With the increasing uptake of smartphones and data services, tracking and monitoring of these devices and applications is becoming challenging for service providers. In order to manage substantial network churn, these operators are increasingly investing in operational support systems (OSS) and business support systems (BSS).
In an interview with tele.net.in, Manoj Dawane, vice-president and head-engagement practice, Ericsson India discusses the opportunities and challenges offered by the Indian OSS/BSS segment. He also highlights the difference between the Indian and global OSS/BSS spaces and the emerging trends in this market.
Excerpts?
What are the business opportunities in the Indian OSS/BSS space?
With the launch of 3G and 4G technologies and the significant uptake of data services, the OSS/BSS industry is poised to grow and expand in the near future.
So far, revenues from voice services have driven growth in the Indian telecom industry and voice still accounts for 85 per cent of operators? total revenues. However, going forward the emphasis is going to be on data-centric services, given the increasing demand for such services.
Today, users are no longer using their handsets for just making voice calls, but are using multiple applications as well. To support this, a telecom network has to have adequate coverage and enhanced capacity. Further, the network should also support features which recognise and monitor the usage of different applications. This is where OSS and BSS are required. Essentially, OSS covers network availability and management, while BSS relates to the network?s billing functions.
What are the key drivers for OSS and BSS market in the country?
The increasing uptake of data is proving to be the biggest driver for the country?s OSS and BSS market. When mobile telephony was predominantly voice-led, billing was simpler than for data services.
However, over a period of time, the industry has developed and adopted various methodologies such as the time of day, day of week, month of year concepts and prepaid, post-paid, wireless and wireline platforms for billing voice services.
Data oriented billing is more complex. This is because on an average, a consumer uses 50 to 60 applications, predominantly social media. This increases the complexity involved in billing, especially since each URL may have to be billed separately. For example, if a consumer has to be billed for using six gigabytes of data while using Facebook, then the system has to first track at what time of the day the consumer was using Facebook. Further, it has to keep a tab on when the consumer exhausts the data allotted to them (6 gigabytes in this case) in order to generate a bill for data usage beyond the limit. This tracking and billing process is supported by BSS. In sum, OSS and BSS act as facilitators that help operators? monetise their services and improve their bottomlines and toplines.
How has the OSS segment evolved in the country? What are the challenges facing it?
Mobile networks introduced in the 1990s had been built using radio standard time division multiplex technology and CDMA technologies. These technologies were standard network architectures with known protocols. Today, networks have shifted to internet protocol (IP).
Also, various network components, such as microwaves, radios and BTSs are now being supplemented by IP-enabled devices and elements. In this situation, OSS is being used to manage the network. The main challenge before the OSS segment is to keep pace with the changes taking place in the technology space, with the launch of new devices. In this context, the OSS system has to be continously upgraded to recognise new devices. So, in sum, the identification and tracking of devices has become critical.
What are the emerging trends in the OSS segment?
Essentially, an OSS system identifies and communicates to the customer resource management system (CRM). This has to be carried out on a certain protocol which needs to be caliberated. This is called assurance.
This is becoming very popular in the OSS system, because it is directly related to the profitability of the business. For instance, if an operator can identify why a call drop took place, it can take the necessary measures to stem the churn. This entails taking corrective steps to increase the longevity of the network, thereby positively impacting the overall average revenue per user as well as its overall revenue.
What are the challenges faced by vendors in the BSS segment?
Challenges in the BSS segment are arising owing to the rapidly emerging concept of a converged network. Today, consumers prefer to receive a single bill for the different services they subscribe to.
Also, consumers are increasingly opting for shared plans. If a consumer is using a certain amount of data, they would prefer to equally distribute it amongst multiple devices such as the iPad, IPTV services, laptops or a smartphone. So, a BSS system has to consider that the billing is not for an individual but is for the entire household. The challenge in the BSS emerges from the fact that each device has a different bit rate of communication; screen resolution and the content renders differently in multiple screen environments. The system has to be cognizant of the fact that the content has to be billed the same way, irrespective of the medium of data consumption (i.e. the device).
How does the uptake of OSS/BSS in India compare to global markets?
The Indian telecom space is the most challenging in the world. In no other global telecom market does the prepaid market comprise of over 95 per cent of the overall space. This is the main factor distinguishing the Indian telecom space from the rest of the world. This segment requires instantaneous billing for activities such as browsing the web, etc. To meet this demand, the OSS/BSS platform has to function in real time.
Secondly, the global average talktime does not exceed 200 minutes, whereas, in India, it stands at around 400 minutes. The Indian telecom industry is churning huge amounts of voice and data usage. This increases the number of records (transactions) to be handled by OSS/BSS platforms. Even with low ARPUs of Rs 50 or Rs 60, the minutes of usage will be as high as 200. This requires a highly resilient and robust network and an equally strong OSS/BSS system.
