OSS and BSS in Telecom: Key Differences and Tips for Choosing the Best Solution

BY Natalia Palamarchuk Aug 21, 2023 19 min read

Contents

5G is set to transform the telecom industry, enhancing customer service quality and opening new revenue streams for communication service providers (CSPs). However, adopting such modern technologies as 5G requires significant infrastructure upgrades within telecom companies.

Current operations and business support systems can’t handle the massive data loads, complex connectivity needs, and real-time processing demands that come with 5G. That’s why CSPs must modernize their operation support systems (OSS) and business support systems (BSS) alongside their network transformations. If they don’t, all that investment in 5G and other expensive tech would be for nothing. Customers wouldn’t get the quality service they expect while CSPs fail to capitalize on emerging opportunities.

To prevent this, your telecom business should have a solid OSS/BSS transformation strategy in place, and we can help with it. At Flyaps, we specialize in integrating advanced AI-driven analytics and solutions into various telecom processes and can help you upgrade your OSS and BSS. But first, let’s take a closer look at OSS and BSS in telecom, how these systems differ and what OSS/BSS solutions are available. And let’s start with the definitions.

What is OSS and BSS in telecom? Overview and functions

OSS and BSS form a dynamic duo that helps you deliver, manage, and monetize your services. To be more specific, OSS covers hardware and software used to manage network infrastructure and monitor performance. BSS, in turn, includes software tools that handle customer-facing operations, like billing, subscriptions, and more.

key features of OSS and BSS in telecom — Functions of OSS vs BSS

So what is OSS and BSS in telecom and what specific features do they offer? Let’s discuss each one in more detail.

What is OSS in telecom?

An operations support system is a set of software applications and tools used to manage and support the network’s operations. OSS plays a crucial role in network planning. It helps design and optimize the network infrastructure to ensure that the network can support new services and technologies as they emerge.

Also, operational support systems cover network configuration, equipment control, and performance monitoring. The system maintains service assurance and verifies that services are delivered with the required quality standards. For example, suppose a telecom provider offers a streaming service. In that case, OSS is responsible for monitoring network performance metrics, such as latency and bandwidth usage, so that customers experience minimal buffering and high-quality video playback. If any performance issues arise, the OSS can quickly identify and resolve them to maintain the quality of the customer service.

What is BSS in telecom?

A business support system, in turn, covers software applications that manage customer-facing activities and business operations. It helps companies deliver services effectively while maintaining strong customer relationships. Traditionally, BSS offers tools for managing customer interactions, supporting sales, billing, reporting, and more.

Let’s consider features related to financial management. In this scenario, BSS can handle charging, invoicing payment processing, fraud detection, and revenue reporting. For instance, using BSS a telecom company can automate the invoicing process, reducing the chances of errors and ensuring timely payments.

Another example is managing customer loyalty programs. BSS can track customer purchases and engagement, automatically applying rewards or discounts based on their activity. By analyzing this data, BSS helps companies enhance customer retention strategies and tailor promotional offers.

Both systems are designed to support the core operations of telecom businesses. However, BSS and OSS in telecom focus on entirely different aspects of these operations. Let’s briefly outline the core differences between these two.

OSS and BSS in telecom: What’s the difference?

To illustrate the difference, we will take service fulfillment as an example. This feature is primarily associated with BSS as it focuses on delivering timely customer services. However, OSS is responsible for the technical aspects to ensure these services are delivered as expected by the customer. This way, the key distinction is that OSS manages the technical side of operations, while BSS is centered around customer interactions.

Here is how BSS and OSS differ in terms of focus, functionality, and goals.

OSS and BSS in telecom: what's the difference? — What's the difference between OSS and BSS?

Why OSS and BSS is a winning combo

If we're talking about telecommunications services, CSPs should consider using OSS and BSS in tandem, as together, they allow for addressing multiple challenges, especially when it comes to network failures. For example, if a customer reports slow internet speeds, BSS can quickly check the customer’s service tier and billing status to confirm they are receiving the correct level of service. Meanwhile, OSS can monitor the network in real-time to identify any congestion points or outages affecting that area. When combined, both systems create a unified solution that enhances overall performance and customer satisfaction.

Here are some other reasons why you need both, OSS and BSS systems in telecom.

benefits you get with OSS and BSS in telecom — Benefits you get with OSS and BSS in telecom

Improved user experience

Analyzing data from purchase history and usage patterns, BSS gives insights into what customers prefer and how they behave. CSPs can use this information to offer personalized services, like recommending a higher bandwidth plan for those who love streaming media. OSS, in turn, takes care of network configurations and keeps an eye on performance in real-time, making sure everything runs smoothly and with no connection drops.

