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From legacy to leadership: How Telcos can modernize OSS/BSS for sustainable success

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9 minute read 26 Mar 2026

Organizations can transform OSS/BSS systems for more agile, innovative and profitable operations.

In brief
  • Telcos face significant risks from outdated OSS/BSS platforms, hindering their ability to innovate and monetize 5G investments.
  • A comprehensive modernization strategy is essential to integrate technology, culture, and operations for sustainable growth.
  • Implementing a FinOps-for-networks model helps balance innovation with cost management to promote maximum business value.
  • Breaking down monolithic BSS systems into microservices architecture—API-driven, with an open ecosystem and increased interoperability.

Across industries, technology debt — the accumulation of legacy, siloed and suboptimal IT and network infrastructures — has become a material strategic and operational risk, hindering digital transformation and innovation. For telcos, this challenge is particularly acute.

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Operations support systems (OSS) and business support systems (BSS) platforms, originally designed for simple plans and basic network functions, have evolved into complex and expansive ecosystems requiring supporting an elastic network — dynamic service provisioning, real-time charging, automated network orchestration, automated fault repairs, multichannel customer engagement and seamless partner integration . 

Telcos see legacy IT as a major roadblock to innovation

Source: EY CEO Outlook Pulse, news articles


This complexity is further exacerbated by the need to effectively monetize capital-intensive network investments. In the highly commoditized and low-margin landscapes of 5G and wireline broadband markets, it is essential to support cost-effective and fast innovation.

5G revenue growth remains elusive 

The rollout of 5G represents a significant investment for telcos. However, the anticipated revenues have been slow to materialize. Unlike previous technology cycles, where a single application such as mobile broadband or SMS drove adoption, 5G monetization necessitates a diversified, multi-dimensional product strategy emphasizing enterprise verticals and specialized service offerings .

Source: "5G Infrastructure Costs," Patent PC

Source: 5G Monetization Survey, Nokia


The transition to 5G-Standalone and the evolution toward 5G-Advanced standards as well as advanced capabilities of wireline broadband networks can unlock new revenue streams by empowering telcos to deliver insights, experiences and solutions beyond just improved connectivity. This requires development of innovative business cases delivering tangible business outcomes across verticals like Industry 4.0, autonomous vehicles, smart cities and immersive media, which ring together the power of data, network and fit-for-purpose solutions developed by the telco in partnership with ecosystem players. 

Delivering these at scale necessitates fully modernized OSS/BSS systems that support partner integrations, elevate the value of connectivity and bring together the value of network and insights in a high-value solution. Without this approach, telcos risk repeating the mistakes of early 5G rollouts, where network capabilities outpaced monetization strategies.

Wireline broadband: breaking beyond the speed race

The wireline broadband business — a core revenue stream for many telcos — faces significant monetization challenges, too. Speed has long been the primary differentiator, but extensive fiber deployments and market commoditization are yielding diminishing returns. Additionally, fiber expansion is highly capital-intensive . 

Source: "The Fiber revolution: Beyond Infrastructure", ZIRA


Still, customers increasingly view broadband as a utility rather than a premium service, further eroding telcos’ pricing power . 

Source: EY Digital Home Survey, 2024


Compounding this issue is the reliance on legacy OSS/BSS systems using siloed processes and fragmented data management systems that hinder innovation and flexibility. These systems struggle to support the dynamic, service-led models required today. Emerging enterprise needs demand dynamic capabilities such as AI-driven network analytics, automated service orchestration and integrated offerings spanning cybersecurity, IoT enablement, SD-WAN and edge computing. Without modernized platforms, telcos risk missing critical opportunities to deliver differentiated, high-value business services.

To remain competitive and unlock new revenue streams, wireline telcos must modernize their OSS/BSS for agile service orchestration, real-time policy and charging, personalized product bundling, and AI-based customer experience management. Without these upgrades, the transition from bandwidth-centric propositions to differentiated solution-based models will likely remain slow, inefficient, unattractive and financially constrained.

The modernization imperative for future telco growth

Considering the evolving dynamics within wireless and wireline space, mitigating technology debt through OSS/BSS modernization is foundational for future competitiveness. This paves the way for a focused discussion on key considerations for OSS/BSS modernization, enabling telcos to capitalize on digital transformation .

