OSS/BSS market overview and vendor landscape, 2Q13

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OSS/BSS market overview and vendor
landscape, 2Q13-1Q14
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Market overview
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Publicly announced OSS/BSS contracts, 2Q13–1Q14
Source: Ovum
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The global OSS/BSS market, 2Q13–1Q14
 Overall, the number of publicly announced OSS contracts has remained fairly
static over the four quarters to the end of 1Q14, perhaps demonstrating that
the industry is in a healthy state of growth as support for newly rolled out
networks takes centre stage.
 BSS contract numbers appear to be in decline, despite growing interest in
areas such as integrated policy control and online charging systems (OCS),
customer experience management, and realtime customer contact. Behind the
figures, however, is a sector in a state of consolidation, both in terms of M&A
and technological activity. The net effect is to reduce the number of contract
wins reported per vendor, giving the overall impression of decline.
 The main market drivers for both OSS and BSS products and services is the
move to all-IP networks, particularly in the mobile sector. Networks have never
been so complex as they are rapidly becoming, and OSS/BSS vendors are
providing the means to control them. As such, the combined market is likely to
remain buoyant for the foreseeable future.
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Vendor landscape
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Top 10 OSS vendors 2Q13–1Q14
 This chart reflects the demand for network
management products and services, with
three of the main infrastructure vendors
appearing at the top of the chart. The
majority of network management contracts
are included in infrastructure deals.
 Nokia’s recent divestment of its BSS
assets seems to be paying off as the
company concentrates on mobile
broadband infrastructure and OSS.
 Alcatel-Lucent is also benefiting from LTE
rollouts, but has picked up some
significant fixed-line contracts as well.
 Ericsson continues to dominate the
outsourced network management
segment, with the vast majority of its
contract wins over the period in this area.
 NetCracker is the best of the rest, picking
up a number of OSS transformation
projects, with the emphasis on network
planning and optimization.
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Source: Ovum
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Top 10 BSS vendors 2Q13–1Q14
 Demand for revenue management products,
particularly integrated policy control and
online charging platforms, has put Redknee
at the top of the list for the period covered.
This shows not only that policy and charging
is a growth area, but also that the telco IT
market is no longer the sole preserve of the
large infrastructure vendors.
 Comverse benefitted greatly from a series of
regional contracts from Eastern European
operator Vimpelcom. The company has
implemented realtime charging and billing,
and provided enhanced CRM across the
operator’s Russian and Commonwealth of
Independent States (CIS) properties.
 Equinox too has found rising demand for its
revenue management products, particularly
fraud management and mediation. Growing
demand for the latter suggests that
incompatibility between billing and charging
systems is still an issue, despite efforts to
address it through standardization and
various industry initiatives.
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Source: Ovum
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OSS/BSS landscape, 2Q13–1Q14
 The top 10 vendors combined in both OSS and BSS segments own less than half of
their respective markets. This suggests that despite a great deal of vendor consolidation
in the last couple of years, there is still plenty of room for smaller, specialist vendors with
point solutions or who offer services.
 Developments in OSS have been relatively low key until recently, with new products
centered on areas such as improved data collection and realtime dashboards
customized for various groups within the operator’s organization. However, the
gathering pace of the transition to all-IP networks has made it increasingly clear that
OSS will need to keep up with BSS as it increases in complexity. The accent is firmly
shifting toward order-to-cash systems, service assurance, and support for future
developments in near-field communication (NFC) and software-defined networking
(SDN), and vendors active in these areas are becoming prominent in the market.
 The BSS market continues to be driven by concerns over revenue management and
realtime charging. While we expect this trend to continue, demand for business
analytics and business intelligence systems will only increase. Vendors that can offer
integrated packages in these areas are likely to profit, as while most operators will
eschew a "big bang" approach to replacing existing BSS, they will be very keen to
replace the elements they deem most important in the short to medium term.
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BSS/OSS Contracts Database
The most
comprehensive
record of
publicly
announced
BSS/OSS
contracts
The underlying data used in this analysis is taken from Ovum’s OSS/BSS
Contracts Database, the most comprehensive record of publicly announced
awarded contracts available. The database is updated quarterly and tracks
contracts across five sub-types, and 47 separate product areas.
For more information on how subscribing to this database could help your
business contacts us: [email protected]
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About Ovum
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