Integrated BSS approach delivers standalone FiberCo for operators

Rising costs, intense competition, and constantly changing consumer demands have pushed telcos to find new ways to optimize their businesses. One potential solution is delayering. This process involves breaking down the traditional telecommunications model into three distinct vertical layers. The NetCos are responsible for the core network and technology assets, ServeCos manage the retail operations and services sold to end-users, while InfraCos oversee hardware and assets, including the broadband networks.  

By re-evaluating their operational structures through delayering, telcos can improve operational efficiency, free up capital, and invest in next-generation connectivity and related applications like IoT. However, implementing this approach is not without its challenges. A robust and effective IT strategy is essential to fully realizing the benefits of delayering. For the purposes of this article, we will focus on the example of wholesale FiberCos, a type of InfraCo.  

Balancing opportunities and risks  

FiberCos, responsible for delivering high-speed fiber optic networks, will become a core component of this new organizational structure. Investment in broadband is set to drive growth, enabling telcos to increase both ARPU and market presence. The Fiber to the X (FTTX) market is expected to grow to $43 billion by 2030, appealing to investors “seeking the stable, long-term cash flows that infrastructure can offer.”  

Despite the clear advantages of fiber infrastructure, operators face challenges in managing the complexities of running a wholesale fiber business. IT systems are crucial for converting infrastructure into revenue, but they can be challenging to implement. Fiber is unique within the telecoms ecosystem, requiring a specific IT stack to accommodate the various processes, particularly for a wholesale model. Managing these requirements can be complicated. Furthermore, operators transitioning from legacy systems or introducing new infrastructure must invest considerable time and CAPEX before monetising it. 

These challenges, coupled with the need for a quick time to market, may cause operators to hesitate when it comes to investing in fiber. However, the potential rewards of operating a wholesale FiberCo far outweigh the associated risks. A solid IT strategy supported by a pre-integrated and comprehensive Business Support Systems (BSS) solution is essential. Furthermore, working with a single partner with the right functionalities will accelerate the set-up and deployment process. Thereby, reducing vendor dependency, minimizing integration efforts, and lowering the need for customization. Then it’s a case of implementing these four pillars to achieve success. 

End-to-end support for fiber processes 

A BSS system capable of delivering complete, fiber-specific end-to-end support is essential for operators to maximize their infrastructure. It must support various services and system capabilities through pre-configured workflows using a data model designed specifically for fiber, eliminating the need for operators to build their FiberCos from scratch.  

Integrating the business requirements of IT systems and partner ecosystems is complex, necessitating a comprehensive stack to address these challenges. Fiber networks have unique fulfilment needs involving multiple automated tasks, such as feasibility checks based on address inventory and conditional installation appointment reservations. To manage this complexity, FiberCos needs a BSS that balances manual and automated steps for efficient delivery. That said, it’s also essential to work with a partner that understands the complexities of FTTX broadband services in relation to broader telecom operations.  

The BSS must handle intricate fiber-related scenarios, such as operator transfers and penalties for missed appointments. Various families in the FiberCo’s catalog—like FTTx or XGS-PON—should be pre-configured to align with appropriate workflows and processes to ensure a fast time to market. Additionally, managing the end-to-end ecosystem is complex, as partners might need to provision services like Wi-Fi routers or TV set-top boxes. Significant benefits can arise if FiberCos can orchestrate processes and have end-to-end ownership, including installing equipment on behalf of partners. BSS should support these hybrid ownership models to unlock advantages. 

Capabilities to simplify wholesale fiber complexity 

FiberCo operators require a BSS solution that quickly and cost-effectively integrates into their IT landscape, explicitly catering to wholesale needs. Practical customer and partner management is essential for success. A dedicated customer and partner management module should serve as a master source for all accounts, automating the onboarding lifecycle process and ensuring a seamless digital sales experience. 

FiberCos have various agreements with partners to market services at varying prices, often with complex terms, making integration into the BSS process challenging. Integrated with ordering and billing systems, an agreement management module will support customized business contracts so wholesale fiber partners can receive personalized service. A revenue management module is also vital for wholesale billing activities, such as managing invoicing based on agreements and subscription dates, while ensuring integration with financial systems for smooth reporting.  

