Demand Grows for Off-the-Shelf OSS/BSS Solutions

Frost & Sullivan’s Stratecast Division recently released preliminary data from an in-depth research report finding drastic changes in communications service provider (CSP) buying habits for customized OSS/BSS solutions. According to Stratecast, CSPs are purchasing commercial off-the-shelf products that do not require customization. Previous Stratecast research in 2005 showed that 16 percent of CSPs questioned were implementing highly customized OSS/BSS solutions. This figure has now plunged to 2 percent.

Annual OSS/BSS spending is estimated to be 20 to 25 percent of CAPEX. Based on combined estimates, annual service provider CAPEX is expected to be $150 billion to $250 billion. This results in OSS/BSS capital spending estimates of $30 billion to $62.5 billion annually, which does not include professional services beyond those required to install the solution or managed services. More