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Spending on the computing systems used to
create new telecommunications services will outpace the growth in revenue
expected from these services, says a new market research report from Insight
Research. The global market for Operations Support Systems (OSS), the IT
infrastructure that gives telcos the ability to create, deploy, manage, and
maintain network-based systems, will grow nearly 13 percent faster than
worldwide telecom revenues over the next five years.
According to Insight's report, Operations Support
Systems in the Intelligent Network 1997-2002, telecom service providers
must cope with global competition by introducing new services faster while
also increasing operating margins and revenue. OSSes make it easy to build
new services and improve back-office efficiency, and increasingly OSSes are
utilized to respond to, and in some cases, manage the customer. As telecom
service becomes more of a commodity, carriers will have to differentiate
themselves by offering superior customer support and rapid roll-out of new
services at a reduced cost, therefore intensifying the importance of OSSes.
"There's no end in sight to OSS spending," says Robert Rosenberg, president
of Insight. "There is enormous potential for these systems--just think
about carriers allowing customers to order or upgrade service, view bills,
and report and track problems online, in real time. OSSes will make it a
reality, and the investment will pay off," Rosenberg concludes.
According to Insight, global spending on Operations Support Systems
hardware, software, professional services, and maintenance will grow from
$25 billion in 1998 to nearly $38 billion in 2002. Customer Care and
Billing (CC&B) system expenditures will grow at 14.9 percent over the
forecast period, and by 2002, INSIGHT estimates $14.5 billion will be spent
on the CC&B segment, comprising 38 percent of the total OSS market.
Further insights into OSS market trends, including five-year revenue
forecasts segmented by OSS component, type, and region, are published in Operations Support Systems in the Intelligent Network
1997-2002.
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Operations Support Systems 2002-2007
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Telecom
Market
Research,