Telcos recognize the need for OSS/BSS transformation

Source: 5G Monetization: operation imperatives, TM Forum


Driving OSS/BSS modernization: key strategies for success

In addition to technical upgrades, successful transformation requires architectural flexibility, ecosystem integration, real-time customer engagement and future-ready talent working in different ways.

Key considerations in OSS/BSS modernization

Microservices for faster, seamless upgradesAdopting microservices architecture in BSS can enable 99.99% system availability while reducing time-to-market for new services by 60%
Hybrid approach to OSS/BSS57% telcos (N=118) have a hybrid cloud approach for cloud migration of OSS/BSS, ensuring a balanced approach between on-premises and public cloud
Intent-based automation70% telco executives (N=56) consider their use of AI in OSS/BSS as mature; ~62% expect Gen AI to significantly impact OSS/BSS within two years
API-enabled connectivity71% telcos (N=200) deem Open API compliance as essential during BSS procurement to facilitate seamless integration with third-party systems and applications
Tailor-made customer experiences79% telcos (N=80) are expected to increase spending on customer experience functions within BSS; 56% will increase spending on CRM
Talent and culture alignment75% (N=30) of telco leaders identify availability of skilled resources as important for the successful delivery of operational performance programs

Source: Omdia, TM Forum, EY Insights analysis

Equally important is fostering a culture of agile, cross-functional collaboration to break down operational silos. This change requires strong, top-down leadership to champion modernization initiatives, align organizational priorities and cultivate learning-focused, digital-first mindsets. 

Navigating OSS/BSS transformation hurdles

Telcos face complex challenges beyond system integration. To unlock new revenue streams and ensure future-readiness, they must navigate deep-rooted technical constraints and organizational barriers .

Challenges in OSS/BSS modernization

Source: EY Insights analysis


360o approach as the way forward

Mitigating technology debt requires a comprehensive (i.e., 360o) approach integrating technology modernization with organizational and cultural transformation, driven by clear business goals. 

Telcos must adopt agile practices for enhanced responsiveness, pursue holistic tech transformation to modernize systems, and leverage open ecosystems for collaboration and innovation. A robust change management strategy is essential for navigating transitions, while building digital talent capabilities ensures sustainable success. Emphasizing FinOps-for-networks aligns financial and operational strategies, supporting the overall transformation journey .

360o approach to mitigate telcos' tech debt

Source: EY Insights analysis


Adopting agile principles across business and operations

Agile methods prioritize collaboration and adaptability, becoming standard in telco transformations. Cross-functional teams of network engineers, developers and analysts work in sprints to deliver incremental enhancements such as dynamic network slicing and real-time updates.

Source: Press articles


Agile transformations require shared accountability between business and IT, supported by automated software lifecycle management and investments in training and change management. By fostering real-time responsiveness, faster time-to-market and improved service quality, agile methodology is essential for future-ready, customer-centric operations. 

Holistic technology transformation instead of piecemeal upgrades

While telcos have invested in digital transformations, upgrading only select components of the technology stack without a clear business goal typically fails to deliver enterprise-wide value. The issue lies in fragmented execution, leading to disconnected systems and operational inefficiencies. 

Reasons for failure of piecemeal OSS/BSS upgrades

Inability to support next-gen business modelsFragmented systems & integration challengesSuboptimal customer experiences & limited agility

Piecemeal upgrades rely on legacy workflows and technologies, limiting support for real-time orchestration, dynamic policy control, and personalized offerings necessary for 5G/IoT services, thus hindering innovation and revenue growth.

Siloed process automation and legacy systems cause data inconsistencies, system incompatibilities, partial automation, and operational complexity, raising risks as 5G and IoT complexity grows.

Disconnected customer experience tools have not improved overall satisfaction due to poor network-data correlation and service reliability; high reliance on IT teams for changes and data access slows down decision-making and market responsiveness.

Source: EY Insights analysis

An end-to-end strategy — encompassing OSS/BSS, cloud-native infrastructure, AI-driven automation and digital service orchestration — is essential to address these gaps. Each technology change must be paired with process changes to avoid perpetuating legacy inefficiencies, ensuring that operational workflows evolve alongside new systems and maximize modernization benefits.

