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Contents
03 05 09
The big picture Section 1: Why is the Section 2: A radical, new
business model broken? approach to BSS
13 16 18
Section 3: Challenges to Section 4: Make it happen: Additional features &
adopting ODA Join the ODA team resources
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The big picture
“BSS is broken. It’s a business model that can’t carry on. Operators simply cannot afford
expensive change requests (customization), and even vendors who charge a fortune for those
requests realize that the situation has to change.”
Senior VP at a global BSS supplier
Communications service providers’ out incorrect or incomplete bills to BSS transformation projects have
(CSPs’) business support systems (BSS) 1.5 million customers after deploying morphed into huge, complex programs
have been under strain for a very long a new billing and customer that almost never deliver on time. One
time. The fundamental issue is relationship management system. of the highestprofile, failures was a $1
customization which accounts for a billion deal between Russian telecoms
huge proportion of the cost, time to About ten years ago telcos group VEON and supplier Ericsson. In
deploy and functionality. And the transitioned to bestofsuite solutions 2019, three years after the 11country
customization is ongoing, with systems from a smaller number of vendors project was signed, Ericsson was
requiring continual maintenance by capable of offering endtoend required to pay $350 million in
expert engineers. Indeed, dissatisfaction solutions. This approach had the compensation to VEON.
with the outcomes of BSS advantage of giving CSPs a “single
transformation programs has resulted in throat to choke” but also turned out A senior architect working for another
deterioration of the relationship to be quite expensive because of large European operator group
between CSPs and their suppliers. “change requests”, meaning the reiterates the problem:
“
addition of new features or
How did we get here? capabilities that sit outside the scope
of the main contract. While the best
BSS are critical systems that handle ofsuite approach reduced custom
product, order, revenue, and customer interfaces, solutions typically did not
management. CSPs’ businesses cannot cover the entire operational and On average, our large
function without them. The telecoms
industry has been through cycles of
business support system (OSS/BSS) transformation projects
stack, which meant that custom arrive 150% over budget and
“bestofbreed” and “bestofsuite” interfaces around the core system
approaches to acquiring BSS from were still needed. And further time,” he says. “We have
suppliers, but neither has delivered the customization resulted from CSPs found that there is a direct
capabilities CSPs want, on time or insisting that the software be adapted
within budget. correlation between the size
to their individual operational and
business requirements and processes. and success of these projects.”
Twenty years ago, CSPs typically
bought bestofbreed solutions and Read this report for an indepth look
then relied on systems integrators to at how CSPs procure OSS/BSS: As a result, his company has firmly
knit the components together. Results committed not to undertake any
were disappointing, with CSPs often transformation projects that are not
encountering problems with delivered using Agile methodology or
customized interfaces between with commercial terms based on
incompatible systems, some of which business outcomes delivered
directly impacted their customers (and incrementally.
relationships with them). For example,
in 2004 UK mobile operator O2 sent
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The big picture
What’s inside?
This report examines the state of BSS today within CSP organizations and offers an indepth look at an initiative within TM
Forum to develop a reference implementation for a core commerce management system. Read it to understand:
n Why issues like lack of standards and skills and vendor lockin are difficult to address
n What the Open Digital Architecture (ODA) is and how it is being developed
n Why companies like Orange and Vodafone have committed to collaborating on ODA
n The relationship between ODA and the Open Network Automation Platform
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Section 1
Why is the business
model broken?
“We haven’t found a way of moving away from the bestofsuite approach.”
CIO of a large European CSP
“
suppliers rests on both sides. CSPs have customization is not always
endeavored to tighten up contracts to evident when the initial contract is
minimize the cost overrun caused by agreed or signed. It can result if a
change requests, but as a result many requirement is removed during
vendors believe they are being unfairly contract negotiations in order to Some costs are costs we
squeezed (and punished) with achieve a lower price, or in some
contractual terms that force them to cases, the business requirement
should never have seen –
assume all the financial risk. arises after the contractual process they are costs just to
BSS is no longer an attractive market for
is finished. In either case, CSPs make the systems work.
have viewed the customization of
suppliers. Large players are Our business genuinely
BSS as a competitive differentiator
reconsidering their commitment to believed we were buying
in their relationships with their
delivering BSS or have scaled back
offers. Ericsson, for example, ended
own customers. out of the box, but we
delivery of its bestofsuite solutions still faced big cost
Operators increasingly are
after writing off $690 million in the
realizing, however, that the overruns. Even bits from
fourth quarter of 2018. Meanwhile,
potential benefits of customization the same vendor don’t
CSPs have been reluctant to buy BSS
are offset by the additional cost always work together.”
products “out of the box”, partly
and time it takes to deploy the
because they believe the costly
capabilities in BSS systems. As
customization of solutions helps them
differentiate the products and services
they offer to their own customers
(see panel).
