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Operations
Support Systems in the Intelligent Network
1997-2002
a market research report
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For telecom service providers, the means of surviving in
a post-monopoly environment are becoming abundantly
clear: reduce costs, offer as many revenue-enhancing
services as possible, and above all, make certain that
your customer is satisfied. Products that make these
goals easier to achieve are being welcomed with open
arms.
Major equipment vendors have already sold scaleable, TMN-compliant billing, customer care and network
management systems to carriers. With regulatory
requirements for Local Number Portability, and with the
growth of newer CLEC, ISP and cable MSO entrants, the
market for Operations Support Systems (OSSes) continues
to look profitable. Insight predicts that the worldwide
OSS market will increase from $23.6 billion in 1997 to
nearly $37.8 billion in 2002, with growth in OSS
purchases outpacing growth in total carrier revenues.
As the OSS market matures expect to see increased vendor
consolidation; new management systems geared towards
effective maintenance of broadband and Internet services;
and continuing demand for systems that help phone company
employees respond to and solve customer problems.
Operations Support Systems in the Intelligent Network
will give service providers the knowledge they need to
make wise investment decisions, and keep equipment
vendors aware of emerging opportunities and competitor
products. It includes an overview of the operations
support process, extensive qualitative analysis of recent
market trends, 29 detailed vendor profiles, and an
elaborate demand-side forecasting model.
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Report Excerpt
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Background
If one examines the telecommunications industry
throughout the world the trends of privatization,
deregulation, and free trade are repeated in market after
market. Telecommunications service providers are using
the latest technologies to deploy, enhance, or replace
Operations Support Systems (OSSes) to respond to this
highly competitive marketplace. OSSes are the information
technology (IT) infrastructure that enable the
telecommunications service providers with the ability to
create, deploy, manage, and maintain network-based
services.
The importance of OSSes is increasing relative to the
network. Competition has forced telecommunications
providers to focus on the customer, and OSSes now enable
easier and better customer contact. Traditional OSSes
managed the network; new OSSes respond to, and in some
cases, manage the customer. When the customer contacts
the service provider to arrange for a new service (also
known as inbound customer contact), service activation
and availability can be measured in hours (or even
minutes), not in days. If access to the customer site is
needed, the appointment can be made within a specified
hour on a date convenient for the customer, and not
"sometime in the morning" or "sometime in
the afternoon" on a date convenient to the service
provider. Likewise, when a service provider's customer
care center contacts the customer (outbound customer
contact), representatives can identify customers who are
likely to jump to another provider or subscribe to
additional services. Theoretically, revenue and customer
satisfaction increase together.
New technologies will also allow the flow-through of
customer requests without human intervention. Just as
customers have become accustomed to using Interactive
Voice Response (IVR) units in contacting service
providers, the Internet will become the access technology
of choice for millions of connected subscribers and most
businesses. Service orders or trouble tickets will be
automatically decomposed or resolved based on
interactions with the customer and Intelligent Network
(IN) elements. OSSes are the technical and
business-enabling products that will make this all
happen.
The Market
In our model, Insight analyzes the global OSS market by
service domain, geography, and OSS type. The services are
broken into wireline and wireless segments. A further
segmentation of the wireline segment into narrowband and
broadband services is also given. Broadband services are
defined as the delivery of a service with bandwidth at
T1/E1 rates or higher (1.544 Mbit/s). Narrowband services
are defined as any services below T1/E1 bandwidth rates.
Delivering voice over ATM, for example, is still defined
as a narrowband service. Breaking down the market in this
manner is useful because the current broadband revenue
stream is small, but explosive growth is expected. In
North America, the wireline analysis also includes a
breakdown by carrier type, such as local, long distance,
cable TV and Internet Service Provider segments.
