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The global market for operations support systems (OSS) -- the IT infrastructure that performs engineering, provisio...

July 22, 2002  

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The global market for operations support systems (OSS) — the IT infrastructure that performs engineering, provisioning, and management functions in telecomnetworks — will exceed US$40 billion this year and continue growing even if capital expenditures continue to decline, a new report by Insight Research has found.

The market research study by the Parsippany, NJ market research firm concludes that even as they postpone new capital equipment purchases, network operators are continuing to invest in new IT infrastructure, bringing greater efficiencies to current operations.

According to Operations Support Systems 2002-2007, network operators are expected to increase their investment in OSSes at a compounded rate of almost 12 per cent over the next five years, despite the current lockdown in the worldwide telecom industry.

The report says that these investments will be made because the new OSSes used to acquire, serve, and bill customers operate more efficiently, requiring fewer personnel than older systems. Insight says that in a very competitive marketplace, investment in OSSes will help to maintain carriers’ margins, even as bandwidth prices dwindle and new network hardware capital expenditures are delayed.

“Amidst the current crisis in telecommunications industry worldwide, operators will only spend if they can recognize an ‘Instant ROI’-a return on investment that hits to bottom line in six months or less,” says Robert Rosenberg, president of Insight. “Bring the network operator a platform that can reduce the current operational expenses associated with any aspect of their on-going operations-billing, provisioning, network management, workforce management, planning or engineering-and you’ll get a fair hearing, even if that carrier has announced another round of capital expenditure reductions.”

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