The market for OSS/BSS in India and China is expected to reach $7.33 billion by 2020, driven by the declining ARPU and rapid growth in the telecom industry in the countries, a new report by Grand View Research said.
The research firm expects that the OSS/BSS market in India and China, which was worth $2.2 billion in 2012, will grow at a CAGR of 16.3% from 2013 to 2020.
Growing focus on customer relationship management in order to ensure customer retention and loyalty has led to investments in the OSS/BSS space, Grand View Research said.
Furthermore, service providers are offering next generation systems that provide shorter time-to-market and rapid development of services.
The market in China is expected to reach $3.45 billion by 2020, spurred by the growth in the telecommunication sector.
As customers as well as mobile network operators are looking to adopt 3G and 4G or LTE solutions, enhanced CRM activities and updating pricing plans are gaining importance, Grand View Research said.
India, which accounted for just over 24% of the overall Asia Pacific market in 2012, is also expected to grow at a CAGR of 16.3% over the forecast period.
Yet uncertain regulatory scenario and deferred adoption of mobile communication technologies in India is expected to be a barrier to industry growth.
Implementing OSS/BSS and integrating it with the existing infrastructure and legacy systems is a time and cost intensive task for service providers, and is also estimated to hamper market growth in the coming years, the research firm noted.
“The business scope of telecom service providers has been expanding, and transitioning from voice to content and internet services. OSS/BSS provides these operators with convergent billing, offering a unified view of services availed by the user, which can then be used for developing preferential pricing plans and centralized customer support,” Grand View Research said.
The market is extremely fragmented, with participants such as Ericsson, Amdocs, Huawei Technologies, Accenture jostling for market share. Consolidation has been observed to be the key business strategy, in order for companies to develop a comprehensive product portfolio and offer end-to-end solutions, the firm added.