NetCo

The active network services business has undergone a significant transformation in recent years. What was once a minor business line maintained only due to regulatory requirements has now become a high-interest revenue source.

This shift has been driven by the growing demand for FTTH services, the opportunities market segmentation offers to improve the financial structure of traditional operators, and the investment needs for deploying new networks.

Beyond traditional wholesale services for MVNOs, the development of these business models varies across countries, depending on the penetration of Fiber-to-the-Home services and the maturity of the telecommunications sector, which is opening doors to new service players (ServCos). In some regions, we are witnessing the splitting of traditional companies, separating their wholesale business lines and bringing in investors to fund new network deployments. In more consolidated regions, the market is entering phases of consolidation with significant M&A operations, either by volume or number of transactions.

Challenges

Based on our market experience, here are some of the main challenges NetCos face on their businesses:

• Need to increase revenue: NetCos, especially in the FTTH domain, are experiencing lower-than-expected utilization (take-up) rates of their networks. It is therefore necessary to explore new market strategies, aiming to sell more services to existing ISPs or target different client profiles in the B2B2C or B2B domain.
• Improving operational efficiency: Competitiveness in the telecoms market applies to all business models, and in order to maximize results and return on investment there must be a focus on operational efficiency: achieving the same results at lower costs, in less time, while maintaining quality. Reducing operational costs directly impacts profitability.
• Analysis and integration of new networks: As the NetCo market matures, network acquisition operations represent one of the most common growth strategies, and due diligence of these networks is crucial in purchase processes. 

Solutions

These are some of the solutions we offer at Optare that have already helped many of our clients:

• Catalog-Based Service Order Management: Service orchestration is one of the key elements within operational support systems and process automation. Optare Solutions brings over 20 years of experience in optimizing and designing these processes, as well as implementing solutions from both our partners and proprietary assets-based solutions built over the years.
• Field Service Management: Efficient management of field service agents and new network deployments can significantly save on service deployment costs and improve quality perceived by the customer, both in wholesale/NetCo and retail/ServCo models. Optare offers some of the best solutions on the market, with extensive experience in their implementation.
• API-Based Network Services: The core of neutral network service delivery lies in automated and robust management of orders from customers/ISPs. The optimization and standardization of processes and APIs have a direct impact on time-to-market and service quality. Optare Solutions has been participating in projects for designing, standardizing, and implementing network service integration interfaces for over 10 years.
• Footprint and Address Management: Reliable footprint data is essential for network investment and deployment phases, as well as for management, commercialization, and reporting. This helps to increase take-up rates, improve quality, and optimize costs in FTTH NetCo business models. We provide solutions specifically designed for these use cases, capable of transforming the way footprint, and serviceable households are managed.
• Wholesale Service Assurance: Post-sale issue management is just as important, if not more so, for a NetCo than for a ServCo. However, tools must be tailored to the NetCo business model. API integration for incident management processes with ISPs and designing efficient processes, facilitate resolution and are critical for subsequent automation towards close-loop operations. With our partners and expertise in the NetCo market, we've helped clients automate these processes in several cases.
• Network Assurance: While the current trend ties Network Assurance tools to network operations (NOC) contracts, Optare believes it's crucial for clients to own the data, information, and tools that enable operational process automation, independent of the service provider managing it. In collaboration with our partners, Optare Solutions has the expertise and tools needed to implement Network Assurance solutions covering monitoring, reporting, performance, and automation needs (leveraging ML and AI).
• Close-loop automation: One of the main goals of operational process automation is achieving a fully automated cycle where incidents are diagnosed and solved across all OSS domains. By combining tools like Catalog-Based Service Order Management with assurance capabilities (both network and service), these objectives can be achieved. At Optare Solutions, we collaborate with our clients to redesign and adapt processes for automation and implement the necessary tools to achieve this goal.
• Telecom-as-a-Service Solution: As part of their strategy to diversify business lines and generate additional revenue, NetCos are exploring Telecom-as-a-Service models, offering complete connectivity services to non-telco clients to help increase network take-up rates. With Optare Solutions' experience in designing and implementing processes and tools, alongside service delivery standards such as OpenGateway, we help our clients launch these services.