Reference architecture of modern telecom operators

A modern telecom operator addresses 3 business challenges successfully on an architecture level:
1.) To provide a delightful, omnichannel customer experience.
2.) To enable adjacent businesses and ecosystems.
3.) To unlock the full potential of data.
The following architecture blueprint ticks all the checkboxes: Download PDF

The key concept in this architecture is the Digital-Legacy Decoupling. It hides from the channels and integrated 3rd party ecosystem players the complexity, inflexibility, and limitations of legacy systems and monoliths of the telecom operator. It creates a performant, simple-to-use, modular API layer on top of the Business Support Systems, Operations Supports Systems, and Enterprise Systems so that the digital channels can create a digital experience where the customer is in the center.

1.) System-Of-Engagement

- Impersonation & Customer 360 on the Web for Store, Call Center, Franchise: Impersonation refers to the ability of Call Center agents and retail staff to impersonate the identity of customers, allowing them to view and access customer accounts and self-care functions as if they were the customers themselves. In other words, the customers’ self-care web UI is re-used as Call Center agents and retail staff web UI.

- Superapp: offers a wide range of services and features within a single mobile app by leveraging 3rd party ecosystem players, such as Loyalty, Digital Wallet, Over-The-Top Content Streaming, Insurance, IoT, Smart Metering, Smart Home, Home Cleaning, Groceries, Food Delivery, Ride-Hailing, BNPL, Utility Bill Payment, etc. The telecom service self-care capabilities can be in a separate mobile app or within the superapp.

- Virtual Call Center Agent: it is an artificial intelligence-powered agent that uses AI technologies to handle customer interactions and provide support over the phone. It can understand and respond to customer inquiries, provide information, enable payments and plan changes, offer personalized recommendations, track orders/services, deliver targeted promotions, assist with technical troubleshooting, and provide real-time data usage information. It relies on NLP, Text-To-Speech, and Conversational AI / Chatbot capabilities.

2.) Digital Experience Platform

- eCommerce: enables customers to browse available services and products, select the ones they want to purchase, and complete the transaction using a secure payment gateway. It has headless APIs, and its key capabilities are Commercial Catalogue, Cart Management, Order Capture, and Checkout.

- CMS (Content Management System): it is back end-only web content management system that acts primarily as a content repository. A headless CMS makes content accessible via an API for display on any channel (web, mobile app), without a built-in front end or presentation layer. It includes or integrates with a DAM (Digital Asset Management) and a CDN (Content Delivery Network).

- Search: provides fast and relevant search functionality, including search indexing, near real-time updates, typo tolerance, language support, full-text search, custom ranking, and filtering. It allows developers to integrate powerful search capabilities into applications easily.

- Personalization Engine: enables the operator to deliver personalized experiences, conduct A/B testing, automate personalization, target users based on behavior, and provide recommendations. It helps businesses increase engagement, eCommerce conversion rates, and customer satisfaction by delivering relevant and tailored experiences to their audience.

3.) Digital Identity & Conversational AI

- Customer IAM (Customer Identity & Access Management): ensures that the right users have the appropriate access to technology resources. Registering, identifying, authenticating, and controlling customers, 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.

- NLP (Natural Language Processing): enables speech recognition, sentiment analysis, intent recognition, and language detection. Intent recognition powers Virtual Call Center Agents to automate self-service options.

- Text To Speech: converts written text into audio output. It utilizes advanced algorithms and artificial intelligence to generate synthetic speech that closely resembles human speech patterns and intonations. Text To Speech powers Virtual Call Center Agents to automate self-service options.

- Rule Engine: it stores and processes data to execute the business rules that business users 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.

- Chatbot: provides instant customer support via Whatsapp, Facebook Chat, or other channels. It enables self-service tasks like bill payments and plan changes, offers personalized recommendations, track orders/services, deliver targeted promotions, assist with technical troubleshooting, and provide real-time data usage information, enhancing customer experiences and operational efficiency.

- Social Engagement: provides features like social media listening, sentiment analysis, interaction management, engagement analytics, content management, and advertising management on various social platforms. It is part of CRM or integrated with CRM. The 360 Customer View must have some sort of Social Engagement.

4.) Adjacent Businesses

- 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.

- Digital Wallet: enables customers to make cashless transactions (payments, transfers), track their expenses, manage their credit cards & other payment methods, and provides a seamless and secure payment experience in an ecosystem where the telecom operator is one party out of multiple parties.

