Reference architecture of legacy telecom operators

Starting from the early 2010s till date (2023) the majority of telecom companies are in the trap of legacy systems. The customers’ expectation has changed and digital enablement is becoming increasingly difficult for the operators. The typical legacy telecom operator has 250-300 software and the following architecture shows the most important 50 systems: Download PDF

1.) Digital Channels

- eCommerce Web & App: enables customers to browse available services and products, select the ones they want to purchase, and complete the transaction using a secure payment gateway. Their key capabilities are Commercial Catalogue, Cart Management, Order Capture, and Checkout. Typically it is integrated with Order Management and Number Management.

- Self-care Web & App: enables customers to manage their own accounts and services without the need for assistance from customer service representatives. Self-care systems typically provide a web-based or mobile interface that customers can access to perform a variety of tasks, such as viewing their account balance and usage, changing service plans, and adding or removing services. Some self-care systems also allow customers to troubleshoot technical issues and submit support requests.

2.) Legacy Channels

- IVR (Interactive Voice Response): automated telephony system that allows a caller to interact with a computerized voice system through touch-tone or voice commands, and navigate through a menu of options to access information or perform certain tasks such as making payments, checking account balances, or reporting an outage.

- SMS Self-care: it is a service that allows customers of telecom operators to perform account-related tasks via text message. With SMS self-care, customers can check their account balances, view usage details, subscribe to services, and manage their accounts by sending specific text commands to a dedicated short code provided by the service provider. This service provides customers with a convenient and easy-to-use way to access important account information, without the need for a smartphone or internet access.

- USSD (Unstructured Supplementary Service Data): it is a protocol used by cellphones to communicate with the telecom operator's systems through short codes. USSD messages allow users to access various services such as checking account balances, topping up mobile credit, and subscribing to value-added services by dialing short codes on their mobile devices. Unlike SMS, USSD messages create a real-time connection during a session, enabling interactive communication with the telecom operator.

3.) CRM (Customer Relationship Management)
It is used by telecom operators to manage their interactions with customers. CRM systems enable companies to collect and analyze customer data, improve customer experience, and develop targeted marketing campaigns. In the telecommunications industry, CRM solutions are used to manage customer accounts, manage customer orders, track service requests, provide personalized offerings, and increase customer retention.

- 360 Customer View: a comprehensive and real-time representation of a customer's interactions, preferences, and behaviors across all touchpoints with a telecom operator. This view includes data from various sources such as customer service interactions, billing history, and marketing activities. The 360 Customer View allows telecom operators to better understand their customers, provide personalized services, and improve customer experience by anticipating their needs and preferences.

- SFA (Sales Force Automation): a solution used by telecom operators to automate and streamline their sales processes. SFA tools typically include functionalities such as lead and opportunity management, contact management, sales forecasting, and performance tracking. The goal of SFA is to optimize sales processes, increase productivity, and improve customer engagement. By automating sales-related tasks, SFA enables sales representatives to focus on building relationships with B2B customers and closing deals.

- CTI (Computer Telephony Integration): is a technology that enables business applications to interact with telephone systems. CTI solutions allow telecom operators to integrate their telephony infrastructure with their CRM system, enabling functionalities such as automatic call distribution, screen pop-ups with customer information, and click-to-call features. CTI enables companies to improve their customer service by providing agents with relevant customer information in real-time, increasing efficiency, and reducing call handling time.

4.) Partner Management

- Indirect Sales / Franchise: enables Franchise partners and other Indirect Sales channels to sell telecom services, and manage customer information and customer subscriptions.

- OTT (Over The Top) / VAS (Value Added Service): telecom operators might offer products and services beyond calls, SMS, data, and TV. Over-The-Top or Value Added Added services can be content-based (such as video streaming, and audio streaming), or any miscellaneous services (such as Ring Back Tone, Voicemail, Call Forwarding, and Payment with Postpaid Charging). OTT / VAS vendors provide portals for telecom operators to manage the OTT / VAS services and the content catalog.

5.) Retail Support

- Kiosk: self-service stations that offer customers a range of telecom-related services such as purchasing SIM cards, topping up mobile plans, paying bills, and activating new services. Typically they are located in a store of the telecom operator, or in public places. These kiosks provide a convenient way for customers to manage their telecom needs and offload work from retail staff.

- Token & Numbering: it provides customers with a queue number for in-store visits or online appointment booking for in-store visits. It helps reduce wait times and collect valuable customer data for telecom operators.

- Cash Management: physical cash drawer and cash register software

6.) Analytics

- BigData: enables telecom operators to capture, process, and analyze structured and unstructured data to gain insights into customer behavior and network performance. Big Data systems help telecom companies to improve operational efficiency, enhance customer experience, and develop targeted marketing campaigns. These systems typically include technologies such as Hadoop, Spark, and NoSQL databases.