The OSS categories used are Customer Care and Billing,
Planning and Engineering, Provisioning and Inventory
Management, Trouble and Repair, Network Management,
Business Management, and Workforce Management. While
these do not align with the levels of management defined
by the ITU's Telecommunications Management Network (TMN)
model, they do represent the functional components that
comprise OSS solutions offered by OSS vendors. For
example, new entrant service providers are probably most
interested in a start-up solution, i.e., Customer Care
and Billing plus Provisioning and Inventory Management
(Order Management), so they can sign up customers and
bill for services. TMN Business Management, Service
Management, Network Management, and Element Management
layer functionality would all be involved in implementing
this solution.
The global forecast for the years 1997 through 2002
include expenditures on hardware, operating systems and
middleware, application software, maintenance for
hardware and software, and the revenues for professional
services (e.g. systems integration or process
engineering) associated with OSSes. Worldwide sales of
$23.6 billion in 1997 will increase at an annual rate of
almost 9.9 percent to nearly $37.8 billion in year 2002.
Insight further segments the OSS market based on the
following geographic regions: North America,
Europe/Middle East, Asia/Pacific, and Latin America/the
Caribbean. In addition to tracking sales by service
domain and OSS type, professional services expenditures
for each region are also shown. Insight Research predicts
explosive growth for professional services related to OSSes.
With each forecast, Insight Research has analyzed the
major conditions and challenges existing in each market
segment. Separate analyses are given for domestic and
international wireline and wireless, the Internet service
market, and the cable TV market. Broadband services are
analyzed in the Europe/Middle East, Asia/Pacific and
Latin American markets. These analyses compare and
contrast the conditions in these markets and the
corresponding markets in North America.
The Outlook
Telecommunications service providers throughout the world
will be struggling to understand and deal with global
competition. A rapid response to the widely varying and
changing needs of telecommunications customers is one of
the keys to survival. As network hardware becomes more of
a commodity and service creation and delivery move into
the realm of software, the importance of OSSes will
increase. While worldwide telecommunications revenues are
expected to increase $729.5 billion in 1997 to over $1.1
trillion in 2002, OSS revenues will increase almost 13
percent faster over the same period.
Moreover, the international marketplace is playing
catch-up to North America. Therefore, the international
market for OSS vendors represents an important
opportunity with spending growth exceeding that of North
America in both Asia/Pacific and Latin America. Both
service providers and vendors should be able to take
advantage of the lessons learned in North America, where
competition and customer disloyalty have been a fact of
life in recent years.
The key to both the service providers' and vendors'
success will be OSS systems that:
- Are flexible in meeting each service provider's
specific processes;
- Can deploy or support new services in a timely fashion;
and
- Support the service provider's objectives to build
customer loyalty.
