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May 13, 2004
CBOSS ready for Indian summer

Geetanjali Wadhwa & Pradeep Chakraborty

MOSCOW, RUSSIA -- Founded in 1996, CBOSS Association is an innovation-driven provider of IT solutions for telecom. It has 730+ installations in 18 countries worldwide. The subscriber base served by CBOSS technologies counts 40+ million and is constantly growing. The Association focuses on the development of integrated, scalable solutions for telecom enterprises. In 2003, Hewlett-Packard and Sun Microsystems performed benchmark tests of Convergent Business Operation Support System (CBOSS). The solution showed outstanding performance when backing communications of 25 million subscribers on both deployment platforms. This far exceeds the needs of the majority operators today.

CBOSS also benefits from partnerships with global leaders such as Hewlett-Packard, Oracle, Sun, Excel Switching, Hitachi Data, Intel, Brooktrout, Avaya, Microsoft and Xerox. For three years running, CBOSS received the best Oracle ISV award in Russia as well.

Convergence plus recently met up with Andrey Morozov, who is the President and CEO, CBOSS Association. With an analytical mathematics background, Morozov worked at government-oriented information systems before 1992, when he joined the first mobile carrier in Moscow (Moscow Cellular Communications, MCC). Having started as a leading programmer and gradually promoted to R&D department manager, he was guiding the in-house development of the MCC billing system. Subsequently, Morozov became one of the founders of the CBOSS company. In many respects thanks to him, a small CBOSS enterprise turned into the first-rate international provider of IT solutions for telecom business. Excerpts from an interview:

Convergence plus: Please elaborate on CBoss's activities, including your various partnerships?

Andrey Morozov:
With 2000 employees and 44 products CBOSS Association is an innovation-driven international provider of IT solutions for telecom. CBOSS's main products are convergent prepaid and postpaid billing and customer care, intelligent services, analytical systems, Internet solutions, and more. Founded in 1996, CBOSS implemented 730+ installations for telecom operators, servicing in sum 40 million subscribers in 18 countries on four continents, and takes pride in having 140 customers around the globe. In Russia and CIS, CBOSS is an undisputed leader in OSS/BSS sector at the same time topping the list of all Russian software developers.

The company's strategy is to generate premium-quality, integrated "turnkey" solutions. Its alliances with internationally renowned firms positions CBOSS as a pre-eminent systems integrator. We cannot underestimate partnerships with other IT-market players in our business, where integration and universality of technologies play the most significant role. In this sense, multi-vendor collaboration is not only means to gain access to customers, but the only way to success. Offering the complex, flexible and -- in the true sense of the word -- universal solutions, CBOSS is working closely with other vendors as Hewlett-Packard, Oracle, Sun Microsystems, Excel Switching Corp., Hitachi Data Systems, Intel, Brooktrout, Avaya, Microsoft, Xerox and others. These partnerships have brought us success, and we obtained a status of "honor partner" by these companies. Obviously, they profit from it as well. For example, we recently signed a bilateral OEM agreement with HP, according to which its equipment will become the platform for CBOSSrtb, our flagship solution positioned for telecom enterprises. HP will render comprehensive support to solutions provided by CBOSS. This is the highest level of HP's strategic partnership. Earlier, Alcatel, Nokia and Motorola signed similar agreements with HP.

CP: You recently obtained several new customers in Europe and Asia. Please elaborate on these wins?

AM:
During 2003/2004, we negotiated some important contracts with foreign customers. These include the supply of our solutions to carriers from Norway (Teletopia Mobile Communications), Jordan (XPress Telecommunication), Laos (Lao Telecommunications and Lao-Asia Telecom State Enterprise). The strategic acquisition of online billing solutions (OBS) from Fujitsu Services was extremely beneficial for us. This deal opens more than a window to Europe, rather a doorway to the world for CBOSS. It positions the Association as a world class IT provider. CBOSS's products are used by 140 companies across four continents, including operators such as O2 (the UK), MTS (Russia), TeliaSonera (Finland), Optus (Australia), ROGERS (Canada), Azercell Telecom J.V. (Azerbaijan), ONE GmbH (Austria), and COLOMBIA MOVIL (Columbia). A special diploma was awarded at the 3GSM Congress to this Columbian company, acknowledging it as the most fast-growing operator. Among CBOSS customers are Kar-Tel (Kazakhstan), Yuzhno-Uralskiy Sotoviy Telefon, NSS, Volgograd-GSM, New Telephone Company (Russia), Voxtel S.A. (Moldova), SMARTS and Enisey-Telecom (Russia). The total subscriber base, served by CBOSS solutions, tops 40 million.

Due to the OBS acquisition, CBOSS obtained a perfect base in Finland for economic expansion in the foreign markets. New assets include highly qualified employees, the infrastructure required for further operations and all intellectual property rights. CBOSS inherited the successful development and implementation experience of real-time billing, known on the global market under the rtBilling brand. Successful operation at large telecom enterprises, including configuration for 10 million active subscribers, proven reliability and supreme functionality of the solution. The product extends the high-end CBOSS solutions line in the segment of scalable high-performance prepaid systems and will ship under CBOSSrtb name, preserving, however, its rtBilling brand as well. Our Association profits from the access to the new market segment, namely, that of high-end prepaid systems. The deepening of our collaboration with HP is also an important consequence. HP plays an essential role in promoting rtBilling, as a system integrator, equipment supplier, and professional service provider.