- 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.

- Other: 3rd party or in-house systems for other revenue-generating businesses, such as Insurance, IoT, Smart Metering, Smart Home, Home Cleaning, Groceries, Food Delivery, Ride-Hailing, BNPL, Utility Bill Payment, etc.

5.) Retail & Call Center Toolkit

- 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.

- 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.) Digital-Legacy Decoupling

- Data in Replica Data Master: the replica of the CRM, Billing, Technical Product Catalogue, or other Business Support Systems’ database. It can be an exact copy of the data, or it can be a transformed version of the data in a canonical data model. Its key benefit is to offload the source database from the traffic coming from digital channels and to enable quick response time and scalability for a high number of transactions. Not every table needs to be in the replica, the frequently retrieved data entities are the desired records. It can be near real-time or real-time leveraging CDC (Change Data Capture), ETL (Extract-Transform-Load), or Events Streaming.

- Microservice in Replica Data Master: it hides from the channels and integrated 3rd party ecosystem players the complexity, inflexibility, and limitations of legacy systems and monoliths. Microservices can read data from the Replica Data Master in an easy and performant way. The Microservices are organized per data entity. Microservices cannot insert/update/delete directly in the Replica Data Master, those operations need to go through the Insert/Update/Delete Handler.

- Insert / Update / Delete Handler: it handles the complexity of transforming the data model used by digital channels to the data model used by legacy systems. It also performs complex orchestration to ensure data accuracy and consistency, based on source-to-target field mapping and other rules. In other words, the sequence of data updates is the following:
1. Initiate a change on System-of-Engagement
2. Call a Microservice in Replica Data Master
3. Run the Insert/Update/Delete Handler
4. Update a Source System
5. Proceed with CDC / ETL / Events Streaming
6. Replica Data Master reflects the data change

7.) Analytics

- Data Platform: unified data, analytics, and AI platform to manage every stage of the data lifecycle, including databases, data warehouses, data lakes, streaming, AI, and ML.

- 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.

- DPI (Deep Packet Inspection): it is a network analysis technique used to inspect the content and header of data packets as they pass through the network infrastructure. It helps to optimize network performance and it enables innovative mobile plans (for example N GB data allowance with unlimited Instagram usage). DPI raises privacy concerns, its implementation must comply with applicable laws and regulations while safeguarding user privacy.

- CEP (Complex Event Processing: it analyzes a large volume of data in real-time to identify meaningful patterns, correlations, and actionable insights. It enables operators to build context-driven marketing, for example, the customer just made 5 international calls in the last 1 hour, so he/she immediately receives an upselling SMS promotion for an add-on to get N hours of an international call.

8.) 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.

- ETL: 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.

9.) ERP

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

- HR 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.

10.) 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.

11.) Decisioning, Campaign & Gateways

- Decisioning, AI, Machine Learning, Adaptive & Predictive Models: it manages complex decision-making processes, such as inbound Next Best Action (upselling when a customer calls the Call Center or visits the store) outbound Next Best Action (upselling with a personalized promotional campaign in SMS or email), and personalized service recommendations. It combines rule-based logic, data-driven insights, Machine Learning, Predictive Analytics, and Adaptive Analytics to make intelligent and automated decisions that align with business objectives and customer needs.

- 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.

12.) 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.

- Employee IAM (Employee Identity & Access Management): ensures that the right users have the appropriate access to technology resources. Registering, identifying, authenticating, and controlling employees, 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.

13.) 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. The key TPC database tables should be in the Replica Data Master.

- 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.

14.) 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.

15.) 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: 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

16.) CRM, Billing & Revenue Management

- 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. The key CRM database tables should be in the Replica Data Master.

- Rating: receives input data from network elements, Mediation, and uses predefined rules and tariff plans to calculate the charges for each customer. These charges are then passed on to Convergent Billing & Charging 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.

- Convergent Billing & Charging: enables common revenue management of all services and all users. It convergences the payment methods (Prepaid, Postpaid), as well as the service types (landline phone, mobile phone, data, TV, etc.). Historically each of these services was supported by a different system. Convergent Billing & Charging enables customers to have a base Postpaid plan with a fixed monthly fee, while also offering Prepaid add-ons for additional services (Hybrid plan). It also allows the customer to have a single bill for all telecommunications services.

- 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.

Whether the ambition of the operator is to explore adjacent growth or to delight customers with impeccable digital experiences, this architecture blueprint can fuel the business objectives.

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