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Section 1
“
standardization effort has been TM
fundamental differences in the Forum’s Application Framework
approaches each team takes with (TAM), a systems map that captures
suppliers (see infographic below). The how business capabilities are
network business is heavily implemented in deployable,
standardized. Vendors tend to do recognizable applications. TAM wasn’t good enough
their own systems integration, and it
is relatively straightforward for an “The Application Framework provides
to say, ‘I want to buy one of
operator to swap out components a common language for communities these’,” Thomas explains.
from one vendor for those of another. who specify, procure, design and sell “Vendors would state
Decisions on which vendor to choose systems, so that they can understand
typically are based on price and
compliance to TAM, but
each other’s viewpoints,” says Dr.
confidence in the vendor’s ability Lester Thomas, Chief Systems you still needed to state
to deliver. Architect, Vodafone Group. “It your business requirements
provides logical grouping of to get what you needed.”
IT is different. Despite initiatives by applications, then describes each
organizations such as TM Forum to application’s functionality.”
Network IT
Minor role for systems integrators Major role for systems integrators
TM Forum, 2019
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Section 1
Intent
45 45
Architecture (ODA), which we’ll ambion but 7 17
relavely low 19 High label number +
36
discuss in detail in the next sections, maturity 40% 14
full roadmap (lots of
aims to deliver this kind of Commied APIs)
architecture. 20%
23 22
10 More mature deployments
tend to be from vendors with
Vendor lock-in 0%
smaller product porolios
(small circles)
Migration to a more open BSS market 20% 40% 60% 80% 100%
where CSPs can mix and match Maturity
applications from different vendors Each circle represents the scores for an individual respondent (anonymized)
represents a threat to the control that Size of circle indicates the number of Relevant APIs | Label represents the number of Commied APIs
IT vendors have exercised over their Results of assessment for Q3 2019
customers. Stories abound about
TM Forum, 2020
operators trying to switch suppliers
only to be told by the incumbent
vendor that the cost for the support
required to disentangle the solution technology partners have committed worldwide have resulted in highly
or for maintaining another product to using TM Forum’s Open APIs in complex backoffice environments.
would negate the benefits of relevant product applications, but Many operators have been forced to
switching vendors. progress in implementing the suite put quick fixes in place to combine
of 50+ RESTbased Open APIs has the billing systems of previously
Incumbent vendors also use other been mixed. separate companies, and they are still
forms of “soft” lockin. Clevel living with the results.
executives within supplier companies A recent survey of CSPs and suppliers
often make a point of developing released in November 2019 reveals And when CSPs do get around to
close relationships with senior CSP that vendors’ native Open API launching transformation programs to
management teams and then call on support lags behind demand from merge disparate IT systems, the
those friendships if they believe CSPs (see graphic above). priority is usually getting existing
subordinate teams within the customers onto a new system as soon
company are planning to choose a M&A headaches as possible so that the old one can be
competitor’s solution. decommissioned. As a result, new
When the telecoms market was
growing, it was easier for CSPs to systems end up being geared toward
In addition, CSPs build a significant protecting existing business rather
amount of internal expertise in tolerate a lessthanideal BSS
business model with suppliers. Now, than generating revenue from
working with the systems provided by new services.
a specific vendor. If a CSP switches however, every department within a
vendors, this expertise is lost and CSP is under pressure to drive The challenge is particularly acute in
internal teams must be retrained or operational efficiencies because – if emerging markets, where CSPs have
replaced. operators are unable to diversify into been hit harder by a slowdown in
new markets, they must cut costs to revenues than operators in developed
APIs can help remain competitive. markets because of their dependency
Adoption of common application At the same time, BSS requirements on the mobile business. The largest
program interfaces (APIs) is a good are becoming more complex as CSPs “bestofsuite” BSS vendors focus on
way for CSPs to combat vendor lock accumulate greater legacy in terms of supplying the lucrative European,
in and build an open market for BSS the products and services they need North American and North Asian
applications. So far, 17 of the world’s to support. During the past 20 years, CSPs because of the revenue
largest CSPs and 37 of their mergers and acquisitions among CSPs potential.
