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OSS/BSS – Keeping the Telecom Business in Business

Expert Opinion

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Domagoj Mikac

Sep. 11, 2024
5 min. read
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As the telecom industry evolves with new technologies, the role of OSS and BSS becomes even more significant in supporting these advancements, so let’s demystify what these systems do and why they are so crucial for telecom operations.

What do telecom operators need to do business? The most important ingredient is customers, or more specifically, a geographical area with potential customers living and working in it. The second essential component is the fixed and mobile network covering this area. 

But a better question is, what do operators need to make a successful business? The answer is more complex and raises several additional questions, but we can all agree on the following essential points for running a telecom business successfully:

  • The ability to quickly introduce new, attractive services to ensure sources of revenue.
  • The ability to activate services quickly and accurately.
  • The ability to solve unexpected technical problems quickly.
  • The ability to control costs and minimize unnecessary waste of money.
  • The ability to charge for the services consumed by customers.
  • The ability to keep customers happy by providing a good customer experience.

All these aspects are managed by systems known as Operations Support Systems (OSS) and Business Support Systems (BSS). Telecoms are constantly changing and evolving, keeping pace with new technologies, so OSS and BSS systems must also adapt to these changes in parallel.

Operational Support Systems (OSS) and Business Support Systems (BSS) are crucial for keeping the telecom business operational. These systems ensure that telecom operators can manage their networks and business processes efficiently, meeting the increasing demands of their customers. 

Telecom operators are continuously investing substantial amounts of money in network transformation projects such as 5G, IoT,  SDN, NFV, Edge computing, etc., to meet their customers’ growing demands. While these network transformations introduce new capabilities, they also necessitate concurrent OSS and BSS transformations to support the delivery of new services to end customers. Unfortunately, OSS and BSS transformations are often overlooked and not conducted in parallel with network transformations. This oversight leads to complications and suboptimal monetization of new network capabilities. 

The root of this issue lies in the organizational structure of telecom companies, where network departments typically have a higher profile than OSS and BSS departments. These departments are often siloed, with network departments moving more swiftly than their OSS and BSS counterparts. This discrepancy highlights the need for telecoms to transform their networks in tandem with OSS and BSS systems.

Investing billions in cutting-edge network technology is futile if the technology cannot be delivered to customers effectively. OSS and BSS systems are essential for making this technology usable and ensuring a seamless customer experience.

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What is an OSS and Why is it Important?

OSS, or Operational Support Systems, are essential for supporting telecom network service assurance and operations. They help manage network components, service management, and ensure quality of service. OSS systems automate network planning, building, and optimization processes, making them cost-effective and efficient.

  • Network Planning: Network planning is the starting point before building a new network or transforming an existing one. It involves careful planning to ensure cost-effectiveness and optimal performance. It may need to cover various geographic profiles, such as mountains, valleys, islands, villages, and urban areas to reach every customer. Twenty-five years ago, planning the future network required a team of experienced engineers working in a room full of maps. Today, this entire process is automated, thanks to OSS.
  • Network Building: Once the planning is complete and budgets are allocated, the network needs to be built. OSS systems facilitate this process by providing tools for efficient network construction and deployment.
  • Network Optimization: Even after the network is built, there is a constant need for optimization. Changes in the surrounding area, such as new buildings or increased population density, require ongoing adjustments to the network to ensure a high quality of service to end customers. OSS systems enable continuous optimization to maintain network performance.
  • Service Fulfillment: OSS plays a critical role in service fulfillment, which involves activating services sold to end-customers. This includes configuring various network components delivered by different vendors to work together seamlessly, ensuring that customers can use services like calling, texting, and internet browsing without issues on all sorts of devices, fixed and mobile, in all kinds of locations.
  • Service Assurance: OSS also ensures service assurance by monitoring the network for any issues and resolving them promptly. This includes detecting disturbances in the network and taking corrective actions to maintain service quality.
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What is a BSS and Why is it Important?

Having a technically advanced network and excellent service quality is great, but operators also need to generate revenue. After all, it is a business. This is where BSS systems come into play.

BSS, or Business Support Systems, manages the business aspects of telecommunications, such as billing, customer management, and revenue generation through up-sale mechanisms.