Adopting an open ecosystem approach

OSS/BSS modernization relies on open ecosystems, where disaggregated architectures and open APIs replace monolithic, vendor-locked systems. By integrating modular, interoperable platforms, telcos can enable real-time collaboration among network functions, OSS/BSS components and third-party applications. 

Key open source initiatives

Open Digital ArchitectureCAMARA ProjectLF Networking
  • ODA is a toolkit and set of processes and guidelines to plan, design, build and operate a cloud-native telco
  • It replaces traditional OSS/BSS with modular, cloud-native, functional components that telcos can plug into their own operations environments and manage autonomously
  • CAMARA is an open source project within Linux Foundation to define, develop and test the APIs
  • It democratizes access to network capabilities, streamlining integration with third-party apps and allowing telcos to participate more actively in the digital services ecosystem
  • LFN facilitates collaboration and operational excellence across open source networking projects, spanning SDN, NFV, and cloud networking
  • It integrates platforms such as ONAP, supporting a holistic ecosystem to enable rapid innovation and cross-platform interoperability

Source: EY Insights analysis

The benefits of open ecosystems extend beyond technology, with telcos reporting financial gains and strategic advantages such as customer retention, market leadership and enhanced brand reputation .

Open ecosystem benefits witnessed by leading telcos

Source: TM Forum


Change management strategy to minimize disruptions

Effective change management minimizes disruptions during OSS/BSS modernization and broader telecom transformations. 

Source: Press articles


It is crucial to define business objectives — such as revenue growth, cost reduction or improved NPS — for each milestone and establish clear KPIs for progress. Involving the right stakeholders from the outset and maintaining transparent communication throughout the process are equally important. 

Additionally, leveraging automation and AI-driven monitoring can proactively detect and resolve issues during transitions, reducing operational risk and ensuring service continuity.

People and culture transformation

For OSS/BSS transformation to succeed, telcos must prioritize workforce alignment alongside technology upgrades. A clear vision, empowered teams and targeted upskilling are essential for fostering a culture that adapts to evolving business needs .

How people and culture can drive OSS/BSS modernization

Source: "The future of transformation is human" - an EY report, EY Insights analysis


The significance of people and culture in OSS/BSS modernization is evident in key focus areas for telecom leaders. The EY Telco of Tomorrow (2024) survey emphasizes talent retention, upskilling, cross-functional collaboration and new ways of working, reinforcing the need for a deliberate, people-first transformation strategy .

People and culture are the key elements of telcos' people agenda'


FinOps-for-networks: balancing innovation, costs and business value

As telcos transition to agile, cloud-native and automated networks, the adoption of Self-X capabilities will propel telcos toward highly automated, API-driven network architectures that can dynamically scale and adapt in real time, enhancing operational efficiency and responsiveness to market demands.

Zero-X, Self-X vision of autonomous networks

Source: TM Forum, EY Insights analysis


Managing the costs of advanced capabilities can be challenging without a detailed plan. Organizational misalignment and difficulties in managing shared costs can hinder effective financial oversight. To address these challenges, it's essential to apply lessons learned from optimizing financial management in cloud environments to elastic networks .

EY's FinOps for telco networks

PMO: Present mode of operations, FMO: Future mode of operations


By adopting a robust FinOps-for-networks model, telcos can bridge the gap between customer needs and business value. Integrating automation and fostering cross-team collaboration enable continuous analysis of financial metrics. Additionally, optimizing telco services and offers along with enterprise business value considerations, ensures that network investments maximize business value while effectively addressing customer demands for new service activation, on-demand adjustments and outage thresholds.

Future-proofing telecom operations

As network complexity increases, addressing technology debt is essential for maintaining competitiveness. The EY organization supports telcos in navigating this complexity through a comprehensive approach that integrates network knowledge with that in cloud technology, finance, tax and risk management. By assisting at every stage — from value mapping and total cost of ownership analysis to optimizing cloud consumption and managing operational costs — the EY organization empowers informed decisions that balance innovation with financial discipline. Our cross-functional teams collaborate with business leaders to align technology investments with strategic priorities, address tax implications and enhance organizational capabilities, ensuring that modernization efforts deliver lasting business value and a sustainable competitive advantage.

Summary 

Telcos must modernize OSS/BSS to tackle technology debt and stay competitive. Embracing agile practices and FinOps strategies will unlock new revenue streams and enhance efficiency. 

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