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Section 1
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Section 2
A radical, new approach to BSS
“We need to be more like a hyperscale tech company in terms of how we use software,”
CIO of an AsiaPacific CSP
71%
20%
We are already using outcome-based pricing and are pleased with the results
TM Forum, 2020
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Section 2
Vendors are also partnering with CSPs BSS for 5G and beyond and future business, including their
in DevOps teams to deliver new future digital services and ecosystems
software and systems on a The impetus for a new approach created by CSPs”.
continuous basis. A TM Forum survey towards BSS is as much about
conducted in December as part of enabling new business models to A subsequent TM Forum Catalyst
another research report on future flourish as it is about improving BSS proof of concept (see page 11)
operational support systems (OSS) for legacy telco services. For example, developed an interoperable reference
reveals that a quarter of operators are as CSPs deploy 5G they are exploring implementation of a core commerce
now using DevOps practices across many new opportunities that involve management system including a
operations and 60% plan to. leveraging their existing assets to product catalog and order
However, we believe that DevOps is provide services beyond connectivity, management service, marking the first
still mostly used for internal particularly in the B2B market. Such time TM Forum members had
development projects rather than services will mostly be sold using a collaborated to develop software
ones that involve external vendors. softwareasaservice (SaaS) model, code for testing. Joining Vodafone
which requires a different approach to and Orange in the Catalyst were
For more about future OSS, read this BSS. If every new service were to catalog vendors Globetom and Sigma
report: entail going through the same long, Systems along with systems
costly process of deploying an integrators IBM and SigScale.
FUTURE OSS: TOWARDS AN
OPEN DIGITAL ARCHITECTURE
associated support system, operators
Author: Tim McElligo, Senior Analyst
Editor: Dawn Bushaus, Managing Editor
November 2019
would never be able to achieve the Watch Orange’s Laurent Leboucher
agility, automation or cost savings and Vodafone’s Dr. Lester Thomas
required for success. discuss the need for a common core
commerce management system:
In January 2019, TM Forum’s
Sponsor:
Collaboration Community published
inform.tmforum.org
an exploratory report for members
entitled Business Operating System
Pioneer Project Report. Led by Orange
and Vodafone, the paper made the
case for creating “a common and fully
interoperable framework for CSP core
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Section 2
management
Pre-sales Invoicing
Party (360-degree view)
Rights Launch configuraon subprocesses Copy bill
Billing account, invoice (offer for create, contract for change) items
Manage catalog
Manage offer Order
Front ends
TM Forum, 2020
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Section 2
Glass and black box As Thomas explained in Section 1 (see best practices and information models
page 6), TM Forum’s Application to make it easier to do business.
Since the inception of the BOS Framework (TAM), which is a systems However, for the ODA Reference
project, CSPs and suppliers have been map that captures how business Implementation to be successful, it
debating about the balance between capabilities are implemented in needs more partners. Says Thomas:
glass box and black box components,
“
deployable, recognizable applications,
and whether the ODA Reference is not specific enough to allow
Implementation can be considered an operators to swap components from
open source project. We’ll discuss this different vendors in and out.
more in the next section, but it’s Nevertheless, something like this is
important to point out that all needed – although it must be We need every multinational
interested parties are adamant that
the aim of the project is not to build
softwaredefined. telco and 30 to 40 vendors to
applications that replace the Given efforts to move towards come on board. We are at
commercial offerings of today’s BSS microservices architectures in cloud 5% to 10% of where we need
vendors. software generally, there could be a to be. We need to get early
case for adopting such an approach in
Rather, the project focuses on how to BSS. However, decomposing existing components out the door
ensure that CSPs can integrate BSS applications categories would be and to do quick [proofs of
different products from different extremely complicated and time
vendors, swap one out for another, concept].”
consuming and would likely be seen
and add products without the need as a direct challenge to many of
for lengthy, costly customization. But today’s BSS vendors. As such, the At TM Forum’s Digital Transformation
deciding exactly what the project team has ruled out a event in Dallas in September, two
components are is difficult. In the BSS microservices architecture because it more companies, Netcracker and
market, not all vendors offer similar would be too granular to specify. Oracle, expressed an interest in
components. As Dr. Lester Thomas, Instead, they are seeking to define working on some components. For
Chief Systems Architect, Vodafone components which will resemble the project as a whole to retain
Group, acknowledges: existing BSS applications. Such momentum it is important to get
“
components are likely to have five to different components standardized
10 services within them. and put into a GIT repository.
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Section 3
Challenges to adopting ODA
“As things stand today we don’t have the resources. They’ve got to come from somewhere,
and I don’t know how that’s going to happen.”