  • Billing and Charging: BSS systems handle billing and charging for various services. They ensure that customers are billed accurately based on their usage, whether they have postpaid subscriptions or prepaid cards. BSS systems also manage different billing options, such as free minutes or data plans.
  • Customer Relationship Management (CRM): BSS includes CRM systems that manage customer interactions. This involves handling customer inquiries, resolving issues, and managing customer data. CRM systems are crucial for maintaining customer satisfaction and loyalty.
  • Revenue Management: BSS systems support revenue management by implementing various up-sale mechanisms. For example, when a customer uses all the data included in their internet data plan, BSS can instruct OSS to automatically reduce the data rate for that customer. Simultaneously, it can generate a commercial offer for the customer to purchase additional data at full speed. This helps telecom operators increase their revenue by selling more services to customers.

OSS and BSS - Key Differences

While OSS focuses on network operations, BSS handles business processes. Here are the primary differences:

AspectOSSBSS
FocusNetwork operationsBusiness processes
FunctionsNetwork planning, service fulfillment, service assuranceBilling, customer management, revenue management
GoalEnsure network efficiency and quality of serviceEnsure business efficiency and customer satisfaction

Difference 1: Focus

  • OSS is primarily concerned with the technical aspects of network operations, while BSS focuses on commercial and customer-facing activities. OSS ensures that the network runs smoothly, while BSS ensures that the business side of the telecom operates efficiently.

Difference 2: Functions

  • OSS includes functions like network planning, service fulfillment, and service assurance. These functions are essential for maintaining network performance and delivering services to customers. BSS, on the other hand, includes billing, charging, customer management, and revenue management. These functions are crucial for managing customer relationships and generating revenue.

Difference 3: Goal

  • The goal of OSS is to ensure network efficiency and quality of service. This involves optimizing network performance, resolving issues promptly, and ensuring that services are delivered seamlessly. The goal of BSS is to ensure business efficiency and customer satisfaction. This involves accurate billing, effective customer management, and implementing up-sale mechanisms to increase revenue.
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OSS and BSS Working Together to Run a Network and Business Effectively

Running a telecom business today is vastly different from twenty or thirty years ago. The complexity of telecom networks, platforms, and services has surpassed human comprehension. As a result, telecom companies must rely heavily on modern OSS (Operations Support Systems) and BSS (Business Support Systems) that incorporate advanced analytics and artificial intelligence. These technologies are essential for making optimal decisions, staying competitive, and ensuring customer satisfaction.

Additionally, OSS and BSS must be integrated to provide comprehensive support for both network and business operations. This integration enhances overall efficiency and service delivery. For example, OSS ensures that network services are delivered efficiently, while BSS ensures that these services are billed accurately, and customers are managed effectively. The collaboration between OSS and BSS is essential for maintaining a stable revenue stream and keeping customers satisfied.

  • Synergies Between OSS and BSS: The integration of OSS and BSS creates synergies that enhance the overall performance of telecom operations. For instance, OSS can provide real-time data on network performance, which BSS can use to adjust billing and customer management processes. This ensures that customers are billed accurately based on their usage and that any issues are resolved promptly.
  • Enhanced Efficiency: By working together, OSS and BSS can streamline processes and reduce operational costs. For example, automated service fulfillment and assurance processes can reduce the need for manual intervention, saving time and resources. Similarly, automated billing and revenue management processes can reduce errors and improve accuracy.
  • Improved Customer Experience: The integration of OSS and BSS also improves the customer experience. For example, OSS can ensure that network services are delivered seamlessly, while BSS can ensure that customers are billed accurately and receive prompt support. This enhances customer satisfaction and loyalty.

The size and complexity of today’s multi-vendor telecommunication networks are enormous. Huge volumes of data need to be processed and analyzed in near real-time to ensure a stable revenue stream for telecoms and to keep customers satisfied. Currently, there are more than 25 billion connected devices worldwide, and that number is expected to rise to an estimated 50 billion by 2030. Taking all of this into consideration, it is clear that OSS and BSS systems are the lifeblood of every telecom, seamlessly integrating technology and customer experience.

Choosing the Right OSS/BSS Solutions

Selecting the appropriate OSS and BSS solutions is crucial for a telecom business. Factors to consider include scalability, integration capabilities, and support for future technologies. Modern OSS and BSS systems should implement advanced analytics and artificial intelligence to make optimal decisions and keep the business competitive.