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Market Segmentation
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- Application
- Customer Care
and Billing
- Engineering and
Planning
- Provisioning and
Inventory Management,
- Trouble/Repair,
Network Management
- Business
Management
- Workforce
Management
- Professional Services
- Customer Segment
- Long Distance
- Local
- Cable MSO
- ISP
- Component
- Hardware
- Software
- Professional Services
- Maintenance
- Type of Service
- Narrowband
- Broadband
- Wireless
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Table of Contents
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Chapter I
EXECUTIVE SUMMARY
1.1 Background
1.2 The Market
1.3 The Outlook
Chapter II
HISTORICAL OVERVIEW
2.1 OSS Defined
2.1.1 Business Management OSS
2.1.2 Service Management OSS
2.1.3 Network Management OSS
2.1.4 Definitions Summary
2.2 Post Divestiture View
2.2.1 United States: The Breakup of the Bell System
2.2.1.1 The Importance of OSS Investment
2.2.1.2 Bellcore’s Evolving Role
2.2.2 Europe: Liberalizing the Telecom Infrastructure
2.2.3 Worldwide Wireless: Newer and Nimbler
2.3 A Rundown of the Operations Support Process
2.3.1 Business Operations Support
2.3.1.1 Service Orders
2.3.1.2 Call Collection
2.3.1.3 Rating
2.3.1.4 Billing
2.3.2 Network Operations Support
2.3.2.1 Engineering and Planning
2.3.2.2 Provisioning
2.3.2.3 Trouble/Repair
2.3.2.4 Network Management
2.4 OSS Market Structure: Demand Side View
2.5 OSS Market Structure: Supply Side View
2.5.1 Development of OSS Vendor Market
2.5.2 Intensifying Competition
2.5.3 Partnering for Survival
Chapter III
OSS TRENDS
3.1 Common OSS Trends
3.1.1 Domestic Trends
3.1.1.1 Local Services Competition and Network Unbundling
3.1.1.2 Local Number Portability and the AIN
3.1.1.3 Impact of Network Architectures and Service
Domains
3.1.1.4 Using OSSes to Differentiate Service
3.1.2 The Effect of New Software Technology
3.1.2.1 Integrating Legacy and New OSSes
3.1.2.2 Telecommunications Management Network Standards
3.1.3 The Changing Nature of Network and Service
Management
3.2 International
3.3 Wireline Common Carrier Trends
3.4 Wireless Common Carrier Trends
3.4.1 Cellular’s Demise?
3.4.2 SMRs: No Longer the Buggy Whip Segment
3.4.3 OSSes Critical to PCS Success
3.4.4 Satellite: VSATs, DBS and LEOs
3.4.4.1 Iridium
3.4.4.2 Globalstar
3.4.4.3 Teledesic
3.5 Cable TV Trends
3.6 Emerging OSS Opportunities and Niche Markets
3.7 Major Technology Trends
3.7.1 Broadband Transmission and Switching
3.7.2 Object Orientation
3.7.3 The Role of the Internet
Chapter IV
OSS CUSTOMER MARKETS
4.1 Introduction
4.2 Domestic Wireline Market Needs
4.2.1 Coping with Competition
4.2.1.1 Implementing Local Number Portability
4.2.1.2 Effective Unbundling/Electronic Bonding
4.2.1.3 Lower Operational Costs/Outsourcing
4.2.1.4 Wholesale Local Service/Network Quality
4.2.1.5 Market Differentiation
4.2.1.6 Unearthing New Revenue Sources
4.2.2 New Broadband Technologies
4.2.3 The Growth of the Internet...
4.2.3.1 ... and PSTN Congestion
4.2.3.2 The Threat of Internet Telephony
4.2.3.3 Easier Information Access
4.3 Domestic Wireless Market Needs
4.3.1 Reducing Customer Churn Rates
4.3.2 Achieving Over-The-Air Service Activation
4.3.3 Maintaining Network Reliability and Quality
4.3.4 Meeting Wireless Number Portability FCC Mandate
4.3.5 Reducing Fraud Losses
4.3.6 Collecting Revenues from Intercarrier Billing
4.4 International Wireline Market Needs
4.4.1 Coping with the Demise of Monopolies
4.4.2 Different Regions, Different Requirements
4.4.3 Competition by Consensus
4.4.4 OSS Sales Opportunities
4.5 International Wireless Market Needs
4.6 Cable TV Service Provider Market Needs
4.6.1 Maintaining Revenue Growth
4.6.2 Consolidation and Cost Control
4.7 Internet Service Provider Market Needs
4.7.1 Network Equipment Upgrades
4.7.2 Ensuring Network Reliability
4.7.3 Providing Internet Network Security
4.7.4 Billing for Bundled Internet Services
4.7.5 Internet Bandwidth Management for Enterprises
4.7.6 Meeting Consumer Demand for Fast Internet Access