- BI (Business Intelligence): enable telecom operators to gain insights into various aspects of their operations, such as network performance and customer behavior. BI tools typically include dashboards, reports, and data visualizations that allow telecom companies to monitor key performance indicators, track progress against goals, and identify opportunities for improvement. By leveraging BI solutions, telecom companies can make data-driven decisions that improve operational efficiency, enhance customer experience, and increase revenue.

- DWH (Data Warehouse): a central repository that stores large volumes of structured data collected from various sources within a telecom operator. DWH solutions typically integrate data from multiple sources such as network operations, customer interactions, and marketing activities. By consolidating data into a single repository, DWH enables companies to perform advanced analytics and generate insights into various aspects of their operations. DWH systems support business intelligence and reporting tools that provide key stakeholders with access to actionable information in near real-time, facilitating better decision-making and more effective business strategies.

7.) Data & Document Management

- DMS (Document Management): enables telecom operators to store, manage, and track electronic documents and records. DMS solutions help telecom companies to streamline document-intensive processes such as contract management and billing. DMS systems typically include functionalities such as document capture, indexing, and search capabilities. By centralizing document management, telecom companies can ensure data security, compliance, and retention.

- KMS (Knowledge Management): enables telecom operators to capture, store, and share knowledge and information with the employees. Knowledge Management helps telecom companies to manage information related to their internal processes, policies, and business application HOWTOs. It typically includes functionalities such as document management, search capabilities, and collaboration tools that allow employees to share knowledge across the organization. By leveraging a KMS, telecom companies can improve operational efficiency and increase employee productivity.

- MDM (Master Data Management): helps telecom operators to maintain a single, accurate, and consistent view of their master data, such as customer information, customer subscription information, and product catalog. MDM systems typically include functionalities such as data quality, data governance, and data integration, that enable companies to improve operational excellence and reduce errors.

- ETL (Extract-Transform-Load): it is the process of extracting data from multiple sources, transforming it into a standardized format, and loading it into a target system such as a Data Warehouse. ETL is a critical component of data integration and analytics workflows and enables telecom operators to consolidate data from disparate sources.

- Events: enables mobile operators to process, store, and transmit large volumes of data (for example Recharge Event, Data Usage Event, Subscribe Event) in Near Real Time.

8.) ERP (Enterprise Resource Planning)

- Finance: consists of functions such as accounts payable, accounts receivable, general ledger, financial planning, and analysis.

- HR (Human Resources) Management: is used to manage human resources within a telecom operator's organization. This includes functions such as recruitment, onboarding, employee data management, performance management, training and development, and compensation management.

- Asset Management: is used to manage IT/technology assets within a telecom operator's organization. Assets include hardware, software, and other technology-related resources that are used to support the telecom operator's operations. The Asset Management system helps to track and manage the entire lifecycle of these assets, from procurement to retirement. This includes functions such as inventory management, asset tracking, software licensing, vendor management, and asset disposal.

9.) Revenue Assurance & Fraud

- Revenue Assurance: is used to ensure that telecom operators are accurately capturing and billing for all revenue-generating events. This includes functions such as revenue leakage detection, parallel rating (re-rating), and revenue reconciliation. By using a Revenue Assurance system, telecom operators can identify and rectify revenue-related issues before they become significant problems.

- Fraud Management: is used to identify, prevent, and manage fraudulent activities within a telecom operator's network. This includes functions such as fraud detection, investigation, and prevention. The Fraud Management system plays a crucial role in protecting telecom operators from financial loss, reputational damage, and legal liability.

10.) Campaign & Gateways

- Campaign Management: enables customer segmentation and campaign execution in order to increase CLV (Customer Lifetime Value), generate Incremental Revenue, Cross-sell, Upsell, increase ARPU (Average Revenue Per User), manage Churn and Retention. This is the core capability for CVM (Customer Value Management).

- Email Gateway: a unified capability to send campaign emails and transactional emails in large volumes. It manages email delivery, error handling, analytics, and reporting.

- SMS Gateway: a unified capability to send campaign SMS and transactional SMS messages in large volumes. It manages SMS delivery, error handling, analytics, and reporting.

11.) IT Process Support

- ITSM (IT Service Management): is an application to design, build, deliver, operate, and control IT services offered to telecom operator employees. For example, store sales staff can raise production incident tickets when the CRM system does not work as expected.

- Defect Management: keeps track of reported software bugs in the telecom systems’ software development.

- Release Management: it is a capability for managing, planning, scheduling, and controlling telecom systems’ software build through different stages and environments; it includes testing and deploying software releases.

- IAM (Identity & Access Management): ensures that the right users have the appropriate access to technology resources. Registering, identifying, authenticating, and controlling individuals, as well as maintaining their records and credentials. Typically there are 2 separate IAM systems at a telecom operator: one for Customers, and one for Employees.

12.) Order Management

- TPC (Technical Product Catalogue): a centralized database that manages detailed product information, such as specifications, pricing, eligibility, compatibility, and cardinality. Order Orchestration uses TPC to decompose an Order. Technical Product Catalogue has the product data mastership, every application in the telecom operator shall utilize TPC as a reference for product information.