  • Scalability: Telecom operators need OSS and BSS solutions that can scale with their business. This includes the ability to handle increasing volumes of data and support new services as the business grows.
  • Integration Capabilities: OSS and BSS solutions should be able to integrate seamlessly with existing systems and processes. This includes the ability to exchange data in real time and support automated workflows.
  • Support for Future Technologies: Telecom operators need OSS and BSS solutions that can support leading-edge technologies like 5G, IoT, SDN, NFV, Edge computing, etc. This includes the ability to adapt to new network architectures and support new services.
  • Advanced Analytics and AI: Modern OSS and BSS systems should implement advanced analytics and artificial intelligence to help telecom operators make optimal decisions. This includes the ability to analyze large volumes of data in real time and provide insights that can improve network performance and business processes.
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Future Trends in OSS/BSS

Emerging technologies and trends are likely to influence the evolution of OSS and BSS. These include functionalities like federated learning and generative AI, as well as support for new network technologies like 5G and beyond, IoT, hybrid cloud environments, etc. These trends will enhance the capabilities of OSS and BSS, making them more efficient and effective.

  • Federated learning: Federated learning can significantly enhance OSS (Operations Support Systems) and BSS (Business Support Systems) by improving data privacy and security, as it allows telecom companies to train machine learning models on decentralized data without transferring it to a central server. This ensures that sensitive customer data remains on local devices, enhancing privacy and security. Additionally, federated learning can create more accurate and robust models by leveraging data from multiple sources without centralizing it, which is particularly useful for predictive maintenance, fault detection, and customer behavior analysis. It also reduces the need for extensive data storage and transfer, lowering operational costs and minimizing the computational load on central servers, making the system more efficient. As the number of connected devices grows, federated learning can scale more effectively than traditional centralized approaches, handling the increasing data volume and complexity without compromising performance. Furthermore, it enables telecom companies to offer more personalized services by analyzing data locally on user devices, leading to better customer experiences and higher satisfaction. By integrating federated learning, OSS and BSS systems can become more secure, efficient, and capable of delivering personalized services, ultimately enhancing the overall telecom infrastructure.
  • Generative AI: Generative AI can bring several concrete improvements to OSS (Operations Support Systems) and BSS (Business Support Systems) in the telecom industry. For instance, by generating realistic network data simulations, generative AI assists in network planning, capacity optimization, and performance enhancement, helping telecom operators prepare for various scenarios and ensure robust network performance. Additionally, it can create detailed customer profiles and simulate realistic usage patterns, which can be used to optimize network services, personalize marketing strategies, and improve customer satisfaction. Generative AI also aids in creating documentation for network designs, architecture, and knowledge-based entries, streamlining the documentation process, and ensuring consistency across various operational areas. Furthermore, it can generate synthetic data to explore multiple hypotheses, configurations, or scenarios, valuable for optimizing network performance and planning for future expansions. Enhancing customer service, generative AI provides personalized responses and solutions based on individual customer data, leading to improved customer experiences and higher satisfaction. By integrating these capabilities, generative AI makes OSS and BSS systems more efficient, scalable, and customer-centric, enhancing the overall telecom infrastructure.
  • Support for New Network Technologies: The future of OSS vs BSS is poised for significant transformation as new technologies like 5G, IoT, and hybrid cloud environments emerge. These advancements will necessitate more agile, scalable, and intelligent systems capable of managing the increased complexity and data volumes. With 5G, OSS and BSS will need to support ultra-low latency and real-time data processing to enable innovative services such as smart cities, autonomous vehicles, and advanced IoT applications. Hybrid cloud environments will offer the flexibility and scalability required to handle diverse workloads and ensure seamless integration across different platforms. 

UMBOSS and OSS/BSS

UMBOSS can enhance both OSS and BSS capabilities, providing comprehensive support for telecom operations. By integrating OSS and BSS, UMBOSS ensures that telecom operators can manage their networks and business processes efficiently, meeting the demands of their customers and staying competitive in the market. UMBOSS offers scalability, integration capabilities, and support for future technologies, making it an ideal choice for modern telecom operators.

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