OSS/BSS Software Market Trends

Growth Drivers

• Mandated transition to open RAN architecture driving OSS integration demand: The shift to Open Radio Access Network (O-RAN) standards has bolstered network sovereignty as well as vendor diversity. The acceleration of the shift by governments to O-RAN standards requires telecom operators to adopt disaggregated OSS frameworks to support vendor-neutral interfaces. In 2023, the U.S. NTIA allocated USD 1.6 billion under the aegis of the Public Wireless Supply Chain Innovation Fund for integrating OSS/BSS systems across the 5G infrastructure programs in the country. Additionally, the regulatory-backed push to open RAN architecture is poised to compel a greater number of operators to upgrade legacy OSS stacks.

• Government-funded fiber rollouts necessitate scalable BSS for mass service provisioning: A major driver of the global market is the national broadband expansion programs, propelling telecom providers to deploy scalable BSS to manage the lifecycle management for new subscribers across regions. For instance, under the BEAD program of the U.S., over USD 40 billion has been committed to expand high-speed internet across the U.S. as of mid-2023. Additionally, the program’s scale has driven the demand for BSS systems that are capable of automating customer acquisition. Opportunities are expected to expand in Tier 2 markets across regional markets where ARPU margins are thin and the demand for operational efficiency is high.

Rising 5G Deployment and Impact on the OSS/BSS Market

The rollout of 5G networks around the world is transforming the OSS/BSS market considerably. These systems now need to handle more complex tasks, such as flexible network slicing and real-time billing, as 5G services are more advanced and varied than before. To keep up, telecom operators are moving to cloud-based, automated platforms that can manage the scale and speed of 5 G. According to a recent report from the International Telecommunication Union (ITU), global 5G subscriptions reached about 1.52 billion by early 2024. The table below highlights key statistics of 5G deployment, which have supported high-volume data processing and agile service monetization:

Challenges

• Persistent fragmentation across OSS/BSS ecosystems: A major impediment to the global  market is the fragmentation across network environments and vendors. With numerous operators adopting cloud-native OSS/BSS systems to support 5G, the platforms often originate from multiple vendors, which creates a lack of interoperability standards. This fragmentation reduces the end-to-end visibility, negatively impacting service orchestration. For instance, the European Telecommunications Standards Institute (ETSI) estimated that more than 50% of operators faced integration challenges in 2024 across OSS/BSS modules.