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Summary

Telefonica announced a deal with NetCracker last week to undertake a major business support systems (BSS) transformation project for its operators in seven countries in Latin America. As LTE rollouts gain pace and the digital transformation of operators becomes increasingly important, BSS transformation projects are getting underway for telcos in more mature markets. With this deal, Telefonica shows that telcos in Latin America and other emerging markets too cannot afford to delay such projects.

BSS transformation projects are on the rise globally

Ovum predicts that BSS revenues will reach $29.3bn by 2020. Much this revenue will come in the form of BSS transformation projects, and Telefonica has been one of the early adopters of these for telcos in Latin America. The company’s latest deal with NetCracker, to deliver a major transformation project for its operators in seven countries in Central and South America, extends its transformation efforts to 11 countries in Latin America overall. With this project, Telefonica hopes to improve the overall customer experience while reducing the go-to-market time for new product and service launches. NetCracker aims to do this by updating Telefonica’s billing, rating, charging, and provisioning operations, and it will also create a new customer relationship management (CRM) platform.

BSS transformation projects are expected to increase in number globally. As most LTE networks around the world have now been deployed, telcos need to invest in upgrading their BSS to monetize their benefits and the increasingly digital lifestyles of their consumer and enterprise customers, and BSS transformation projects are the next logical step. LTE capabilities open up a limitless number of new revenue streams while increasing the number of zero-rated events. The digital trend requires faster response times and more appropriate and timely customer management. Telcos therefore need new and more agile billing systems that will accurately capture all revenue and billing events while providing valuable customer insights that can be used to enhance the customer experience. Furthermore, the market demand for omnichannel support will require telcos to invest in their customer management tools such as self-service CRM. These types of projects are more common among telcos in mature markets such as Europe and North America, but Telefonica’s enthusiasm for BSS transformation will put more pressure on telcos in Latin America to get them underway.

Appendix

Further reading

OSS & BSS Revenue Forecasts: 2015–20, IT0012-000106 (April 2015)

OSS/BSS Revenue Forecast 2015–20: Analysis, IT0012-000103 (April 2015)

Author

Chantel Cary, Analyst, Telecoms Operations and IT

chantel.cary@ovum.com

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