Next Generation Network OSS/BSS Market and Forecast

Next Generation Networks (NGN) promises a high quality end-user experience. Telecommunications service providers expect the NGN framework to provide them with tools that would ensure customer loyalty. However, the path towards achieving the ideal NGN is fraught with formidable challenges. The most critical challenge confronting operators is optimizing their OSS and BSS platforms, systems, and processes.

The OSS/BSS vendor environment is extremely competitive with close to 400 vendors, mostly specialized in niches and having a strong services arm. Vendor categories include Comprehensive Solution Providing Pure OSS/BSS Vendors, Comprehensive Solution Providing Composite Vendors, Skill-set Extension Solution Providers and Core Strength Concentrators - BSS and OSS. The vendor landscape is characterized by extensive M&A activity.

The report "NGN OSS/BSS: Markets and Forecast" provides a comprehensive analysis of drivers and issues related to technical and business aspects of OSS/BSS deployments and developments while forecasting their growth over the next five years.

This report answers important questions:

• What are the telecom network operator interests in NGN OSS/BSS?
• What are the challenges to OSS and BSS implementation?
• What are the best OSS and BSS approaches for NGN?
• What are the technologies involved in OSS and BSS?
• Who are the leading vendors for NGN OSS/BSS?
• What is the market forecast for OSS and BSS?

Additional Value in this Publication

Technical Overview of OSS and BSS in NGNs: This section begins with an introduction to OSS and BSS and their roles in the operator environment. It explains the various blocks that go into building of the OSS: Network elements, events, alarms and others. It next explains the BSS building blocks: Billing, rating, mediation, charging, customer care and others. This section is followed by the description of prevalent industry approaches like TMN - FCAPS model that are widely followed by operators. The section then analyzes the technical impact of NGN on OSS and BSS architectures.

Vendor Analysis: Profiles of 35 vendors offering OSS/BSS products and services for next generation networks. This section first explains the basis of vendor selection including vendor classification, innovative contribution, market leadership position and future growth path. Each vendor is then analyzed in the light of its product and solution portfolio, major implementations, differentiating aspects with other vendors and their future plans. The report includes recommendations to vendors including diversification, best practices, market segment, and solution approach.

Operator Case Study - British Telecom (BT): This section evaluates BT relative to its OSS and BSS initiatives with respect to its three principle lines of business, vendors involved, platform, and current approach to implementation.

Quantitative Analysis and Forecast: This section begins with a detailed explanation of the research methodology. Quantitative analysis includes measurable items such as billing systems, network management systems and their sub-classes (mediation, wholesale billing, retail billing, CRM, revenue assurance, resource management, task management, delivery management, synchronization management) along with geographical segmentation, trends and projections. Importantly, the quantitative analysis assesses the impact of various drivers and issues on the above measurable items, thus forming a logical conclusion of the quantitative discussion in the previous sections.

Note: This section represents a comprehensive forecast including Forecast Methodology by Overall OSS and BSS Software Market, Split by OSS and by BSS separately, by geography (NA, EMEA, CALA, and APAC), and by modular break-up including: Network Planning and Engineering (NPE), Fault Management (FM), Performance Management (PM), Provisioning and Service Activation (PSA), Inventory Management (IM), Billing and Customer Care (B&CC), Mediation (MD), and Revenue Assurance (RA). The section also includes OSS/BSS Vendor Rakings Based on Net Profit Margins.

Target Audience

• Network operator managers tasked with making long-term architecture and support system decisions including vendor decisions
• Product management personnel concerned with the impact of OSS and BSS systems on next generation application and services rollout such as IP Multimedia Subsystem (IMS) and technology and/or application frameworks or platforms
• Managers and Directors tasked with OSS responsibilities and anyone that is involved in OSS/BSS decision making
• Vendors, suppliers, and service providers to network operators interested in their prospects for selling into the carrier marketplace
• Network and Engineering personnel seeking specific information such as leading OSS/BSS Approaches including as OSS/J, OSA/Parlay, MDA, Information Technology Infrastructure Library (ITIL). This publication has both business/market information and technical information!

Vendors Covered in Report

AdventNet Inc

Agilent Technologies Inc

AI Metrix

Alcatel

Amdocs

Argent Networks

Ascom Deutschland GmbH

BCGI

BEA

CBOSS

Celona

Ceon Corporation

Cerillion

Comarch

Comptel

Comverse

Concord Communications Inc (Acquired by CA)

Convergys

Cramer Systems

Elsaq

Evolving Systems Inc

Fair Isaac

Formula Telecom Solutions

Granite Systems

Hewlett-Packard

IBM

Infosys

Intec

InterSystems

Intracom

IP Value

IPWORTH

LHS

Lightbridge Inc

Lucent

MetaSolv

Metratech

Micromuse

Microsoft

MindCTI Ltd

Monfox

Motorola

Mycom International

Nokia

Nortel

Openet Telecom

Orga Systems

Quallaby

Redknee

Redrock Communications

Siemens

Sigma Systems

SRIT

STROM Telecom

SubexAzure

Sun Microsystems

Syndesis

TechMahindra

Telcordia Technologies Inc

Trendium

TTI-Telecom

Vallent

Vallent Corp.