Vance Shipley, CEO and Founder, Sigscale
The proposal for the Open Digital As a model, the team is looking to the Comparing architectures
Architecture Reference Open Network Automation Platform
Implementation is extremely (ONAP) open source project, which is ODA and ONAP are complementary.
compelling, but that does not mean it building a platform for realtime, Looking again at the ODA Reference
will happen. For the initiative to policydriven orchestration and Implementation architecture (see
succeed, communications service automation of physical and virtual page 14), the core commerce system
providers (CSPs) must collaborate, network functions. ONAP, which is focuses on customerfacing business
and they must commit staff and managed by the Linux Foundation, support system (BSS) functionality,
financial resources to the projects. In was formed in 2017 through a merger such as order capture, orchestration
addition, a critical mass of suppliers of two open source projects founded and billing, while ONAP works in the
must recognize and accept that if they by AT&T (which contributed a large Production layer, focusing on
do not embrace a new approach, they proportion of the software code) and networkfacing operational support
may not continue to win CSPs’ China Mobile. Other key players system (OSS) functionality such as
business. including Orange, Vodafone, Reliance orchestration and management of the
Jio, Deutsche Telekom, Ericsson and technical catalog and inventory.
Nokia also support the project.
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Section 3
management
Pre-sales Invoicing
Party (360-degree view)
Rights Launch configuraon subprocesses Copy bill
Billing account, invoice (offer for create, contract for change) items
Manage catalog
Manage offer Order
Front ends
TM Forum, 2020
ODA and ONAP both envision the project’s overall success and impact In addition, opinions vary widely as to
creation of a common architecture on the industry remain somewhat whether ONAP is production
that allows suppliers to develop unclear. deployable or whether it needs to be
differentiated features on top. heavily customized for different CSPs.
Similarly, integrators would be freed The process of creating a new In short, the challenge for initiatives
up to focus on helping CSPs develop architecture has taken longer than such as ONAP (and ODA) lies in
innovative products and services, was originally envisaged when ONAP securing the involvement of a critical
rather than spending all their time on was started, but in the meantime, mass of working partners and
complex integration tasks. technology has evolved. Network contributors while at the same time
functions virtualization (NFV), for moving fast enough to capture the
Now in its fifth release, ONAP example, has become yesterday’s benefits of the latest technology.
includes several million lines of code, story, while the focus now is on
and its technical committee cloudnative technologies that use
represents a veritable who’s who of containers and microservices.
CSPs and vendors. Even so, the
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Section 3
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Section 4
Make it happen: Join the ODA team
Aside from application program interfaces (APIs), TM Forum members traditionally have not
created software code. But in order for the Open Digital Architecture (ODA) project to enable
real change, a critical mass of communications service providers (CSPs) and suppliers must
collaborate on a reference implementation. Below are some recommendations for getting
started. If you would like to learn more about ODA or to join the project, please contact TM
Forum’s VP, Architecture & APIs, George Glass.
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Section 4
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Additional features & resources
19 | The future of BSS lies in the public cloud
23 | Operators Need Digital BSS to Innovate in the
Platform Driven Ecosystem Economy
26 | TM Forum Open Digital Framework
27 | TM Forum research reports
28 | Meet the Research & Media team
The Future of BSS Lies in
the Public Cloud
Predicting the future can be a challenge. But one thing is clear. In 10 years, the BSS of every
telco will be on, or far along the way to, public cloud. To understand the future of BSS, let’s
explore the current challenges (and opportunities) that face most telecoms.
At a high level, BSS allows telcos to 1. Migrating to the public when you build your applications as
monetize their core products, services, well as deliver and manage them.
and partner solutions, while also aiming cloud (because private
to provide tools to craft the best cloud is a fake cloud) 2. How to build your
experience for their customers. Over
time, operators have tailored these Only public cloud — with its virtually application (hint: it must
unlimited, standard compute power
systems to the extreme in an effort to
and holistic software and solution be cloud native)
address a multitude of market demands.
portfolio — offers you scale, There is a tendency to use the term
This practice has created layer upon
performance, and security. Public “cloud native” without truly
layer of customizations, also known as
cloud allows you to stop constantly understanding what it is or its real, full
technical debt, making future changes
buying and refreshing hardware, potential. For some telco CTOs,
much more complex and resource
managing viruses, and handling its vendor use of terminology, such as
intensive, as legacy customizations
lifecycle. Private cloud, mistakenly “cloud ready,” can be misleading. The
migrate from version to version.
confused with public cloud, is, in consequence can be a steep learning
Therefore, many times operators have
reality, just onpremise in disguise, curve when making the transition to
had to remain on the same monolithic
offering only virtualization. cloud and a loss of potential savings.
applications they acquired years ago —
Cloud native does not mean just
missing an opportunity to evolve and
running on the cloud — and the use
capitalize on the latest market trends.
of containers is not enough either.
