new services or services in new areas.
Some of the main drivers for growth in turn will be the consolidation of
disparate OSS/BSS systems into one and to improve cost and enhancement of OSS/BSS
systems to roll out more complex or innovative services ahead of competition.
Increasing competition in higher growth telecommunication
segments such as mobile data, VoIP, IPTV and hosted application services are
driving the growth in OSS market. Due to this, CSPs should not only launch the
services quickly, but they must also bill them accurately and provision them
efficiently to stay ahead.
The CAGR of the global OSS/BSS industry in the past 5 years has
been in the range of 6-7% and is forecasted by some analyst group to grow at
this rate for the next 5 years. But there are many hurdles on their path to
achieve a consistent growth in the coming years.
Cost Concerns
This subject has been an interesting area for discussion in the Indian
context, a market that is price sensitive and flooded with too many players.
Surprisingly, the tendering approach has definitely not helped the incumbent
operators to achieve reduced cost of purchase and continued support and
maintenance. Competition, improvement in technology and options for shorter
timeline association with vendors is critical. Traditional methods like
seven-year maintenance, vague functional specifications, and focus on hardware
efficiency has sometimes achieved contradicting results. Billing system
implementations deal with mission critical parts of a service provider's
business-the management of customers and revenue. As such, it is vital that
implementations of billing systems are as smooth and low risk as possible.
However, this does not necessarily mean implementation cost will be high or
escalate.
| Experts
panel |
|
Raghu
Ramanadhan, regional sales
director, Intec
Sudeesh Yezhuvath, chief
operating officer, Subex Azure |
Improve Process Efficiency
Quality, cost management and process efficiency are related issues. If an
OSS/BSS system is built using a disciplined approach to software quality and
includes rigorous testing processes then it will obviously perform more
efficiently. But this efficiency is also determined by the business processes
which it supports within an overall OSS infrastructure as well as the other
systems within the infrastructure.
A leading company's tailor-made product portfolio includes
products which broadly manage process quality and process efficiency in a cost
effective way, addressing sales and marketing processes, order management and
service activation processes, customer care processes, service & revenue
assurance processes, billing & collections processes and finally revenue
settlement processes.
Cost Efficient Systems
Management of cost will result into better bottom line and this can assist
enterprises to go ahead in turbulent times. Despite the overwhelming growth in
telecom market in India, revenue loss in the daily operations of telecom
companies is yet to be curbed in a big way.
These alarming losses come from an accumulation of apparently
minor individual errors such as a call rated incorrectly, a record arrives too
late to be included on a bill, or maybe an order processing issue resulting in
inconsistent provisioning. Multiply these by many thousands, it all adds up to a
huge drain on any organization and the fraudsters in the network. And the
problem can only get worse, as 3G brings further complexity to networks,
allowing a whole new set of fraud to take place. The focus on content brings new
partnerships and more complex revenue sharing models. Therefore, there is a need
for comprehensive revenue maximization solution.
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| Increasing competition in
higher growth telecom segments such as mobile data, VoIP, IPTV and hosted
application services are driving the growth in OSS market |
Intuitively, business challenge in growing markets is actually
revenue generation/capture as opposed to cost efficiency. However, declining
ARPUs and growing competition from disruptive technologies force operators to
continually look at cost efficient models.
In India, there are companies whose products are designed
specifically to manage process automation to reduce costs and process data as
efficiently as possible. Another product line addresses multi-service mediation,
service activation and revenue assurance, focusing on accurate and complete
order capture and service activation, comprehensive event collection (from both
switching infrastructure and IP networks elements) and also error management, to
process errors before they become significant cost issues. Meanwhile, 'Charging
and Billing' product line from a leading player concentrates on retail revenue
management, charging and billing processes, to ensure that the company's
subscriber activity is properly and accurately captured and recorded,
significantly across multiple services and multiple subscriptions. This involves
not just billing, but also charging for services in real-time (in the case of
prepaid and some IP services), as well as credit and collections management and
the application of revenue recognition rules and processes for accurate
financial analysis and reporting.
One of the suggestions to improve quality/cost efficiency may
include ROC (Revenue Operations Center)-an integrated operational
infrastructure that helps telecom operators to monitor, control and assure
integrity of the entire revenue chain.
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