Vertel

Vitria

VPIsystems Inc

Operators Mentioned in Report

3 (Hutchison)

AAPT

Afghan Wireless

Airtel

Alltel

América Móvil

ARTelecom

AT&T

AT&T Wireless

BakCell

Batelco

Bell Canada

Bell South

BellSouth Communications

Brasil Telecom

BT

BT Wholesale

BTTB

Buoygues Telecom

Cable and Wireless

Camtel

Cbeyond Communications

Celcom

China Mobile

China Unicom

Chunghwa Telecom

Cincinnati Bell

Cingular

Cingular Wireless

Colombia Velcom (MDC)

Comcast

Cosmote

Covad Communications

Cox Communications

CSX

Cybercity

Deutsche Telekom

Digicel

Digitel Venezuela

Eircom

Entel PCS

E-Plus

Equant

Eschelon Telecom

ETB

Freenet.de

Globalstar

H3G

Hutch

Inmarsat

Intelco International Telecommunications

JTB

K'cell

Korea Telecom

KPN Carrier Services

KPN Group

KTF

MCI

Meditel

Meteor Communications

Mobifone

mobilkom

MobilTel

MovieBeam

MTS

NavLink

Nepal Telecom

Netia

Nextel

NTT

O2

Omantel

Orange

Orascom

Paetec Communications

Pipex

Progress Telecom

Qwest

Rogers

SBC

SingTel

Sonera Carrier Networks

Sprint

Sri Lanka Telecom

Sunrise

Swisscom

T Mobile

TCAT

Tele2

Telecom Italia

Telecom Italia Mobile

Telecom Personal

Telefonica Del Peru

Telefonica Empresas

Telefonica S.A

Teleglobe

Telekom Malaysia

Telekom Srpske

Telenet

Telewest Broadband

TeliaSonera

Telmex

Telsim

Telstra

TelstraClear

TELUS

The MTN Group

TIM

Time Warner Telecom

TM Cell

T-Mobile

T-Mobile (Austria)

T-Mobile UK

Turkcell

Tyco Telecommunications

Verizon

Verizon Communications

Verizon Wireless

VirginMobile

Vodafone

Wataniya Telecom

WilTel Communications

XO Communications

Table of Contents

Chapter 1: Introduction

Executive Summary

What is NGN?

History of NGN

Comparison of NGN with Public Switched Telephone Network and with Public Switched Data Network

Drivers of NGN

Telecom Operator and Vendor Interests

Improvement in Access Technologies

Reduced Vendor Dependency

Opening of Global Financial Markets

Challenges for NGN

Large Scale Capital Expenditure

Operational Challenges

Integration of Multiple Private Networks and Application into the Larger Public Networks

Quality of Service (QoS)

National Security and Competitive Policies

Chapter 2: Challenges for OSS and BSS in NGN

Functional Modules of OSS

Functional Modules of BSS

Challenges for OSS and BSS

OSS Challenges

Stakeholder Apprehensions

Framework to Integrate Customization Demands

Smooth Transition from Existing OSS Frameworks

Multi-vendor Co-ordination

BSS Challenges

NGOSS: The Convergent Approach

Key NGOSS Terminology

eTOM

SID

TNA

NGOSS Compliance Tests

The NGOSS Lifecycle

Advantages of NGOSS

Chapter 3: Approaches and Technologies

Fundamental Concepts

Middleware

Service Oriented Application Protocol (SOAP)

Web Services (WS)

Extensible Markup Language (XML)

OSS/BSS Frameworks

Telecommunication Management Network (TMN)

FCAPS

Messaging Formats

Simple Network Management Protocol (SNMP)

Common Management Information Protocol (CMIP)

Enterprise Data Organization Approaches

Enterprise Application Integration (EAI)

Enterprise Service Bus (ESB)

Leading OSS/BSS Approaches

OSS/J

OSA/Parlay

MDA

Information Technology Infrastructure Library (ITIL)