Efficient problem resolution

Using OSS and BSS together helps solve issues faster. Here is how it works. When OSS detects a problem, it alerts BSS, which then updates customers and logs the issue. With such teamwork, technical problems get fixed quickly, and customers stay informed and happy. In short, OSS handles the tech stuff, and BSS takes care of customer concerns. It leads to quicker resolutions and enhanced customer satisfaction.

Scalability and flexibility

Probably one of the most important benefits of OSS/BSS is that both the technical and business sides can scale together. OSS ensures that the network can grow and adapt to new technologies like 5G and IoT while BSS supports the introduction of new products and services to the market. Together, operation and business support systems create a flexible framework that helps mobile network operators easily expand their infrastructure as demand grows.

Optimized resource management

Here again, OSS and BSS create a powerful team capable of streamlining resource allocation. OSS keeps track of network resources, monitoring bandwidth usage, equipment status, and network performance. At the same time, BSS handles financial management, overseeing billing, invoicing, and revenue tracking. For example, if OSS detects that certain network resources are underutilized, BSS can use this information to adjust service plans or promotions and optimize costs.

Data-driven decision making

When powered by AI, both OSS and BSS can provide valuable insights. For instance, OSS can use predictive analytics to spot potential network issues before they even happen or analyze customer behavior to create personalized marketing strategies. Imagine getting a special offer just because the system knows you love streaming movies or gaming – that’s the kind of tailored experience AI can help provide. With AI, OSS and BSS become smarter so do the CSPs.

The most popular OSS and BSS in telecom

From making service delivery easier to optimizing resource management, the right tools can help CSPs tackle the challenges of digital transformation. Here are some of the most popular OSS and BSS solutions out there today.

Ericsson provides comprehensive OSS/BSS Services and Solutions to help telecoms outperform their competitors and achieve better business results.

Ericsson’s OSS/BSS Services offer various transformation pathways, including orchestration, monetization, and cloud transformation. These pathways help CSPs provide unique services, monetize 5G effectively, and improve their business models. As they say on the official website “Ericsson can Advise, Build, Operate, and Ensure before, during, and after every stage of your transformation journey”.

Ericsson’s OSS/BSS Solutions include offerings such as the Digital Monetization Platform and Dynamic Network Slicing. These solutions help communication service providers optimize their operations and capitalize on new business opportunities.

Nokia

Nokia includes a wide range of OSS/BSS solutions designed to enhance operational efficiency and improve customer experience. Their offerings cover AI and analytics, customer care, monetization, and operations, and focus on automated service delivery and network management.

Nokia emphasizes scalability, flexibility, and integration with existing systems, supporting the transition to new technologies like 5G and IoT. Their solutions aim to optimize resource utilization and accelerate time-to-market for new services.

While there are plenty of other OSS/BSS solutions available, you should carefully research potential providers before making the final choice. Let’s take a look at some major factors you should keep in mind

Key factors to keep in mind when choosing OSS/BSS solutions

To help you pick the right OSS/BSS tool for transforming your operations, here are some key factors to consider.

key factors for choosing OSS/BSS — Key factors for choosing OSS/BSS

Scalability

One of the most important aspects to consider for telecoms is scalability. You need a system that can easily adapt, especially when you’re looking to expand your network operations for 5G and IoT. A scalable OSS/BSS solution will not only handle increased data traffic and user demand but also integrate new functionalities without major overhauls. This way you can quickly respond to market changes and customer needs, and be one step ahead of the competitors.

Integration capabilities

Look for solutions that seamlessly integrate with your existing infrastructure, including other software applications and hardware components. It means that your new OSS/BSS solution should support APIs for easy connectivity. For instance, if your telecom company is looking to implement a new billing system, it should integrate with your CRM software. This integration reduces implementation headaches, leads to a more cohesive operation, and improves the overall customer experience.

Future tech readiness

Although this consideration might seem obvious as today almost every piece of software is AI-driven, you should make sure OSS/BSS tools you choose are powered by AI capabilities. This way you can automate routine operations, enhance data analysis, and deliver personalized customer experiences.

The same goes for 5G and IoT. Even if your infrastructure isn’t ready for 5G yet and you don’t plan to adopt it right away, it’s smart to pick an OSS/BSS provider that supports it when you do decide to upgrade.

