Published: June 10, 2025
By AGL Information and Technology Staff Writers
Telecom operators worldwide are in the midst of a sweeping transformation—one focused on their networks and the digital brains behind them. Business Support Systems (BSS) and Operational Support Systems (OSS), the software platforms that underpin everything from billing and provisioning to service assurance and network orchestration, are being reengineered for agility, cloud-native scalability, and superior customer experience.
The modernization of BSS/OSS has become a strategic imperative in the 5G and AI era. Open APIs enable service providers to launch services faster, automate workflows, and integrate with third-party ecosystems.
Legacy BSS/OSS systems, often decades old and siloed, are increasingly seen as barriers to innovation. According to a 2024 TM Forum industry survey, over 70% of telecom executives identified BSS/OSS modernization as a top-three digital transformation priority, citing growing complexity, sluggish service rollout, and customer dissatisfaction with legacy tools.
With 5G services pushing telecoms toward dynamic, real-time service models, old architectures lack the flexibility to support new revenue streams such as network slicing, IoT management, and AI-driven analytics.
“The challenge isn’t just technical—it’s about transforming how the business operates end-to-end,” said George Glass, CTO of TM Forum. “A modern BSS/OSS stack empowers telecoms to adapt faster and serve customers better.”
Cloud-Native and API-First Architectures Take Center Stage
The current wave of modernization centers on transitioning BSS/OSS to cloud-native, containerized environments. By adopting microservices and open APIs—many adhering to TM Forum’s Open Digital Architecture (ODA)—telecoms are breaking monolithic systems into flexible components that can be deployed, updated, and scaled independently.
AT&T, for example, has migrated over 70% of its BSS functions to the cloud using Kubernetes-based platforms and Open API standards. In a 2024 update, the company reported a 30% reduction in operating costs and a 40% improvement in service delivery times since adopting its new architecture.
Similarly, Telefónica has implemented a unified digital stack across Latin America, combining OSS/BSS, customer experience platforms, and AI analytics engines through standardized APIs, enabling faster cross-market service launches.
Benefits: Agility, Automation, and Experience
Cloud-native BSS/OSS environments facilitate real-time provisioning, proactive issue resolution, and enhanced customer self-service capabilities critical for a competitive edge in today’s hyper-connected telecom environment.
A 2025 analysis by Analysys Mason found that telecoms that modernized their BSS/OSS saw up to a 25% reduction in average call center traffic due to improved automation and digital engagement tools.
The transformation also enhances ecosystem interoperability. By adopting open APIs, telecoms can more easily integrate with fintech services, content providers, edge compute platforms, and AI agents—paving the way for new revenue models.
Complexity and Culture
Despite clear benefits, the journey to modernization is not without hurdles. Many operators face fragmented system landscapes and entrenched organizational silos that slow down integration. A 2024 GSMA Intelligence report warned that nearly half of telecoms underestimate the internal change management and cultural shifts needed to leverage modern BSS/OSS fully.
“To reap the benefits, you have to rethink not just your technology, but your workflows and governance,” noted Angela Logothetis, CTO of Amdocs Open Network.
There are also cybersecurity considerations. Moving critical operations to the cloud increases the attack surface, requiring robust identity, access, and zero-trust architectures.
The Drive Toward Autonomous Operations
The next BSS/OSS modernization phase is already underway: embedding AI/ML to enable closed-loop automation and predictive operations. Operators like NTT DOCOMO and Orange pilot intent-based network orchestration systems, allowing AI to dynamically adjust real-time configurations based on policy and demand shifts.
Moreover, as Open RAN matures and telcos lean into disaggregated networks, BSS/OSS will play an increasingly vital role in orchestrating multi-vendor ecosystems and service-level assurance.
As telecom operators transition from connectivity providers to digital service enablers, modernizing BSS/OSS is no longer optional—it’s foundational. Unified, cloud-native, and API-driven platforms streamline operations and enable telcos to capitalize on emerging services, deliver superior customer experiences, and compete in an ecosystem-based digital economy.
The road may be long and complex, but the destination is clear: a more agile, intelligent, and customer-focused telecom future.