Operators, however, are now You need decomposed architecture
reconsidering this approach as they and the use of public cloud solutions
evaluate their needs for upgrades and versus thirdparty, proprietary, legacy
digital transformation. The liability of solutions on the ground.
those legacy systems — aging, holding One of the primary public cloud
benefits — the massive cost savings — Cloud native means that an application
heavy technical debt, and preventing
demonstrates a major difference. When is built from the ground up to work on
CSPs from utilizing business
comparing the different deployment the public cloud, and it means that you
opportunities — also makes the
options, you will find that while public can leverage its compute power and, as
systems inefficient and costly.
cloud can help you save up to 80% on an extension, the powerful software
Given these realities, Optiva believes your BSS costs, private cloud is actually and solutions cloud native make
the future of BSS involves three major even more expensive than running available to you. Cloud native BSS
changes. And the public cloud is a applications on bare metal. integrates more quickly with other
stimulus for these changes — namely, applications and solutions also running
BSS delivered on the public cloud will But there is a “right way” to achieve on the public cloud or offered by public
afford telecoms access to these results. Simply running an cloud vendors. This is how you
technologies available only on the application on a cloud will not suffice. leverage the power of the public cloud,
public cloud. This transformation will Instead, look at the public cloud as get its gamechanging benefits, and
allow telecoms to compete and meet more than an infrastructure or satisfy your market requirements
future market needs without the hardware provider, and make sure you more efficiently.
complexities of customizations. leverage the public cloud capabilities
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3. How to deliver and revenue management software on the scalability enable 10 times database
public cloud. Operators globally are performance and make it the best
manage it (it’s all leveraging our rearchitected products OSS/BSS solution for telco innovators.
about SaaS) and discovering the proven benefits.
“
Optiva offers its customers two
Software as a service is not just a leading products that provide
business model that enables telco operators two times faster time to
operators to move from CAPEX and a market and the lowest TCO with up
perpetual license to a term license — to 80% savings.
from “owning” a solution and its “The cost of customizations
operational liability to receiving a Optiva BSS Platform™, rearchitected is not linear. Every
service. SaaS is also a way to deliver and made available on the public cloud, customization adds
software and manage it — making it “as is Optiva’s new entry into the SaaS
a service” is just the beginning. SaaS
complexity and technical
market. It provides unlimited capacity
allows customers to deploy multi with a worryfree, payasyougrow debt, increasing the time and
tenancy applications with their own model. The multitenant, bestinsuite cost to complete upgrades
configuration over a generic product. platform is a fully managed, endto exponentially and making it
With that, they can enjoy a constant end, cloudnative product. Therefore, it very difficult to keep the
stream and introduction of new allows operators to focus on their
functionalities and features as their
underlying technology
business, not on deploying and
specific tenant version is constantly managing enterprise software. current. CSPs believe they
updated based on the generally must customize software to
available product on the public cloud. Optiva Charging Engine™ is a flexible, improve the customer
robust, endtoend converged charging
solution optimized for the world’s
experience, when in reality it
Our Products largest CSPs. Whether your customer is the opposite.”
Optiva is the leader in providing base is 5M or 500M, the unique Danielle Royston, CEO, Optiva
telecom operators with cloudnative pricing model, functionality, and
“
Optiva’s Cloud Journey n Decomposition and containerization
of function and business domains
The road from traditional/legacy to and subdomains to be self
futureready BSS includes five steps. contained and scalable based on
The big question for most This is the journey that Optiva made the business needs (e.g., charging
over the last three years with its
operators is how to embrace pledge to invest US$100M in cloud
types, campaigning, notifications,
cloud-native applications and renewal) and functional subdomain
roadmap. This was not a “one and (e.g., rating, charging, balance
public cloud. The “lift and done” or “lift and shift” strategy as handler, protocol handler)
shift” approach of cloud employed by other vendors because
such an approach will not give access n Reusability across multiple
enabling an entire application to the real and full benefits of the functions, such as cache
and putting it into a container public cloud. management, monitoring, and
can deliver some quick 1. Decomposition and
notifications
benefits … but this approach containerization n Application of Kubernetes to
does not leverage all of public Optiva implements the “12Factor orchestrate and manage different
App” methodology to support its containers as the CI/CD pipeline
cloud’s advantages.”