A comprehensive catalog is crucial for managing complex product offerings and addressing market challenges. It must support the entire product lifecycle, allowing quick adaptations to new internet speeds and flexibility to meet different partners’ needs. The order capture, orchestration, and fulfilment processes must be smooth and closely aligned with the catalog while integrating with external systems and internal BSS applications, which requires significant flexibility. A unified order management module provides this flexibility by supporting catalog and workflow-driven processes, enabling FiberCos to define the decomposition and fulfilment steps for various products based on their requirements. 

Lastly, problem management and troubleshooting are essential for smooth service operations. This necessitates a workflow-driven case management solution that can adapt to the FiberCo’s needs and integrate seamlessly with other applications to facilitate the end-to-end ticketing process. 

Easy integration and adaptability  

A BSS must be open to a FiberCo’s partners and channels, enabling them to utilize its capabilities and seamlessly integrate with its broader IT and network ecosystem. It should comply with TM Forum and LSO standards, facilitating straightforward integration with external and legacy IT applications such as ERP financial systems, device management, and logistics. Additionally, the BSS must be adaptable to meet the specific needs and processes of the FiberCo.  

A FiberCo’s capabilities should be accessible through APIs via a partner API Gateway. This setup will streamline operations for all parties involved and support a self-service partner portal tailored to the FiberCo’s infrastructure. This portal will enable partners who seek quick time-to-market to manage orders, tickets, and bills effectively.  

Furthermore, configurable business processes and workflows—from product portfolio setup to business rules for order capture, fulfilment orchestration, and troubleshooting—can significantly reduce time-to-market. The BSS should also be able to create product extensions and configurations through a continuous DevOps development and release process. This flexibility allows for easy improvements and product upgrades as partners’ needs change.  

By enabling easy integration and adapting to existing processes and legacy systems in this way, the right BSS will help facilitate the successful launch of a FiberCo. 

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Scalability for business evolution  

When launching a FiberCo, operators often find that they lack essential capabilities within their IT landscape and require flexibility in their systems to address this. They need a BSS solution to help them generate revenue while scaling their operations.  

For example, if a new FiberCo doesn’t have a proper service activation layer, the BSS could serve as a light Service Order Management (SOM) system to fill that gap. Alternatively, the BSS could introduce appropriate manual processes via workflows or bypass specific steps altogether if a workforce management system is missing.  

As a FiberCo grows, it must automate additional capabilities, fully integrate with new and existing systems, and expand its BSS functionality. Therefore, having a solution that can evolve to meet these changing requirements is crucial for accelerating the timeline to revenue while building an efficient business.  

Operators will encounter several investment challenges when launching a FiberCo. The initial investment in the network itself is substantial, and adding considerable IT costs can pose a barrier to entry for some. They will need a cost-efficient solution, particularly in the early stages when the FiberCo has yet to generate revenue. Instead of investing in “one-size-fits-all” BSS, operators should instead seek a flexible provider that can adjust the pricing of their BSS, allowing them to pay as they grow. This approach enables them to defer significant upfront investments until their FiberCo is successful. 

Seizing the fiber opportunities 

As the market rapidly expands, many operators find pursuing a delayering strategy and owning a wholesale FiberCo attractive. However, rolling out the physical infrastructure can be challenging in itself. Managing the complex elements of the wholesale business presents additional, significant challenges.  

Despite these difficulties, adopting an appropriate approach to both IT and business can unlock substantial and ongoing growth potential. A dedicated wholesale BSS solution is crucial for overcoming the challenges of implementing infrastructure, integrating with partners and customers, and scaling the business as it grows.  

A wholesale “BSS-in-a-box” solution, which includes pre-configured processes, workflows, catalog data models, and best practices, will enable FiberCos to integrate across the entire fiber ecosystem. This streamlining can lead to a more efficient operation that maximizes revenue. Additionally, with comprehensive support for fiber processes, FiberCos can cater to demand from partners of all sizes, accommodating a variety of business models ranging from large operators to small resellers.  

With the right BSS solution, FiberCo operators can effectively convert their fiber infrastructure into revenue. By overcoming numerous delivery and management challenges and significantly reducing time to market, they will be positioned to seize the opportunities presented by delayering, particularly in the fiber sector. 

This article was originally published in Optical Connections magazine.