4.7.7 Providing Web Page Marketing Analysis
4.7.8 Offering Reliable Internet Telephony
Chapter V
OSS VENDOR PROFILES
5.1 Introduction
5.2 Summary of OSS Vendors
5.3 Vendor Profiles
5.3.1 Alcatel Telecom
5.3.2 AMDOCS, Inc.
5.3.3 Andersen Consulting
5.3.4 Applied Innovation Inc.
5.3.5 Architel Systems Corporation
5.3.6 Bellcore
5.3.7 CableData, Inc.
5.3.8 Cincinnati Bell Information Systems
5.3.9 CrossKeys Systems Corporation
5.3.10 Computer Sciences Corporation
5.3.11 Electronic Data Systems Corporation
5.3.12 Granite Systems Research Corporation
5.3.13 Hekimian Laboratories, Inc.
5.3.14 Hewlett-Packard Company
5.3.14.1 Ericsson/Hewlett Packard Telecommunications
5.3.15 International Business Machines Corporation
5.3.16 ISR Global Telecom, Inc.
5.3.17 Kenan Systems Corporation
5.3.18 Lucent Technologies, Inc.
5.3.19 Microsoft Corporation
5.3.20 Newbridge Networks Corporation
5.3.21 Nortel
5.3.22 Open Networks Engineering, Inc.
5.3.23 OpenCon Systems, Inc.
5.3.24 Objective Systems Integrators, Inc.
5.3.25 Scopus Technology, Inc.
5.3.26 Sun Microsystems, Inc.
5.3.27 TCSI Corporation
5.3.28 The Vantive Corporation
5.3.29 Vertel Corporation
5.4 List of Other OSS Vendors
Chapter VI
MARKET FORECAST
6.1 Introduction
6.2 Methodology
6.2.1 Market Analysis Structure
6.2.2 OSS Application Categories
6.2.3 Addressable Market Methodology
6.2.4 Methodology Algorithm
6.2.5 Forecasting Model Enhancements
6.3 Global Forecasts
6.4 North America
6.4.1 Wireline
6.4.2 Wireless
6.4.3 Broadband
6.4.4 Professional Services
6.5 International
6.5.1 Wireline
6.5.2 Wireless
6.5.3 Broadband
6.5.4 Professional Services
6.6 Europe/Middle East
6.6.1 Wireline
6.6.2 Wireless
6.6.3 Broadband
6.6.4 Professional Services
6.7 Asia/Pacific
6.7.1 Wireline
6.7.2 Wireless
6.7.3 Broadband
6.7.4 Professional Services
6.8 Latin America/Caribbean
6.8.1 Wireline
6.8.2 Wireless
6.8.3 Broadband
6.8.4 Professional Services
Appendix
Table of Figures
Chapter I
I-1 Network Support Overview
I-2 Worldwide OSS Sales Revenue Forecast 1997-2002
I-3 Total North American Wireline OSS Sales by Market
Segment, 1997 and 2002
I-4 International Professional Service Revenue Forecast
1997-2002
Chapter II
II-1 Employees per Thousand Subscribers in 1994
II-2 Operations Support Dataflow
II-3 Business Operations Systems
II-4 Network Management Systems
II-5 Worldwide Distribution of OSS Sales Revenue 1997 and
2002, By Region
II-6 OSS Software and Hardware Component Mix, 1997 and
2002
Chapter III
III-1 TMN Logical Layer Architecture
III-2 US Cellular and PCS Subscribers (Millions)
III-3 Worldwide Cellular and PCS Subscribers (Millions)
III-4 Service Revenue per Subscriber ($Millions)
III-5 PDH Multiplexer Hierarchy
III-6 SONET/SDH Ring
III-7 Common Object Model
Chapter IV
IV-1 Local Number Portability Using Location Routing
Number
Architecture
Chapter V
V-1 CBIS Precedent 2000 Business Management System
V-2 Ericsson-HP TMOS Manager Overview
V-3 Scopus Enterprise Workflow
Chapter VI
VI-1 Components of IT Budget
VI-2 OSS Component Mix, 1997 and 2002
VI-3 Worldwide OSS Expenditures by Application, 1997
VI-4 Global Carrier Revenue by Region, 1997 and 2002
VI-5 Global Wireline and Wireless Carrier Revenue, 1997
and 2002
VI-6 Total Worldwide OSS Sales Revenue, 1997-2002
($Millions)
VI-7 Worldwide Distribution of OSS Sales Revenue by
Region, 1997 and 2002
VI-8 Worldwide OSS Sales Revenue Forecast, Wireline vs. Wireless, 1997-2002 ($Millions)
VI-9 Total North American OSS Sales Revenue, 1997-2002 ($Millions)
VI-10 Total North American OSS Sales Revenue, Wireline
vs. Wireless, 1997-2002 ($Millions)
VI-11 North American Wireline OSS Sales Distribution by
Type, 1997 and 2002
VI-12 Total North American Wireline OSS Sales by Market
Segment, 1997 and 2002
VI-13 North American Wireless OSS Sales Distribution,
1997 and 2002
VI-14 North American Broadband OSS Sales Distribution,
1997 and 2002
VI-15 North American Broadband OSS Sales by Market
Segment, 1997 and 2002
VI-16 Total International OSS Sales Revenue 1997-2002
($Millions)
VI-17 International OSS Sales Revenue, Wireline vs.
