2010 Predictions by Redknee CTO, Bohdan Zabawskyj
Network operators will necessarily have to leverage their considerable existing investment in core and radio infrastructure by directly providing or enabling value oriented services that are immediately appreciated by their subscribers. In this context, OSS/BSS platforms cannot be relegated to provide simple ‘back-office’ or billing functionality for the purpose of supporting outdated pricing schemes and business models. Progressive network operators recognize that suitably equipped and evolved OSS/BSS platforms constitute a fundamental strategic asset that will:
(1) Increase the revenue profiles across their subscriber base;
(2) Allow the operator to achieve new levels of operational efficiency; and
(3) Secure additional sources of revenue via new business models that involve a fundamental paradigm shift in the delivery of services to the end subscriber.
Subscribers will adopt services and associated pricing models that are clear and intuitive - and that reflect the relative value in a dynamic and competitive landscape. Subscribers also require real-time transparency and control with respect to their suite of mobile services. This includes control of the various features, capabilities, and even the quality or fidelity associated with a given service. Traditional distinctions between prepaid vs. postpaid will become increasingly irrelevant as subscribers will expect flexibility with regards to how they pay for any service – which may include payment mechanisms that involve degrees of sponsorship via advertizing or other real-time promotions.
Subscribers will relentlessly pursue and equip themselves with a suite of communication services that provide the greatest relative value. Network operators must be able to attract new customers and retain existing customers with differentiated services. Operators need to offer relevant pricing plans that reflect the social and economic realities of the geographic region that also meet the needs of various demographic groups in their subscriber base. To that end, network operators require OSS/BSS platforms that can rapidly and efficiently adapt to meet the pricing & service requirements associated with an increasingly dynamic and competitive environment. A platform that transcends traditional boundaries between `wireless` vs. `wireline` or `voice` vs. `data`. OSS/BSS systems that will allow network operators to succeed in the anticipated dynamic economic conditions will incorporate the following three attributes:
(1) Convergence at all levels
OSS/BSS systems will need to support convergence across pre-paid & post-paid contexts as well as across access technologies (e.g. wireless, IP, cable). This helps to create an efficient and unified view of a subscriber from the perspective of the network operator, while at the same time providing an unprecedented degree of visibility and control for subscribers with respect to the services they can access. With increased subscriber expectations for service portability between devices – and across international borders – converged rating platforms will necessarily have to accommodate and support inter-network and cross-technology capabilities in a transparent and intuitive manner.
(2) Real-time value centric rating and application of associated policies
Although flat-rate and ‘large-bucket’ price plans will not disappear, there will be an increasing momentum towards the support of contextually oriented & value-centric rating practices. At the same time, there will be a need to enforce policies that guarantee the end-to-end subscriber experience, and reinforce the perceived value from a subscriber-centric perspective. Real-time OSS/BSS solutions enable mobile network operators to optimize the lifetime value of each subscriber via the application of innovative pricing mechanisms including cross-bundle pricing, ‘hot-item’ pricing, multi-channel promotions, and loyalty/bonus points.
(3) Support of new business models and value chains
OSS/BSS platforms need to support the evolution of network operators from mere providers of ‘air-time’ or ‘data’ bundles to trusted enablers for both subscribers and value-added service providers. OSS/BSS platforms can leverage the inherent strengths of network operators so that value-added service providers can target specific demographic groups. This includes their existing subscriber relationships, accumulated subscriber knowledge, and the ability to apply service controls. OSS/BSS platforms must support a variety of value added capabilities and interfaces to enable the timely and optimized delivery of services and applications.
To summarize, the immediate future will see a continued investment in OSS/BSS infrastructure that will equip progressive operators with tools to improve revenues and operating efficiencies, while providing subscribers with increased transparency and control. To remain competitive, network providers must be able to differentiate their service offerings by delivering compelling features (e.g. rating based on delivered quality of service) and capabilities (e.g. access to groups of subscribers who share a given characteristic) quickly and efficiently. Mobile operators that are able to deliver the best convenience and value and create the most efficient delivery mechanisms will attract the best value-added service providers, and the most loyal and profitable customers, to ensure their continued success.