Extending the OSS value chain

Share of Wallet
“To avoid commoditization, telcos should become the focal point of the extended value chain, focusing on digital services and taking advantage of their traditional competencies.”
Global telecommunications study: navigating the road to 2020.”

The graph above tells a story about the changing share of wallet (end-to-end value chain) in the telecommunications sector. The three dials to the left are the traditional end-to-end value chain for a CSP. They are treading water or declining.

Share of wallet is shifting towards the right two dials. They effectively represent extra value being added into the value-chain (ie they didn’t previously exist in the days where telcos provided voice services, but are now more highly valued by customers than traditional voice services). Where value is provided, revenues go too. CSPs are naturally going to invest in what’s bringing in the profits, so OSS needs to consider how to contribute to these revenue generators if it wishes to tap into the investment.

The shift from the CSP business model to the DSP business model is already well underway. The Digital Service Provider business model sees the traditional CSP providing applications, content and managed services as differentiated revenue streams. For OSS to contribute, it needs to provide the ecosystems that improve the efficiency and reliability of delivering applications, content and managed services. The service catalogues, the marketplaces, the application building platforms, the content management (and bundling and distribution) systems, the managed service delivery tools, the device (eg IoT or SDN/NFV) management platforms.

This is pushing the boundaries of what OSS have traditionally offered isn’t it? All the more reason for the small-grid OSS to be the model for the future.

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