Operator Case Study - British Telecom

Chapter 4: Vendor Analysis

Vendor Landscape Observations

Vendor Classification

Comprehensive Solution Providing Pure OSS/BSS Vendors

Comprehensive Solution Providing Composite Vendors

Skill-set Extension Solution Providers

Core Strength Concentrators - BSS

Core Strength Concentrators - OSS

Vendor Summary

AdventNet Inc

Agilent Technologies Inc

AI Metrix (Acquired by SYS Technologies)

Amdocs

Argent Networks

BCGI

CBOSS

Cerillion

Comarch

Comptel Corporation

Comverse

Concord Communications Inc (Acquired by CA)

Evolving Systems Inc

Formula Telecom Solutions

Hewlett-Packard Company

Intec Telecom Systems

LHS

Lightbridge Inc

MetaSolv Software Inc (Acquired by Oracle)

Metratech

IBM

MindCTI Ltd

Monfox

Openet Telecom

Orga Systems

Redknee

Sobha Renaissance IT (SRIT)

STROM Telecom

Subex Azure Limited (SAL)

Syndesis

Telcordia Technologies Inc

Trendium

Vallent Corp

Vitria

VPIsystems Inc

Chapter 5: Quantitative Forecasts and Analysis

Forecast Methodology

Overall OSS and BSS Software Market

Overall Revenue Split Up

OSS Split-Up

BSS Split-Up

Geographical and Revenue Component-wise Distribution

Overall Geographical Distribution

Overall Revenue Component-wise Distribution

Modular Break-Up

Network Planning and Engineering (NPE)

Fault Management (FM)

Performance Management (PM)

Provisioning and Service Activation (PSA)

Inventory Management (IM)

Billing and Customer Care (B&CC)

Mediation (MD)

Revenue Assurance (RA) 0OSS/BSS Vendor Rakings Based on Net Profit Margins

Conclusions

Recommendations

Table of Tables

Table 1-1: Comparison between NGN, PSTN and PSDN

Table 3-1: OSS/J Certified APIs

Table 3-2: OSS/J API Referencing Vendors

Table 4-2: Vendor Summary

Table of Figures

Figure 2-1: OSS and BSS Positions

Figure 2-2: NGOSS Views

Figure 3-1: Logical Layers of TMN

Figure 3-2: NGOSS and OSS/J Synchronization

Figure 3-3: TMF/Prosspero Processes

Figure 3-4: OSA/Parlay Framework

Figure 3-5: MDA Levels

Figure 3-6: OSS/J API Proposed Coverage for BT

Table of Charts

Chart 5-1: Consolidated OSS/BSS Revenues (In Million USD)

Chart 5-2: Consolidated Revenue Functional Split-Up (In Million USD)

Chart 5-3: OSS Revenue Split-Up (In Million USD)

Chart 5-4: BSS Revenue Split-Up (In Million USD)

Chart 5-5: Consolidated Revenue Geographical Split-Up (In Million USD)

Chart 5-6: Consolidated Revenue Geographical Summary (%)

Chart 5-7: Consolidated Revenue Component-wise Split-Up (In Million USD)

Chart 5-8: NPE Geographical Split-Up (In Million USD)

Chart 5-9: NPE Geographical Summary (%)

Chart 5-10: NPE Component-wise Split-up (In Million USD)

Chart 5-11: FM Geographical Split-Up (In Million USD)

Chart 5-12: FM Geographical Summary (%)

Chart 5-13: FM Component-wise Split-up (In Million USD)

Chart 5-14: PM Geographical Split-Up (In Million USD)

Chart 5-15: PM Geographical Summary (%)

Chart 5-16: PM Component-wise Split-up (In Million USD)

Chart 5-17: PSA Geographical Split-Up (In Million USD)

Chart 5-18: PSA Geographical Summary (%)

Chart 5-19: PSA Component-wise Split-up (In Million USD)

Chart 5-20: IM Geographical Split-Up (In Million USD)

Chart 5-21: IM Geographical Summary (%)

Chart 5-22: IM Component-wise Split-up (In Million USD)

Chart 5-23: B&CC Geographical Split-Up (In Million USD)

Chart 5-24: B&CC Geographical Summary (%)

Chart 5-25: B&CC Component-wise Split-up (In Million USD)

Chart 5-26: MD Geographical Split-Up (In Million USD)

Chart 5-27: MD Geographical Summary (%)

Chart 5-28: MD Component-wise Split-up (In Million USD)

Chart 5-29: RA Geographical Split-Up (In Million USD)

Chart 5-30: RA Geographical Summary (%)

Chart 5-31: RA Component-wise Split-up (In Million USD)

Chart 5-32: Operator Billing Revenue Losses (In Million USD)

Chart 5-33: OSS/BSS Vendor Ranking Based On Net Profit Margins (%)