OSS and BSS meaning in telecom in the 5G era

Choosing the right BSS OSS in telecom is essential, especially with the rise of 5G. The technology brings new opportunities to telecoms but they can’t be fully realized with legacy OSS and BSS systems. That’s why modern OSS/BSS solutions are necessary to handle the increased complexity, support new business models, and ensure seamless integration of 5G capabilities.

OSS/BSS is also a way to monetize 5G services. For example, OSS/BSS solutions enable telecom operators to implement dynamic pricing strategies based on usage, demand, and customer segments. With the advanced capabilities of 5G and the right OSS/BSS system, CSPs can attract more customers and unlock new revenue streams.

When you are ready to start an OSS/BSS transformation journey, we’re here to assist you.

How Flyaps can help your telecom business embrace OSS/BSS

At Flyaps, we have been working in the telecommunications industry for more than 10 years. During this time, we successfully created products that are now used by over 100 telecom companies, including famous industry enterprises such as Orange Group. We understand the challenges and needs telecom companies have. So if you need a reliable partner to modernize your OSS and BSS systems, Flyaps can help.

Reach out today, and let’s discuss how we can work together.

Feeling like your outdated telecom system is holding you back from delivering fast and reliable 5G communication solutions? Do maintenance requirements weigh you down, hindering your progress? Many telcos find themselves in this all-too-common scenario, dealing with the repercussions of outdated Business Support Systems (BSS).

In fact, continuing to rely on a legacy BSS carries significant risks. Outdated systems lack both the efficiency and capabilities of their modern counterparts, leading to errors, poor performance, and delays. Moreover, security vulnerabilities pose a constant threat for legacy solutions, exposing your business to potential cyberattacks and data breaches. As an outcome, you can’t scale your business easily, and your customers, who were expecting a seamless and pleasant experience, are left frustrated by the limitations of your legacy system.

It's time to break free from these constraints and embark on a transformative journey. But instead of starting from scratch, you can save precious time and resources by upgrading your existing BSS system in telecom. And we can tell you how.

At Flyaps, we have more than ten years of experience in the telecom industry. We've witnessed the telecom landscape evolving over the past years with new challenges emerging along with innovative technologies to address them. We used our expertise to help companies like Yaana and Neustring Analytics to rebuild and revamp their business systems, empowering them to provide exceptional services to their clients.

In this article, we'll help you figure out how you can update your BSS architecture. We'll walk you through the process, giving you useful tips and advice. And for better understanding, we'll share a real-life example from our own experience. Get ready to learn how to make the most of your BSS system in telecom and succeed in the fast-changing digital world.

Three main reasons for updating a legacy BSS

Telecom companies have earned a reputation for being slow and inflexible when it comes to adopting new trends. But as digital transformation and 5G rollouts enter the scene, telcos are starting to look for ways to expand the number of services they offer to both B2B and B2C consumers. But in most cases, their legacy systems stand in-between, slowing down the progress. Decades-old systems prevent telcos from fully embracing the potential of 5G and offering innovative services to meet the growing demands of their customers.

Here are three main reasons why legacy BSS systems in telecom come as a major pain point:

Outdated design

Imagine a telecom company that has been using a legacy BSS system for decades. Their system was designed in a different era, primarily catering to analog and physical operations. As the digital age advances, the company surely finds it challenging to keep up against competitors, who have adopted modern BSS solutions.

Why, you may ask? The legacy BSS system was not built to handle the complexities of digital services such as high-speed internet, streaming platforms, and smart devices, as there were none back then. Additionally, the outdated BSS system design limits the company's ability to offer real-time capabilities like up-to-the-second billing or usage monitoring. In today's fast-paced digital world, customers expect instant access to information, quick service activations, and immediate responses to their inquiries. But legacy solutions fail to meet these expectations, making it difficult for the telco to adjust to the dynamic telecom landscape.

Limited functionality

Let's assume that your telecom company offers both contract and prepaid services to your customers and you still use a legacy BSS system with limited functionality. Here are some challenges you might face in this scenario.

For starters, legacy BSS in telecom usually uses different billing systems. Therefore the system treats contract and prepaid customers separately. This results in a lack of integration between the two, making it difficult to have a comprehensive overview of customer data. Consequently, you struggle to provide a unified experience across different customer segments.