decomposition process. and automated operational
George Glass, VP, Architecture & APIs,
TM Forum CSPs need an evolutionary infrastructure for handling
architecture to embrace cloud, Sep 2019 optimized elasticity and scalability
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2. Use of public cloud products 3. Open architecture 4. Productization
Optiva leverages new, advanced Optiva implements an open A major stepping stone on the road to
technologies and software solutions architecture approach to its products, offering a complete SaaS model is to
available only on the public cloud, allowing: fully productize the application and
such as orchestration framework, remove technical debt. This is
database management, and security. n Ease of integration to other achieved while also maintaining the
This equips Optiva’s customers to solutions in the overall OSS/BSS ability to satisfy multiple digital
leverage the large investments made stack and complementary solutions service providers’ (DSPs’) needs,
by public cloud vendors and open in the ecosystem, using standard which vary between markets and
source organizations, and it gives TM Forum OpenAPI as a reference services. It is achieved only through
them access to the most mature and model application of the following
advanced software solutions for guidelines:
n Enhanced functionalities with
business application development and
available cloudbased products, n Incorporate legacy customizations
operation. Public cloud products are
such as specificallyembed artificial to main product functionalities
optimal replacements for traditional,
intelligence (AI) and machine
legacy, thirdparty software because
learning (ML) tool outputs to be n Maximize configuration capabilities
they combine the technology and
used for the optimization of for the product and transition from
feature fit for digital use (e.g., scaling,
different Optiva product processes heavy customization to flexible
automation, alwayson, ease of use)
configuration
along with the reduced risk of a SaaS Optiva products provide data and
model. For example, Optiva replaced data processing transparency, n Include in the core product
Oracle with Cloud Spanner, which is supporting access to system data to development roadmap all new
available only on Google Cloud facilitate the use of the information features and functionalities defined
Platform. This database management for ML and AI tools (e.g., BigTable, as relevant
solution on the public cloud meets BigQuery), and provide easy access to
Optiva’s application needs in a way its realtime event stream through its n Use CI/CD as a method for
that Oracle could not (and at 1/10 of event service bus for consumption by managing the introduction of new
the cost). Some of these requirements other applications in the operator functionalities to be rolled out to all
that Cloud Spanner provides include a ecosystem. production instances — by
relational structure with horizontal productizing the solutions and
scaling capabilities, distributed introducing constant automated
capabilities with strong consistency, rollout of capabilities, there is
high availability, SLA, and builtin elimination of software endoflife,
disaster recovery capabilities. and operators always have access
to and are using the latest product
version without need for heavy
version upgrades
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5. SaaS business model
The cloud economy introduces new commercial business models and creates a new SaaS approach that offers new
benefits and value around commercial flexibility for operators. To achieve this, Optiva offers its solution in a flexible “pay
asyougo” subscription fee that does not require major CAPEX investment or large upfront investments. Smaller
operations and new lines of business may start small, grow, and pay upon an increase in demand. Doing so helps reduce
risks and better aligns spending with generated revenues. It also allows service providers to enjoy fully managed
operations, including infrastructure management, software management, and business operations on the public cloud,
reducing operators’ ongoing internal operational costs.
Telecom operators have been customizing their BSS applications over the years to tailor them to meet market
demands. Unfortunately, many times that was not the outcome, and those big monoliths with layers of
customization failed to be agile enough to provide the customer experience required by today's empowered
customers. It also proved to be very expensive for operators and not cost effective.
To change that, operators are moving BSS applications to the public cloud with Optiva, and they are doing so with
a productized offering, cloudnative architecture, and the “asaservice” model. This approach allows our customers
to enjoy the real benefits of the public cloud — up to 80% savings on their BSS total cost, a flexible commercial
model, seamless access to powerful innovation, increased agility, and faster timetomarket.
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Operators Need Digital BSS
to Innovate in the Platform
Driven Economy
The telecom business environment and the competitive landscape are changing radically.
Operators are no longer only competing with each other, but against a raft of disruptive and
innovative players that have entered their market. 5G is acting as a catalyst for further
disruption, opening up many opportunities, including other industry verticals competing for
value added services’ revenues. At the same time, operators themselves are increasingly
delivering services through or with partners in ecosystems.
To innovate and compete in this Digital BSS must be able to aggregate Cross-industry loyalty
market, the role of BSS is services, accommodate changing
fundamental and crucial to support relationships with partners and other schemes
the fastchanging requirements. BSS players, faster and with greater At first glance, this might not look like
is the monetization engine, but in the flexibility, to support new business a musthave for Digital BSS, but
digital era, it’s no longer only about models. BSS is a cornerstone of loyalty schemes that cross borders
billing and charging for a core innovation, and we can expect future between sectors will become
portfolio three or four services; now functional characteristics to embrace increasingly important, reaching way
operators are competing in platform flexibility, cloud scale, intelligence and beyond the bounds of voice, data and
based economy where innovation is multichannel engagement. Let’s take video consumption, and service
created through partner ecosystems. a look at some of the critical adoption. The disrupter here is the
functional areas that Digital BSS must new mobile operator, Rakuten Mobile
Even before 5G becomes mainstream, enable. in Japan. Its parent company, also
operators are providing a wealth of Rakuten, operates in more than 70
services, from banking to smart
healthcare, security, and much more
Going cloud native sectors and its customer membership
BSS of the future must have a cloud and loyalty scheme spans all of them,
themselves and with partners. As from loans, credit cards, travel and
their revenues from consumers either native architecture, to provide
unprecedented levels of flexibility and insurance to a wide range of
flattens out or falls, most are looking consumer goods.
