The business support system (BSS) remains the lifeblood of any communications provider. You can spend everything you want on the network, but if you want to get that fast speed for a customer and make it usable, you can not overlook the back office.
If you have an aging BSS, your own survival may be at risk. These warnings concern telephone operators for a while. Report from PwC in 2014 which warned of the consequences of not offering a perfect customer experience. On the other hand, traders need to achieve cost, efficiency and agility targets if they want to get their right update.
"With BSS in the heart of a company, transforming them means both great opportunities and big risks for any operator," notes the report. "Inadequate transformations have negatively impacted customer experience, including unexpected changes in products or bills and interrupted service, and have led to substantial loss of customers, yet for those who do it well, the the positive side is just as dramatic ".
This two-way street can be seen with regard to the wave of emerging technologies entering the telecommunications landscape. Customers want the future now, whether it's 5G technology, artificial intelligence or M2M. But can operators benefit from it?
With blockchain – quoted by an analyst at the beginning of this year as the biggest technology from the Internet, the answer could be yes.
In 2016, Note Deloitte that blockchain could help CSPs when it came to financials. "In a context of increased competition in an increasingly digital world by light OTT operators as infrastructure, coupled with lower revenue from voice and rising costs due to high bandwidth requirements," he wrote the consulting firm, "it is necessary to reduce costs and find new sources of income."
Today, the potential of blockchain in telecommunications can be located in four silos; three within the telco ecosystem and one outside. They focus on security and fraud prevention, cost optimization, new revenue streams, and outside of vertical telco opportunities. This is important to note; while there are unique challenges in areas such as health and transportation, the blockchain connects them through the supply chain revolution.
By supporting the OSS and BSS processes, however, it is firmly placed in the cost optimization silo, and this is where an interesting collaboration intervenes. Nexign, a BSS provider for operators, is working with Bubbletone, a company focused on blockchain solutions in the telecommunications space, developing a combined solution to the first sector, modernizing BSS systems, giving CSPs the opportunity to collaborate with each other. and enable new monetization flows.
The combined solution offers various advantages, including the joint development of software and marketing activities, as well as commercial cooperation. Because it is based on blockchain technologies, it shares its most important principles, from high availability to an open and transparent environment.
Take roaming as a key example on the side of cost optimization. A typical structure for many operators in Northern Europe accounts for up to 90% of its turnover as local traffic, with only 10% based on international roaming. Of that 10%, more than half belong to the high season peaks. As a result, there is a significant disparity between the level of demand and revenue coverage – and there is a very low level of flexibility for discounts within the current roaming agreements.
The big players in the market rarely trust each other – and it's a similar case with telecommunications. But with a blockchain owned and controlled by mobile operators, a visiting trader can offer a product, a home operator can buy it and then sell it to a subscriber.
In a broader context, this is focused on creating a new global market for digital identities. Whether it's eSIM profiles, IoT tokens, or ASP subscriptions, blockchain technology can help validate a package of authentication services provided by operators. You can generate keys and sequences and then the offer can be sold to partners.
For telecommunications companies, this is a clear call for action. Second a report released by ResearchandMarkets in July, the marriage of blockchain telecommunications technologies will generate a market capitalization of $ 993 million (£ 762 million) by 2023. Other research suggests that this figure could be a conservative estimate.
It is therefore vitally important for telecommunications companies to understand that they can become the backbone of the blockchain economy. They can be the first on the market, create new business models, both B2B and B2C, and work with organizations of all sizes. Operators must create a strategic vision and a strong and long-term roadmap in order to guarantee this opportunity by creating cases in telecommunications and in different verticals.
To do this, collaboration is vital. Communication service providers have authority when it comes to large customer bases and regulatory environments; however innovation is more of a weaker area. Nexign's partnership with Bubbletone shows how a BSS provider and a blockchain company collaborate to create new opportunities for operators: now it's up to them to take them.