Wireless, 1997-2002 ($Millions)
VI-18 International OSS Revenue Distribution by OSS Type,
1997 and 2002
VI-19 International Wireline OSS Sales by Region, 1997
and 2002
VI-20 International Wireless OSS Sales by Type, 1997 and
2002
VI-21 International Wireless OSS Sales by Region, 1997
and 2002
VI-22 International Broadband OSS Sales by Type, 1997 and
2002
VI-23 International Broadband OSS Sales by Region, 1997
and 2002
VI-24 Europe/Middle East OSS Sales Revenue, 1997-2002
($Millions)
VI-25 Europe/Middle East OSS Sales Revenue, 1997-2002,
Wireline vs. Wireless ($Millions)
VI-26 Total Asia/Pacific OSS Sales Revenue, 1997-2002
($Millions)
VI-27 Asia/Pacific OSS Sales Revenue, Wireline vs.
Wireless, 1997-2002 ($Millions)
VI-28 Total Latin America/Caribbean OSS Sales Revenue,
1997-2002 ($Millions)
VI-29 Latin America/Caribbean OSS Sales Revenue, Wireline
vs. Wireless, 1997-2002 ($Millions)
Table of Tables
Chapter II
II-1 OSS Definitions Summary
II-2 Worldwide OSS Sales Revenue by Type, 1997-2002
($Millions)
II-3 Worldwide OSS Sales Revenue by Region, 1997-2002
($Millions)
II-4 Worldwide OSS Sales Revenue, Wireline vs. Wireless, 1997-2002 ($Millions)
II-5 Worldwide OSS Sales Revenue Forecast 1997-2002:
Broadband vs. Narrowband ($Millions)
Chapter III
III-1 Service Provider Goal Hierarchy
III-2 Network Centric vs. Customer Centric Metrics
III-3 Major LEO/MEO Systems, Costs and Services Start
Dates
III-4 US and ITU Transmission Hierarchies
III-5 SONET and SDH Hierarchies
Chapter IV
IV-1 Customer Markets Defined
IV-2 Summary of Common Service Provider OSS Requirements
IV-3 Top Ten US Multiple Systems Operators, 1996
IV-4 Ten Largest Cable Systems Ranked by Subscriber, 1996
Chapter V
V-1 Summary of OSS Vendors
V-2 Alcatel Profile Summary
V-3 AMDOCS Profile Summary
V-4 Andersen Consulting Profile Summary
V-5 Applied Innovation Profile Summary
V-6 Architel Profile Summary
V-7 Bellcore Profile Summary
V-8 CableData Profile Summary
V-9 CBIS Profile Summary
V-10 CrossKeys Profile Summary
V-11 CSC Profile Summary
V-12 EDS Profile Summary
V-13 Granite Systems Profile Summary
V-14 Hekimian Profile Summary
V-15 Hewlett-Packard Profile Summary
V-16 IBM Profile Summary
V-17 ISR Global Telecom Profile Summary
V-18 Kenan Systems Profile Summary
V-19 Lucent Profile Summary
V-20 Microsoft Profile Summary
V-21 Newbridge Networks Profile Summary
V-22 Nortel Profile Summary
V-23 Open Networks Engineering Profile Summary
V-24 OpenCon Systems Profile Summary
V-25 Objective Systems Integrators Profile Summary
V-26 Scopus Profile Summary
V-27 Sun Microsystems Profile Summary
V-28 TCSI Profile Summary
V-29 Vantive Profile Summary
V-30 Vertel Profile Summary
Chapter VI
VI-1 Systems Component Categories
VI-2 Summary of Analysis Structure: Market Segments
VI-3 Worldwide Market Segment Revenue Base and Growth,
1997-2002 ($Millions)
VI-4 Global Carrier Revenue by Region, 1997-2002
($Millions)
VI-5 Worldwide OSS Sales by Region, 1997-2002 ($Millions)
VI-6 Worldwide OSS Sales Revenue, Broadband vs.
