World Telecoms BSS and OSS Markets: trends and analysis

SUMMARY

Product overview

"For a long time service providers have been putting off their BSS/OSS problems until tomorrow. Unfortunately for them tomorrow just arrived in the form of new competitors and a new service-focused environment. Quite simply, they can't put it off any longer: failure to address BSS/OSS challenges will cripple their ability to compete in the next-generation environment."

Teresa Cottam, Analysys Associate

Today it is widely recognised that the back-office systems that manage service providers' revenues and service provision are critical to success in the next-generation environment. However, many years of tactical rather than strategic investment in business support systems (BSS) and operational support systems (OSS) have resulted in complex back-end infrastructure that, in many cases, is expensive to run and maintain, inefficient and unable to support convergent, next-generation services.

The evidence from contracts data is that the BSS/OSS market is starting to climb out of recession: service providers are beginning to invest strategically and restructure the IT systems that support their evolving businesses. Solving BSS/OSS challenges will provide a critical competitive advantage that will help service providers exploit badly needed new revenue streams. But there is huge confusion about the nature and potential role of new technologies ? IP Multimedia Subsystem (IMS), IP Television (IPTV), Service-Oriented Architectures (SOAs) and Service Delivery Platforms (SDPs), to name but a few.

Cutting through the confusion, this report analyses market trends in BSS/OSS based on real-life purchasing decisions, and answers your key questions:

• What are the market drivers? What were the key trends in BSS/OSS purchasing in 2005? What is the outlook for 2006?7?
• What are IMS, IPTV, SOAs and SDPs? Will these technologies take off and what do they mean for the BSS/OSS market?
• What were the supply-side market dynamics in 2005? Which regions and sectors have been most active? Which vendors have been particularly successful in each sector?
• Who are the top ten vendors overall? Which vendors are the ones to watch in the next two years and who are the new up-and-coming players?
• On the demand side, what are the key difficulties faced by service providers worldwide and how are they solving them?
• Who is buying what type of system and why?

World Telecoms BSS and OSS Markets: trends and analysis provides key statistics on the BSS/OSS market based on data from Analysys Research's contracts database, as well as in-depth analysis, and opinions and case studies from a wide range of industry players. A supplementary PowerPoint presentation summarises the key findings.

TABLE OF CONTENTS

Summary

1 The demands of next-generation services are driving the BSS/OSS market

1.1 The traditional view of BSS/OSS is becoming outdated

1.2 Operators are still evaluating IMS

1.3 Service delivery platforms are distinct from, but complementary to, IMS

1.4 SOAs are not an integration panacea

1.5 IPTV is a disruptive technology but affects some BSS/OSS systems more than others

1.6 Overall the global BSS/OSS market is static but some sectors are set to grow substantially

1.7 A small number of vendors dominate the market

1.8 Key points

2 Effective billing is essential for successful convergent services

2.1 Complex back-office infrastructures plague the industry

2.2 Customers rate VNOs as better at pricing and billing than incumbents

2.3 Convergence and consolidation are now driving sales of telecoms billing systems

2.4 The number of announced retail billing contracts continues to decline slowly

2.5 The wholesale, interconnect, roaming and PRM markets remain steady overall

2.6 Increased vendor consolidation is likely in the billing market

2.7 Key points

3 Scalability and auditability are key issues for mediation and data management

3.1 Accurate data is a fundamental requirement for running a profitable, innovative and competitive telecoms business

3.2 Mediation contracts dropped in 2005

3.3 There will be further consolidation of mediation and data management vendors

3.4 Key points

4 The revenue assurance and fraud management market is growing strongly

4.1 The revenue assurance and fraud management systems market is still immature

4.2 Azure revenue assurance survey shows revenue loss averages 12.2%

4.3 Globally the market for revenue assurance and fraud management systems is robust

4.4 Reticence in announcing contracts means there is less visibility of sales activity in this market

4.5 Key points

5 Service fulfilment is becoming an end-to-end process accompanied by seamless service assurance

5.1 Service fulfilment has been plagued by integration problems, inaccuracy, low visibility and high error rates

5.2 Commercial factors are driving the service fulfilment market

5.3 Operators are increasingly automating and consolidating their service fulfilment and assurance chains

5.4 Demand for CRM and order management is increasing ? notably in Africa

5.5 The global service provisioning market is dominated by North America

5.6 Broadband roll-out is driving the activation market in Europe

5.7 The inventory management market is growing strongly in Central and South Asia

5.8 Europe dominates the service assurance market but demand is rising in the Pacific Rim and South-East Asia

5.9 The service fulfilment and assurance sector is dominated by a handful of big players

5.10 Key points

6 Annex 1: Methodology

6.1 Collections criteria

6.2 Analysis methodology