What’s more, the billing process in your outdated BSS system is conducted in batches, meaning that customers have to wait for specific billing cycles to receive information about their charges. The lack of real-time billing updates prevents your customers from staying on top of their spending and traffic usage.

The limited functionality of the BSS system also affects customer care and order processing. As most operations have to be performed manually, the workflow becomes very slow, making it challenging to provide timely and personalized services. Customer inquiries and requests take longer to address, resulting in poor customer experience and potential customer churn.

Incompatibility with modern services and platforms

Here’s an example of a telecom company that has been providing traditional landline and mobile services for years. As the telecom industry evolves, the company decided to expand its range of services and include high-speed internet, services for smart home solutions, and add streaming services.

But the company’s telecom BSS architecture, which was designed for handling basic phone services, struggles to cope with this digital transformation. Integrating new services and platforms with the legacy system becomes a complex and time-consuming process. The system became a bottleneck, preventing the company from fully embracing the digital revolution and providing innovative services.

Now that we have a clear understanding of the drawbacks of outdated BSS systems, let's dive into the goals telecom companies set for themselves once they realize the benefits of transforming their existing BSS.

An upgraded BSS system: What goals does it help to achieve?

BSS transformation in the telecom industry not only addresses the limitations of legacy systems but also helps achieve several crucial goals:

Operational efficiency. With an upgraded BSS system, telecom companies can experience faster time to market for their services, enabling them to keep up with changing customer demands. This streamlined process reduces operational and capital expenditures, allowing companies to allocate resources more effectively.

Reliability. Telecom companies heavily depend on the uninterrupted delivery of their existing services. An upgraded BSS system ensures the seamless functioning of these services, minimizing disruptions and maintaining a high level of customer satisfaction. Additionally, with an improved BSS system, telecom companies can introduce new services much easier. As modernized systems enable the implementation of innovative revenue models, telecom companies can explore new business opportunities and drive revenue growth.

Enhanced customer experience. Lastly, modernized BSS systems allow for more personalized and tailored services, focusing more on individual customer preferences and needs. This level of customization fosters stronger customer relationships and loyalty. With real-time capabilities, the upgraded system enables faster responses to customer inquiries and requests, providing a higher standard of customer service.

So, now is the time to delve into proven approaches that can help you modernize an outdated BSS system.

How to transform your telecom BSS architecture?

When you’re looking to modernize your legacy BSS system, here are proven ways to do it:

Building cloud-native microservices

Microservices allow telcos to break down their applications into smaller, independent parts. Each microservice focuses on a specific task, like billing or customer management, and runs in its own separate container.

Improving digital experience

Customers and employees have high expectations when interacting with digital solutions. That is why good UX design in telecom is essential, as it directly impacts the user experience and overall effectiveness of the system.

Here are some benefits you can get by improving the UX of your BSS:

Streamlined workflows. With a user-friendly BSS system in telecom, your employees won’t get overwhelmed when processing customer orders – the system will guide them step-by-step, making the process easy to follow. The system with user-focused design allows them to simplify complex tasks, automatically fill in information, and highlight important fields. As a result, the workflow becomes streamlined, which saves time and reduces the chances of errors. Employees can quickly complete tasks and move on to the next without getting burned out.
Increased adoption and engagement. Picture a telecom company that improved their BSS system following modern design standards. As employees start using the upgraded system, they find it more visually pleasing and easier to navigate. The system uses familiar icons, intuitive menus, and clear labels, increasing the chances that employees will adopt the system more eagerly. The increased adoption and engagement lead to higher productivity and improved business outcomes.
Error minimization. Let’s say you have upgraded your BSS system design with a focus on user experience. The new system now provides clear instructions and guidance throughout different processes. It includes built-in checks and validations to prevent users from making common errors, for example, entering incorrect data. When users do encounter an error, the system provides informative feedback, explaining what went wrong and how to fix it. This proactive approach minimizes errors, helps users avoid data inconsistencies, and ensures the accuracy and integrity of information within the system.

Opening services to external ecosystem partners through APIs

An application programming interface (APIs) acts as a bridge that lets different software systems communicate and interact with each other. Through APIs, telcos allow external partners, such as software developers, or third-party platforms, to connect and utilize their services in a controlled and secure manner.

For instance, by partnering with enterprises, telcos can support advanced mobility. Imagine a telco company partnering with a popular ride-sharing app. By sharing their network resources through APIs, they can enable the app to provide real-time information on driver locations, estimated arrival times, and fares. This collaboration enhances the app's functionality and improves the overall experience for users. The telco benefits by reaching a wider audience and establishing valuable partnerships with enterprises from various industries.