to their enterprise customers and scale due to its modular nature and
businesstobusiness (B2B) and adaptability. Cloud native Customers are offered a whole
B2B2X opportunities for growth architectures will allow operators to lifestyle experience that isn’t matched
beyond connectivity.This is leverage the cloud’s multitenancy by any other ecommerce giant.
highlighted by Vivo, the subsidiary of characteristics to build consistency of Rakuten intends to take its mobile
the Telefonica Group operating in process across OpCos, scale based on business and deployment model –
Brazil, where Netcracker’s Digital BSS service demands, minimize building a cloudnative infrastructure
solution enables Vivo to set and customization and significantly reduce from scratch – global. The parent
manage product pricing, promotions time and cost for development. company already operates in some
and delivery strategies across its capacity in more than 29 countries
diverse enterprise lines of business, and regions, and has more than 1
resulting in a better experience for its billion customers.
B2B customers.
inform.tmforum.org 23
Multiple vertical Partner management and Customer engagement
businesses multi-party payments Revenue management aside, the
other key to innovating and
As 5G has already demonstrated, the Managing partners and related
competing in the digital world is how
potential revenue from vertical services are now a ubiquitous part of
effectively operators engage with
centric services is tied to the actual virtual every operator’s service
their customers. At work and in their
ability to build a profitable partner ecosystem, where different partners
private lives, customers are used to
ready business model that sets a typically offer a variety of valueadded
the level of service provided by digital
value, prices and bills for these new services and complement the
natives and have come to expect it
services. As such, BSS must be able operator’s existing service offerings.
from all their providers. This puts
to support multiple vertical This means partner management and
pressure on the operator to enable
businesses and their various models management of multiparty payments
multichannel communications, data
simultaneously. Consider platform must be embedded in BSS. Partner
integration across those channels to
providers such as Amazon Web related service revenues will likely will
ensure customer activities are visible
Services, Google Ads and YouTube…all be paid in different ways
and understood regardless of the end
are successful because partners (subscription, ad hoc, pay as you go,
point, and ensure that service
clearly understand how they can use and so on), and also may need to be
promised are in fact services
them to earn revenue. To compete, split between various parties.
delivered.
operators must offer this facility, and
ensure it is easy for partners to use For instance, an operator selling
and benefit from. Being easy to do security services through a partner on Intelligent customer
a subscription basis of $10 or $20 a
business with is the first rule for
month may need a three way revenue
journeys
successful business, and this is even
share between the security service Applying artificial intelligence (AI) to
more so as part of an ecosystem.
provider, the operator and any other customers’ journeys allows an
partner involved. Also of note is how operator to constantly evolve how it
B2B2X business models certain services will have multiple engages with customer based on
Enabling multiple business models touch points which BSS must manage what it ‘learns’ about their behaviour,
necessitates having a multirated, effectively. needs and preferences. This could
multitenanted Digital BSS to support range from which channels they tend
partners and other players who Opportunities at the edge to use at what time of day for what
themselves need to rate and charge purposes and how they like to be
for services, then bill their own BSS will be key in enabling operators to communicated with.
customers accurately and quickly. This leverage the newfound power at the
edge The ability to support new, low
keeps the ordertocash cycle as tight
latency services is already bring
Proactive, not reactive, care
as possible, yet still allows for
accelerated in every sense by 5G, Thus, Intelligent proactive care that uses
flexibility in the way revenues are
BSS layer must be able to provide data intelligence to support early
divided or shared.
distributed rating and charging, and action helps address any issues that
online charging across the edge. arise before they turn into problems,
New payment mechanisms helping to prevent churn and increase
The number of new payment The edge sites collectively create a customer satisfaction. Plain and
mechanisms has expanded over time, wider range of application and service simple…if you’re not providing
giving the end customer newfound options which can be dynamically satisfactory service to your
flexibility in how to consume and pay switched at different times of day, for customers, you are likely losing
for services. This trend will continue, example, or to relieve congestion, customers and losing revenue.
thus extending BSS capabilities relying on the dynamism of cloud
beyond electronic fund transfer and native network functions and Pricing and promotions
credit cards, to handle Apple Pay, infrastructure. Maximizing the value of
the edge requires a BSS that can be Being able to offer dynamic pricing
digital currencies, and nearfield
equally dynamic and adaptable to allow and promotions to customers at the
communications (NFC) for contactless
operators to extract the most value out most appropriate moment, such as
payments.
