Digital transformation is a term often used by authors covering the telecommunications industry. But the truth is that carriers are in a constant state of technological flux. They don’t simply change their architecture overnight. Instead, they’re continuously looking for solutions to increase efficiency and improve customer satisfaction.

In the last decade or so, telcos have invested sizable funds in OSS/BSS platforms, automation tooling, cloud infrastructure, number portability, and 5G core deployment. Their end goal is to ensure faster service delivery, reduce overall costs, and improve scaling. 

Unfortunately, although companies understand the need for modernization, many of them are too static. High upfront costs and complex deployment are just two reasons that are holding back innovation. Only by recognizing these factors can we finally introduce solutions that would get the industry to that next level. 

Sticking to the Legacy Architecture

Although modernizing architecture sounds like a logical next step for many operators, most of them are reluctant to pull the plug. A lot of telcos still rely on BSS stacks from the early 2000s, proprietary OSS platforms, and VNF-based network functions. Not only is this technology unsuitable for today’s consumers, but it also doesn’t work with modern software and systems.

The reason why most telcos still haven’t changed their workflows is that the transformation would be rather slow and painful. It would affect revenue stream, customer commitments, and daily operations, putting everything on hold. To fix the issue, many businesses try to work around these constraints rather than address them.

For example, many telcos deploy new cloud-native functions alongside legacy tech. They build layer upon layer of technology, which often conflict with one another. The problem with this mindset is that operators incur higher and higher expenses, increasing the eventual cost of migration.

While aware of the issue, telcos have their hands tied. They could potentially prioritize tech decommission, but that would cost too much money. So, many of them are stuck in an endless loop, patching old solutions with new ones without ever making the necessary shift. 

Relying on Siloed Systems

Telcos generally structure their businesses around different network domains, including mobile, fixed, OSS, BSS, and IP, each operating independently. In day-to-day operations, these domains coexist, forming a large, complex telecommunications platform. Just to maintain the system, you must employ numerous network engineers, developers, and ancillary staff.

The complex network structure not only requires integrating different technologies but also cooperation between teams. This is why any digital transformation initiative would require an organizational shift, with teams restructured to meet the new needs. Otherwise, employees would continuously bump heads in an attempt to maintain their part of the system.

For example, introducing automation features for both OSS and BSS would require coordination between two departments, each with different budgets and priorities. As a result, even the simplest tasks are three times longer than necessary. The only way to address the problem is to unify teams and technology, ending the siloed approach. 

Using Obsolete Procurement Processes

Back in the day, partnering up with a vendor was a major decision for telcos that could determine their future direction. Network equipment was often used for several decades, which is why operators were highly dependent on their partners. In the end, any mistake when choosing software would lead to major operational delays.

As a result, operators commonly had a long and drawn-out procurement process. In many cases, it would take companies from 12 to 24 months to make a major investment. While this might have worked back in the day, cloud technology has completely changed the buying methodology.

Software companies nowadays update their software monthly, which is why the quality dynamic on the market is constantly shifting. A program that was considered the best in business could easily be eclipsed in just a few months by several advanced alternatives. So, making any long-term commitment would be foolish.

In this new world, operators who made fast, proactive decisions would come on top. The good news is that this isn’t as much of a problem as some other points on the list. For example, it is much easier for operators to change their procurement procedure than to change infrastructure. 

Having a Fear of Operative Risks

Carriers always prioritize health and the availability of their networks. Businesses in this industry are especially concerned about outages, as they can lead to client dissatisfaction and financial penalties. Because of that, every decision they make is slowed almost to a crawl in an attempt to avoid negative consequences. 

While being meticulous and adhering to a strategic vision are essential for any large business, there’s a difference between thoroughness and risk-aversion. Carriers, in particular, are often guilty of showcasing low risk tolerance during platform migration, deployments, and configuration changes. 

Slowly, the risk-aversion culture spreads to other procedures, to the point where telcos implement convoluted change management processes for even minor software updates. Instead of finishing tasks within days, these changes take weeks and even months to complete, often pending approval from several managers. 

Suffering From Complex Integrations

Whenever providers introduce a new solution, they must consider the existing tech stack. The new software must work properly with the existing OSS, BSS, data sources, and operational workflow. The question of integration is so important that operators even introduce separate strategies that would tackle the issue.

Without a workflow, providers are forced to build a customer interface for each system and platform. This eventually leads to an integration architecture that’s rather convoluted, especially if you’ve just started working in a company. With every new deployment, the complexity grows further, making future deployments that much slower and more expensive. 

Improving Your Digital Transformation

To optimize their digital transformation, telcos must create a comprehensive strategy that tackles every phase of the process. They must simplify software procurement and integrations without fearing potential change. Most importantly, operators must introduce all-in-one platforms that would allow them to tackle the entire process from a single dashboard.