Legacy Operations Support System (OSS) and Business Support System (BSS) infrastructure in telecommunications pose a risk to industry expansion, as a $211 billion modernization drive hastens, according to a report by IDC-Ericsson.
In a landmark report published by the International Data Corporation (IDC) in June 2025, titled Mapping the OSS/BSS Transformation Journey, the global OSS/BSS-related capital expenditure was forecasted to reach an impressive $211 billion between 2025 and 2028. The report, sponsored by Ericsson, was based on the lived experiences of Tier 1 communications service providers (CSPs) and offered a roadmap for evolving OSS/BSS infrastructure to meet the demands of modern telecom markets.
The report emphasized the need for operators to invest in data management, building unified data ecosystems with strong governance. This transformation is crucial for modern telecom operations and advanced 5G service enablement. Unfortunately, the other four critical operational transformation pillars were not explicitly detailed in the search results, suggesting that the report focuses on multiple key areas of operational transformation involving OSS/BSS modernization.
The report highlighted the importance of implementing intent-driven, end-to-end orchestration frameworks for managing complex, multi-domain services and accelerating service innovation. It also underlined that modernization is no longer optional but a strategic necessity for operators, with those failing to overhaul their OSS/BSS risking falling behind competitors.
AI and generative AI are considered essential by 62% of operators for achieving digital transformation goals. The report advised telcos to standardize architectures, prioritize business value in technology investments, and cultivate a culture of continuous innovation to remain competitive. Ericsson emphasized that OSS/BSS transformation is crucial for telcos to "sell, deliver, and get paid" in a future defined by autonomous networks, programmable connectivity, and experience-led growth.
The struggle with outdated OSS/BSS platforms is hampering operators' ability to unlock revenue from emerging use cases across industries such as manufacturing, healthcare, and financial services. To address this challenge, the report outlined five critical operational transformation pillars that CSPs must address: Network and service automation, agile and flexible service creation, customer experience management, revenue management and monetization, and operational efficiency and productivity.
The report also stressed the need for creating unified customer views, modular architectures, and AI-enhanced monetization systems to improve engagement and reduce churn. Interestingly, 74% of operators are investing in tools to improve customer experience, while 37% are shifting to new service revenue models.
In conclusion, the IDC report underscores the importance of OSS/BSS transformation for telecom operators in the era of advanced 5G services, autonomous networks, and new monetization models. To remain competitive, operators must invest in data management, build unified data ecosystems, and transform their legacy OSS/BSS systems to address the identified operational transformation pillars.
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