of their resources for their own internal reaching data capacity, location based
efficiencies, but also to give their offers, or crosssell/upsell create new
customers the best quality of services, opportunities for greater customer
and their customers’ customers too. satisfaction, loyalty and revenues.
inform.tmforum.org 24
The case for digital BSS with our bestinclass security converged rating and billing
features to keep CSPs customer, capabilities. In particular, Netcracker is
Netcracker's cloudnative Digital BSS service, operations and network data helping the company accelerate its
solution ensures operator's ability to secure. ordertocash cycles and build a
reduce costs and unlock new revenue foundation on which to deliver and
streams by monetizing crossservice Netcracker’s end to end Digital BSS manage new revenuegenerating
offerings and multipartner business and OSS is already helping Telefónica services.
models. Netcracker's solution enables become more efficient today, by
analyticsdriven dynamic discounts speeding up service delivery, In summary, Digital BSS is all about
and promotions, as well as cross implementing zerotouch provisioning helping to reimagine the scope and
channel, realtime interactions so you and unifying product and services capabilities of operators’ businesses in
can deliver a superior customer bundles through a single catalog. the future – always remembering that
experience and drive your evolution Telefónica Business Solutions will the future starts right now.
into a digital service provider. All leverage Netcracker's full Revenue
Netcracker solutions are equipped Management solution, including
About Netcracker
Netcracker was founded in 1993, and has been a whollyowned subsidiary of NEC Corporation since 2008. Driven
by its focus on R&D, Netcracker’s endtoend product portfolio and related professional services enable
telecommunications and cable service providers, utilities, financial services, logistics and other business services
providers to transform their mission critical back office and front office processes.
Netcracker offers an extensive range of solutions for digital service providers, such as business service innovation,
5G and digital service monetization, IT transformation, hybrid network operations. The company has over 250
customers across more than 60 countries in the Americas, Europe, MEA, and APAC regions. Netcracker remains
steadfast and focused on enabling monetization of any service on any network, bringing together 5Gready
components that enable proactive customer engagement, dynamic pricing and bundling, partner powered business
models, and targeted AI driven customer engagement.
Netcracker’s Digital BSS solution is the optimal choice for service providers looking for a converged platform to
optimize customer experience, monetize innovative new services and provide a foundation for business agility.
inform.tmforum.org 25
TM Forum Open Digital
Framework
inform.tmforum.org 26
TM Forum research reports
HOW TO LEVERAGE
DATA ANALYTICS
Author: Mark Newman, Chief Analyst
Editor: Dawn Bushaus, Managing Editor
December 2019
Sponsors: Sponsors:
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TTT
DT
D
Sponsor:
Sponsor: Sponsor:
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5G: EVOLUTION
AND REVOLUTION
Author: Mike Hibberd, Contribung Analyst
Editor: Dawn Bushaus, Managing Editor
April 2019
NETWORK
BL CKCHAIN: AS A SERVICE:
ADDRESSING THE FULL
WHERE’S THE VALUE ENTERPRISE
FOR TELEC MS? OPPORTUNITY
Author: Tim McElligott, Senior Analyst
Author: Paul Ridgewell, Contributing Analyst Editor: Dawn Bushaus, Managing Editor
Editor: Dawn Bushaus, Managing Editor
Sponsors:
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inform.tmforum.org 27
Meet the Research & Media team
Report Design:
Report Author: Report Editor:
Intuitive Design UK Ltd
Mark Newman Dawn Bushaus
info@intuitivedesign.co.uk
Chief Analyst Managing Editor
mnewman@tmforum.org dbushaus@tmforum.org Published by:
TM Forum
4 Century Drive,
Senior Analyst: Editor, Digital Content: Parsippany,
NJ 07054
Tim McElligott Arti Mehta
USA
tmcelligott@tmforum.org amehta@tmforum.org
www.tmforum.org
Phone: +1 9739445100
Fax: +1 9739445110
ISBN: 9781945220678
Customer Success & Commercial Manager,
Operations Manager: Research & Media:
Ali Groves Tim Edwards
agroves@tmforum.org tedwards@tmforum.org
© 2020. The entire contents of this publication are protected by copyright. All rights reserved. The Forum would like to thank the sponsors and advertisers who have enabled
the publication of this fully independently researched report. The views and opinions expressed by individual authors and contributors in this publication are provided in the
writers’ personal capacities and are their sole responsibility. Their publication does not imply that they represent the views or opinions of TM Forum and must neither be
regarded as constituting advice on any matter whatsoever, nor be interpreted as such. The reproduction of advertisements and sponsored features in this publication does not
in any way imply endorsement by TM Forum of products or services referred to therein.
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For more about TM Forum’s Open Digital Architecture Project,
please contact George Glass