Cost Optimization in Telecom Sector

Telecom Business Review | Wednesday, August 10, 2022

Cost optimization models in the telecom industry are a hot topic for operators seeking growth and competitive advantages.

FREMONT, CA: With the addition of new digital players using the advantages of technology to the complete extent, the bargaining landscape in the telecommunications industry has considerably changed. While rapid developments are taking place in the industry, the consumers’ demands, preferences, and needs are transforming quickly.

To ensure profitability and growth, operators place particular importance on cost management and seek new ways to reduce costs with innovative approaches to replace conventional methods.

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Why is Cost Optimization Important in Telecom?

The struggle to develop new cost reduction methods and generate additional income is becoming increasingly intense in the highly competitive telecommunications industry. Hence, cost optimization models in the telecom industry are a hot topic for operators seeking growth and competitive advantages.

As pressures on margins and prices rise in the telecom industry, operators face a significant profit decline. Despite this decline, shareowners remain expecting satisfying returns and maintaining growth.

A huge number of operators have tried conventional methods to reduce costs. Still, most of them lack the financial means to launch new services to keep up with rapid developments while investing in next-generation technologies such as the Internet of Things (IoT) or 5G.

With the support of intelligent automation, Virtualization, NFV, and cloud computing, a substantial cost reduction can be attained. Additionally, by leveraging new services enabled by 5G, mobile commerce, data monetization, the Internet of Things (IoT), tailored B2B industry services, and the digitalization of their present business, operators can create fresh revenue streams.

How Does Cost Optimization Function in the Telecom Industry?

In the coeval highly competitive landscape, it takes substantial changes in the operating model to achieve significant cost reductions. Operators can carry out systematic root-cause analyses to recognize the major cost drivers and saving potentials. Among the major points to consider are complete transparency in costs, performing a comprehensive OpEx/CapEx analysis, and revealing hidden potential in savings and new revenue streams.

Optimizing costs needs a radical change of culture across the entire organization. A culture that constantly challenges the existing means and expenditure items helps organizations adapt to swiftly changing conditions and ensures higher profits.

Guaranteeing alignment among units, as well as alignment between short-term and long-term goals, is another important point to consider. Management teams should strive to achieve this to leverage operational saving measures by utilizing proper tools and procedures.

Considering present trends, it is essential to reduce long-term costs in the telecom industry. Network sharing and outsourcing can aid organizations to this end. And as referred above, a broad range of fresh OpEx saving possibilities can be allowed by utilizing next-generation technologies.

How to Decrease Costs with Telenity Cost Optimization Solutions?

To help operators diminish their OpEx and CapEx, Telenity presents advanced NFV-enabled, 5G-ready VAS consolidation solutions. Whether in the public or private cloud, these solutions enable operators to achieve substantial OpEx savings without compromising service quality.

VAS Consolidation Platform (VCP) allows operators to unify several value-added services on a single software in which network and computing resources, moreover capacity usage licenses, are shared; integration towards core network and OSS/BSS networks are unified, and service/financial operations of the operator is simplified. Therefore, both the first investment and operating expenditures can be reduced.

Operations can be optimized with unified user interfaces, configuration management, fault management, auditing, reporting troubleshooting tools, and a flexible shared license mechanism. And finally, yet importantly, flexibility in vertical and horizontal scalability of the platform evolves a lifesaver considering the continuously changing trends and needs.

Cost-Effective Deployment with Optimized Resources

Telenity’s solutions allow all common network and computing resources to be shared among the various hosted applications. Resources incorporate:

• Databases.

• Signalling/voice resources.

• BSS/OSS integration points.

• Operational procedures (Fault Management, Auditing, Troubleshooting, etc.).

• User interfaces.

With all these resources integrated and shared, the Telenity platform can be united into the operator’s backend nodes in a much easier, quicker, and more cost-effective way. Operators can optimize resources by using a single integration point for multiple services.

Take Advantage of the Cloud Technology for OpEx Savings

By employing cloud technology, MNOs can accomplish significant OpEx savings. Telenity provides cloud deployment as virtual entities, as well as VNFs. Cloud deployment can be done through either a private cloud hosted by the operator or a public cloud. Any virtualization and cloudification technology (match to dedicated, silo-based, physical deployment technologies) decreases hardware footprint and energy consumption, resulting in operation and subsistence cost savings.

Low Complexity with Telenity VCP

With its architecture that backs “unification on all fronts,” Telenity decreases the complexity of the operator’s service network architecture and improves the efficiency of all operational, planning, and business teams. Instead of maintaining several operation/planning teams dedicated to each VAS application, operators can improve the structure of their functional groups to accomplish significant OpEx savings.

What is the Telenity VAS Consolidation Platform?

Oriented to support mobile operators in facing the business requirements of the future, Telenity VAS Consolidation Platform (VCP) is a high-performance, carrier-grade, completely converged, open voice/video and messaging platform. It allows the bottom-up transformation of mobile operator services, building on top of a virtualized hardware infrastructure that employs common off-the-shelf (COTS) components, and shared industry-standard media and signalling servers, eradicating dependencies on specialized network appliances.

Telenity VAS Consolidation Platform (VCP) combines all the essential messaging and voice services of the mobile VAS world on a robust platform of the greatest telecommunication standards.

Telenity VCP Service Scope and Key Deployments

Enabling many benefits, comprising faster time-to-market, on-demand scalability / de-scalability, improved OpEx and CapEx, simplified integration, and optimized daily operations, Telenity VCP gives various applications:

• Consolidated Messaging: 3GPP compliant next-generation, IP-based, high-performance, and consolidated messaging solutions.

• Consolidated VAS: Network-agnostic, converged voice/video and intelligent call services.

• Location-Based Services: Location empowerment for third-party applications, consumer positioning solutions, and asset & employee tracking solutions for enterprises.

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