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Report tells cash-strapped telecom firms: Invest in a new OSS

Successful telecommunications carriers are just beginning to learn how to build new Operations Support Systems (OSS...


October 22, 2002  


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Successful telecommunications carriers are just beginning to learn how to build new Operations Support Systems (OSSs) that will both reduce operating costs and support new services for growth, while at the same time maintaining control of capital expenditures.

That’s the conclusion of two white papers released today by The Eastern Management Group, a U.S. management and IT consulting firm that consults to carriers, equipment manufacturers and software companies in the communications and other IT industries.

“It’s no secret telecommunications firms are strapped for the capital they would ideally need to build new OSSs,” stated Chris Talbott, a director with The Eastern Management Group and the author of the reports.

“But they need them, because their growth must come from efficiently delivering new services, since plain-vanilla bandwidth is becoming more and more of a commodity. VoIP and broadband, for example, may have slowed, but they can’t stop — that’s all the new revenue.”

Companies must also spend money to save money, but since money’s so tight, they have to choose very carefully, Talbott says. “We’re telling our clients it’s worthwhile, more than ever, to put effort into making the best possible OSS choices. Any mistake is potentially fatal.”

At the same time, capital investments must pay for themselves quickly. For example, systems for Service Level Management offer relatively rapid ROI, since they enable higher-margin services, versus complete overhauls of provisioning systems, which while desirable, take much longer to implement and then save on headcount.

Further information on the reports is available at www.easternmanagement.com.