Horizontal architectures for telecom transformation

The telecoms industry, traditionally vertically integrated, is now at risk of being outpaced by more agile digital service providers (DSPs). Historically, telecoms companies owned and operated their network infrastructure while also delivering services and managing customer relationships. However, the rise of high-speed data networks has facilitated the independent delivery of digital services, making the traditional model inefficient.

The shift to high-speed data has transformed end-users into both consumers and producers of data, necessitating a more flexible approach. Many telecoms companies have responded by combining services into multi-play bundles, using convergent OSS and BSS solutions for greater efficiency. Yet, this approach clashes with the growing consumer preference for unbundled services and the need for cost-effective network infrastructure.

The future of the telecoms industry lies in adopting a horizontal structure that reduces infrastructure costs and offers open access to service providers. The open access network model, or “neutral host,” separates the roles of service providers, network operators, and infrastructure owners. This model ensures fair and non-discriminatory access to network resources, fostering competition and innovation.

Despite the benefits, the open access model requires standardisation and the role of wholesale aggregators to connect multiple service providers with network operators efficiently. The TM Forum Open APIs facilitate this process, simplifying integration and allowing for a multi-tenant wholesale platform.

This model has been successfully implemented in Denmark, where Cerillion and OpenNet have collaborated to establish a leading wholesale aggregator platform. This platform connects numerous service providers and network operators, offering a streamlined onboarding process and increased market reach. The success of this model in Denmark demonstrates its potential to transform telecoms markets, providing greater choice and better value for customers while enhancing operational efficiency for service providers and network operators.

Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.

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