Additionally, opening services through APIs may result in optimizing efficiency of new service development. For example, if a telco company wants to develop a new service, like a location-based mobile advertising platform, instead of building everything from the ground up, they can repurpose existing resources through APIs. For instance, they can use an API to access location data from their network and build the advertising platform on top of it. This saves time and money, allowing businesses to deliver the service more quickly and cost-effectively.

Story of success: How we turned an old-fashioned desktop app into an advanced user-centered web solution

NeuString Analytics is a well-known provider of BI predictive analytics solutions for mobile telecommunications. It is a part of Yaana Technologies, a global provider of intelligent compliance and national security solutions. NeuString Analytics was relying on a legacy desktop system for their operations, but it had become apparent that the system's limitations were hindering the company's growth.

The legacy desktop solution had its fair share of problems. It lacked user-friendly dashboards and the ability to compare budgets or work in parallel, which made it difficult for NeuString Analytics to attract global clients like the Orange Group. Realizing the urgent need for a transformation, NeuString Analytics turned to the Flyaps experts for assistance.

The cloud-based solution for NeuString Analytics

Recognizing the challenges faced by NeuString Analytics, we proposed to seamlessly replace the outdated desktop system with a new and improved solution. We offered to gradually introduce a new tool to users while keeping the old system operational and improved until the development process was completed.

With a clear vision in mind, our team embarked on developing a new web cloud-based application for NeuString Analytics. Our primary goal was to update the existing features and add new functionalities that would better serve the needs of the company's clients. Despite the tight schedule, we promised to deliver the first app version within four months, and we successfully coped with the task.

The transition from the legacy system to the cloud was a pivotal step in NeuString’s transformation. We moved the essential functionalities to the cloud, ensuring that users could enjoy familiar services while benefiting from a more advanced platform. Moreover, we introduced new discounting and forecasting models, empowering NeuString Analytics clients with comprehensive budgeting features. Users can now create multiple budgets, compare them, and gain a broader perspective for effective planning.

To provide insightful analytics and reporting, we integrated NeuString’s legacy system into the cloud-based solution. We exported the database for reporting purposes and presented the data on dynamic dashboards. These dashboards were capable of displaying volume, charges, and insights categorized by country, period, service types, and other traffic parameters. There was even an interactive world map that allowed users to analyze traffic volumes and charges across different countries.

Understanding the importance of a user-friendly experience, Flyaps invested time and effort into designing an intuitive user-focused interface. We followed modern UI guidelines to ensure consistency throughout the system, making it easy for users to navigate and utilize the application's functionalities effectively.

The transformation efforts paid off tremendously for NeuString Analytics. Their clients now have access to a highly performative and one-of-a-kind system, thanks to Flyaps's expertise. Even telecom giants like Orange Group, Telenor Group, and Hutchison 3G UK Limited recognized the indispensability of the solution for their forecasting, negotiation, budgeting, and data analysis needs.

How Flyaps can help you with BSS transformation

What Flyaps can do for your BSS transformation

We have been working in the telecommunications industry for more than 10 years. During this time, we successfully created products that are now used by over 100 telecom companies, including famous industry enterprises such as Orange Group. Our vast experience has given us a deep understanding of the challenges and needs telecom companies have.

Thanks to our expertise in the telecom industry, we know exactly what telecom companies need when it comes to BSS modernization. Here’s what we offer.

Application modernization. We can help you upgrade your existing BSS system so that it meets current industry standards. This includes getting rid of any performance or scalability issues, integrating with other required systems, and enhancing the security of your data.

Cloud migration. If you have applications that are currently hosted on your own servers, we can assist you in migrating them to a hybrid cloud environment to ensure better flexibility and cost savings.

Developing cloud-native applications. We can create a BSS application that is designed specifically for cloud environments. Such applications would utilize modern cloud services and scalable microservice-based architecture, ensuring they can adapt to your needs and handle high demand.

Business process automation. We can set up a comprehensive automation system for your business processes across different departments. This includes tasks like monitoring network hardware, predicting maintenance requirements, generating reports, streamlining billing processes, managing sales and marketing across various channels, and enhancing customer support services.

Ready to modernize your BSS system architecture for improved efficiency, seamless integration, and enhanced data security? Drop us a line and we’ll get back to you shortly to discuss the details.