Key Challenges
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Industry trends include:
- Consumers are demanding immediate and convenient access to telecommunications and entertainment services from any device, from anywhere and at any time from service providers.
- In these next-generation services, the business value and intelligence are being increasingly enabled by software in network.
However, offering convergent communications services is difficult. The business systems at service providers and software platform vendors (COTS OSS and BSS vendors, and mobile applications platform vendors) have outpaced the growth of their enabling communications software systems. Due to this lag,
- The way software is created today adds 75% overhead costs, and
- The way software is implemented makes these costs recur throughout the software lifecycle.
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Costs to Service Providers and Subscribers (You)
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This has led to increased customer churn, longer time-to-market, longer order-to-cash cycle, not integrated diverse product launches and lack of one view of customer. Consequently, service providers incur the following:
- Longer time to market (TTM) new products and services.
- Significantly higher total cost of ownership (TCO) of software product (applications) development and systems integration.
Consumers’ needs and expectations are not met in a timely and cost-effective manner.
As the telecom industry is $1.3 trillion currently, including $260 billion of software sector, the magnitude of these challenges faced and costs incurred by this industry is significantly large.
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Imperative
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To overcome these challenges, new business models are harnessing untapped opportunities in the value chain. These models offer creative, new services and applications in real-time with reduced risk.
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