Narrowband, 1997-2002 ($Millions)
VI-7 Worldwide OSS Sales Revenue by Type, 1997-2002
($Millions)
VI-8 Worldwide Professional Service Revenue by Region,
1997-2002 ($Millions)
VI-9 Worldwide Professional Service Revenue by Wireless, Broadband, and Narrowband
OSS, 1997-2002 ($Millions)
VI-10 Total North American OSS Sales Revenue, Broadband
vs. Narrowband, 1997-2002 ($Millions)
VI-11 Total North American Wireline OSS Sales Revenue by Type, 1997-2002 ($Millions)
VI-12 North American Wireless OSS Sales Revenue by Type,
1997-2002 ($Millions)
VI-13 North American Broadband OSS Sales Revenue by Type, 1997-2002 ($Millions)
VI-14 North American Professional Service Revenue by
Wireless, Broadband and Narrowband OSS, 1997-2002 ($Millions)
VI-15 International OSS Sales Revenue, Broadband vs.
Narrowband, 1997-2002 ($Millions)
VI-16 International Wireline OSS Sales Revenue by Type,
1997-2002 ($Millions)
VI-17 International Wireless OSS Sales Revenue by Type,
1997-2002 ($Millions)
VI-18 International Broadband OSS Sales Revenue by Type, 1997-2002 ($Millions)
VI-19 International Professional Services Revenue, by
Wireless, Broadband, and Narrowband, 1997-2002 ($Millions)
VI-20 International Professional Services Revenue by
Region, 1997-2002 ($Millions)
VI-21 Europe/Middle East OSS Sales Revenue, Broadband vs. Narrowband, 1997-2002 ($Millions)
VI-22 Europe/Middle East Wireline OSS Sales Revenue by
Type, 1997-2002 ($Millions)
VI-23 Europe/Middle East Wireless OSS Sales Revenue by
Type, 1997-2002 ($Millions)
VI-24 Europe/Middle East Broadband OSS Sales Revenue by
Type, 1997-2002 ($Millions)
VI-25 Europe/Middle East Professional Services Revenue by Wireless, Broadband and Narrowband
OSS, 1997-2002 ($Millions)
VI-26 Asia/Pacific OSS Sales Revenue, Broadband vs.
Narrowband, 1997-2002 ($Millions)
VI-27 Asia/Pacific Wireline OSS Sales Revenue by Type,
1997-2002 ($Millions)
VI-28 Asia/Pacific Wireless OSS Sales Revenue by Type,
1997-2002 ($Millions)
VI-29 Asia/Pacific Broadband OSS Sales Revenue by Type,
1997-2002 ($Millions)
VI-30 Asia/Pacific Professional Services Revenue by
Wireless,
Broadband, and Narrowband OSS, 1997-2002 ($Millions)
VI-31 Latin America/Caribbean OSS Sales Revenue,
Broadband vs. Narrowband, 1997-2002 ($Millions)
VI-32 Latin America/Caribbean Wireline OSS Sales Revenue
by Type, 1997-2002 ($Millions)
VI-33 Latin America/Caribbean Wireless OSS Sales Revenue
by Type, 1997-2002 ($Millions)
VI-34 Latin America/Caribbean Broadband OSS Sales Revenue
by Type, 1997-2002 ($Millions)
VI-35 Latin America/Caribbean Professional Services
Revenue by Wireless, Broadband and Narrowband OSS, 1997-2002 ($Millions)
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Telecom
Market
Research,
