The great OSS squeeeeeeze

TM Forum’s Open Digital Architecture (ODA) White Paper begins with the following statement:

Telecoms is at a crucial turning point. The last decade has dealt a series of punishing blows to an industry that had previously enjoyed enviable growth for more than 20 years. Services that once returned high margins are being reduced to commodities in the digital world, and our insatiable appetite for data demands continuous investment in infrastructure. On the other hand, communications service providers (CSPs) and their partners are in an excellent position to guide and capitalize on the next wave of digital revolution.

Clearly, a reduction in profitability leads to a reduction in cash available for projects – including OSS transformation projects. And reduced profitability almost inevitably leads executives to start thinking about head-count reduction too.

As Luke Clifton of Macquarie Telecom observed here, “Telstra is reportedly planning to shed 1,200 people from its enterprise business with many of these people directly involved in managing small-to-medium sized business customers. More than 10,000 customers in this segment will no longer have access to dedicated Account Managers, instead relegated to being managed by Telstra’s “Digital Hub”… Telstra, like the big banks once did, is seemingly betting that customers won’t leave them nor will they notice the downgrade in their service. It will be interesting to see how 10,000 additional organisations will be managed through a Digital Hub.
Simply put, you cannot cut quality people without cutting the quality of service. Those two ideals are intrinsically linked
…”

As a fairly broad trend across the telco sector, projects and jobs are being cut, whilst technology change is forcing transformation. And as suggested in Luke’s “Digital Hub” quote above, it all leads to increased expectations on our OSS/BSS.

Pressure is coming at our OSS from all angles, and with no signs of abating.

To quote Queen, “Pressure. Pushing down on me.Pressing down on you.”

So it seems to me there are only three broad options when planning our OSS roadmaps:

  1. We learn to cope with increased pressure (although this doesn’t seem like a viable long-term option)
  2. We reduce the size (eg functionality, transaction volumes, etc) of our OSS footprint [But have you noticed that all of our roadmaps seem expansionary in terms of functionality, volumes, technologies incorporated, etc??]
  3. We look beyond the realms of traditional OSS/BSS functionality (eg just servicing operations) and into areas of opportunity

TM Forum’s ODA White Paper goes on to state, “The growth opportunities attached to new 5G ecosystems are estimated to be worth over $580 billion in the next decade.
Servicing these opportunities requires transformation of the entire industry. Early digital transformation efforts focused on improving customer experience and embracing new technologies such as virtualization, with promises of wide-scale automation and greater agility. It has become clear that these ‘projects’ alone are not enough. CSPs’ business and operating models, choice of technology partners, mindset, decision-making and time to market must also change.
True digital business transformation is not an easy or quick path, but it is essential to surviving and thriving in the future digital market.”

BTW. I’m not suggesting 5G is the panacea or single opportunity here. My use of the quote above is drawing more heavily on the opportunities relating to digital transformation. Not of the telcos themselves, but digital transformation of their customers. If data is the oil of the 21st century, then our OSS/BSS and telco assets have the potential to be the miners and pipelines of that oil.

If / when our OSS go from being cost centres to revenue generators (directly attributable to revenue, not the indirect attribution by most OSS today), then we might feel some of the pressure easing off us.

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