- Rule Engine: it stores and processes data to execute the business rules that you define. The basic function of the Rule Engine is to match incoming data to the conditions of rules and determine whether and how to execute the rules. Instead of hardcoding business rules into CRM and Self-care systems, Rule Engine can ease business rule governance and change management.

- Order Orchestration: it refers to the process of managing the end-to-end lifecycle of a customer's order, from the initial request to the final delivery of service. It involves orchestrating various activities across multiple systems via integration: activation in the network, CRM update, start billing or charging, etc. Order Orchestration uses Technical Product Catalogue to decompose an Order.

- Field Force Management: manages the activities of a telecom operator’s field technicians who are responsible for installing and maintaining the operator’s telecommunications infrastructure. Capabilities: scheduling and dispatching field technicians, tracking their activities, managing communication between field technicians and the central office, and collecting data and analytics to improve operational efficiency.

13.) Provisioning & Mediation

- Mediation: a process that converts call data (CDR, xDR) to pre-defined layouts that can be imported by a specific billing/charging system or other Operations Support System.

- Interconnect: is a process for telecom operators to handle call charges for other operators thus allowing people who are using different networks to communicate with each other in both domestic and international scenarios.

- Mobile & Fixed Provisioning: a process to provide telecommunications service to a user, including every necessary step in systems and network elements to set up the service. Typically there are multiple Provisioning systems in a telecom operator based on its network infrastructure, such as one for Mobile Provisioning and one for Fixed Services Provisioning.

14.) Network Operations

- Network Inventory: a central repository of all information about network infrastructure. The end users (network operator staff) can create a configuration control process to systematically manage the entire inventory throughout each stage of the network infrastructure lifecycle. To ensure accuracy, Network Inventory monitors network equipment and checks the actual inventory against the repository. It automatically reconciles the inventory list to reflect the current inventory status, providing live, real-time network data.

- NMS (Number Management System): is an inventory management system for telephone numbers. It handles the telephone numbers throughout their lifecycle: soft allocation, hard allocation, release, port-in (a new customer brings his/her phone number from another operator), port-out (a customer moves to another operator and takes away his/her phone number). SIM inventory management might be part of NMS.

- Monitoring, Alerts & QoS (Quality Of Service): monitors network infrastructure performance, sends alarms, generates reports, and optimizes network by isolating, analyzing, and resolving service-affecting problems.

- GIS (Geographic Information System): plan, design, build and maintain telecommunications infrastructure. It helps telecom operators to analyze and visualize network data in a geographic context, allowing them to optimize network performance, reduce costs, and improve customer service. GIS is used for network planning, design, maintenance, and customer service by providing valuable insights into network data in a geographic context.

- PCRF (Policy and Charging Rules Function): is responsible for defining and enforcing policies that control network access, resource allocation, and Quality of Service (QoS) for different types of data services

15.) Billing & Revenue Management

- Rating: receives input data from network elements, Mediation, Charging, and uses predefined rules and tariff plans to calculate the charges for each customer. These charges are then passed on to Billing to generate a bill for the customer. In other words, it determines how much will it cost a second/minute based on your location, other party location, active discounts, and so on.

- Billing: integrates with other telecom systems such as Rating, and Charging to process usage data and then generate bills for each customer based on their usage. The Billing also includes features for creating and managing customers’ Postpaid billing accounts, tracking payments, creating and managing complex pricing plans.

- Charging: offers real-time charging, allowing customers to monitor their usage and adjust their service usage and balance to avoid unexpected charges. In other words, it takes the amount determined by the Rating system and actually performs a debit (subtraction) from a Prepaid balance.

- Bill Render: integrates with Billing and generates (renders) the bill in PDF, email, or other formats.

- Collection & Credit Control: responsible for monitoring customer accounts to ensure that payments are made on time and in full. It sends notifications to customers who have outstanding balances and can block services (“barring”) if payment is not made within a specified timeframe. It also provides features for debt collection, including tracking and managing debt recovery processes. In addition to payment collection and debt management, it can also perform credit control functions, such as assessing the creditworthiness of customers and setting credit limits for each account. This helps to prevent customers from exceeding their financial limits.

- Loyalty: a program designed to incentivize and reward customers for their loyalty to a specific telecom provider. Loyalty systems track customer behavior and provide rewards or incentives for customers who remain loyal to the provider. Rewards can include discounts on services, free data or minutes, or other third-party benefits that encourage customers to stay with the provider for an extended period. Loyalty systems are important for telecom companies because they help to retain customers and reduce churn. By providing incentives for customers to remain loyal, telecom companies can improve customer satisfaction, reduce the cost of acquiring new customers, and increase revenue through long-term relationships with their customers and adjacent services’ revenue. Effective loyalty systems also provide telecom companies with valuable insights into customer behavior and preferences.

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