Understanding the Telecom Management Ecosystem
The value of the current OSS/BSS market is close to $19 bn and is expected to increase by a CAGR of 3-4% to touch $23 bn by 2025. Close to 70 percent of the revenue generated from 5G use cases is directly dependent on OSS/BSS transformation. OSS/BSS functions also account for over 70% of the total Telecom headcount at service providers such as TCS, Infosys, and Tech Mahindra. The revenue distribution of this massive $19 bn market is led by Europe and Asia, generating close to 60% of the total revenue while the Americas generate ~25%.
The OSS/BSS market is fueled by activities that fall under revenue management and service assurance. Revenue management accounts for nearly 50% of the revenue share under the BSS market while service assurance holds over 65% of the revenue under the OSS market. Other integral functions include customer management, product management, network design and service fulfilment.
The top five vendors in this space – Amdocs, Huawei, Ericsson, Netcracker, and Oracle collectively hold over 60% of the market and are concentrating their efforts on expansion in emerging markets. Amdocs holds the largest share in revenue with over $3.86 bn generated in 2017. Amdocs, Huawei, and Ericsson offer services such as billing management, revenue management, and full suite managed services which can be integrated with cloud thereby decreasing operational costs.
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