Besides, I must mention that there has been a significant enhancement in CBOSS's prestige by the winning the tender, in which some serious players of our market have participated and which made strict demands on the competitors.

CP: What is your focus for the Asia Pacific region? How do you see yourself going forward?

AM:
The Asia Pacific region is of a particular interest for our Association. Co-operation and partnership with the businesses in this region is one of the priority directions of CBOSS. As a growing ICT market, Asia Pacific has a great development potential and we have multiple options to offer here. We plan to increase our presence in Asia Pacific and are optimistic about acquiring new customers. This strategy comprises an increased sales activity in the region, entering into new partnering arrangements with local market players, including outsourcing, financial and technological investments, and active participation in Asia Pacific conferences and exhibitions. Our delegation recently took part in Elitex 2004, New Delhi.

CP: How do you perceive the Indian telecom market and what is your strategy going to be?

AM: The Indian IT and telecom market is rapidly moving toward new technologies. However, there are some temporary difficulties. What we see in India is an increasing potential subscriber base, demand for more complex telecom services, and emerging new market sectors requiring telecom solutions on the one hand, and a certain lack of operating carriers, sufficient infrastructure and technologies suitable to the demands on the other hand. However, the dynamics of development of this market stuns the ICT specialists.

Taking into consideration the fact that current telecom problems don't remain unnoticed by the authorities and governmental structures of India, I'm sure that in closest future we must expect fast growth of the local telecom market and as a result extension of the telecom services coverage area and gradual improvement of their quality. Offering state-of-the-art and approved solutions and having experience of successful co-operation with different operators, CBOSS Association is ready to play some significant role in this development.

CP: How do you perceive the billing and customer care market in Asia and specifically, India?

AM: Currently, it is the fastest-growing OSS/BSS market in the world. India, with its huge territory and large population, appears to be the country where the progress of the ICT market will be the most significant. According to a Gartner Report, the Indian telecom services market will touch GBP10 billion by 2006, and the cellular segment is likely to be the key growth driver. Taking into the consideration the will of the Indian government to push forward the ICT sector, proved by recent merging of the IT and telecom ministries to speed up reforms and tabling the important bills regarding telecoms in the Parliament, issuing new carrier licenses, and maintaining the lowest prices for mobile services in the world, we must really expect progressive growth of Indian billing and customer care market. However, there are still lots of things to do. With just 43 million basic phone lines and approximately 30 million cellular subscribers, the Indian OSS/BSS market requires more investments, more technologies and more market players. I suppose, we must expect the entrance of new carriers in the ICT market. This will, on the one hand, help cover more market segments and noticeably increase the number of subscribers in Indian telecom services. On the other hand, it should strengthen competition, thus improving quality of services and diversifying them. CBOSS comes to India fully realising the difficulties the carriers face and should be able to solve them.

CP: Today the OSS/BSS problem domain suffers from a barrage of demands and requires great flexibility and reaction time? What are these problems and how are you addressing those?

AM:
The ICT and specifically OSS/BSS is a dynamic business. The demands are rapidly growing, the technologies are dramatically changing, and the competition is getting extremely tough. Operating within multiple standards and offering diversified services, modern carriers require convergent solutions able to suit literally any need of the subscriber. A developer must be able to say so to get involved in these needs, to feel both as an operator and as an end-user. Only this approach can lead an ISV to success. That's the main issue the OSS/BSS developers face.

Of course, it is not easy to survive and grow in our business sector. Facing tough competition in a fast-paced environment, the only way to success is a flexible policy. This includes:

  • Working with the intellectual capital within the company. CBOSS devotes a lot of attention to it and has developed a special human resources system, which allows us to optimally use the intellectual potential of the employees;
  • Convergent and complex technologies that are able to meet any market requirements and change rapidly; and
  • Active collaboration with other vendors and search for new business and technology partners.

This approach will bring us success in the future, as it did before. The market situation seems to be quite favorable. Our segment grows fast, technologies progress and their value grows as well. Carriers are looking for modern solutions and we are ready to provide them.

CP: How appealing are pay-as-you-go solutions with telcos vis-a-vis the traditional, license-fee based offerings?

AM:
We are extremely flexible in pricing models and have multiple examples of successful collaboration with carriers within totally different schemes of investments in IT. Being a developer of billing systems that allow using different tariff models we realise that tariff flexibility can be a great marketing tool. We use this knowledge in managing our relationships with customers offering multiple choices for them. Although we are not a telecom carrier, we use our own billing system for settlements with our customers. This allows us to automate using different models. As far as the carriers' preferences are concerned, they are varied. In fact they are as varied, as those of their subscribers.

CP: What is your roadmap going to be like over the next couple of years?

AM:
To my mind, we must expect new contracts, new markets, new technologies and new implementation spheres for us. Our products will eventually be called for not only by telecoms sector. This offers fantastic challenges, and we are eager to accept them.

Contact:
CBOSS

Tel: +7-95-755-5655
Fax:+7-95-974-6388
www.cbossbilling.com












Andrey Morozov, President and CEO, CBOSS.

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