OSS Telecom Technology is an exciting Bend, Oregon based offshoot of OSS Telecom Technology Taiwan, a £300 million steel conglomerate. The main company was formed to pursue opportunities in operations support systems (OSS) in the telecom software industry. The company has enjoyed a solid base of 24 telecom operators utilizing their software.
OSS Telecom Technology will pursue several objectives that will allow them to quickly gain market penetration. The first objective is to offer a high value, high quality product for the telecom industry. Also important from an internal operation standpoint is the ability to develop superior human assets through training and competitive incentives. Lastly, OSS Telecom Technology will pursue a customer intimacy model. The pursuit of this specific business model will ensure complete satisfaction of their customers.
OSS Telecom Technology has a diverse OSS-based repertoire of products to support the telecom industry. Their first product is CARIBOU, a subscriber billing software solution. Within the CARIBOU package, traffic processing, bill generation, accounts payable, system administration, packaging, and customer care and administration are addressed. Each module within CARIBOU is its own robust application.
OSS Telecom Technology also offers their MEDUSA product. The MEDUSA product provides network support in the form of configuration, control, and management of network elements.
The market potential is huge for OSS Telecom Technology's products, evidenced by what appears to be the unstoppable growth of the telecom industry is quite promising. Currently, the telecom industry is the strongest growth industry and is responsible for huge gains in the capital markets. The proliferation of cell phones, as just one subset of the telecom industry is increasing at rates which at one time were unimaginable. One illustrative example is that it is forecasted that within two years 65% of children from the age of 10-15 will have cell phones. Broadband Internet service is also forecasted to achieve record penetration. Within three years it is expected that 85% of the population will have access to some sort of broadband connection with 60% of that group subscribing.
OSS Telecom Technology will target two market segments. The first is Tier 2 telecom operators. This segment has an 8% annual growth rate and 481 potential customer. The second targeted market segment will be Tier 3 telecom operators. While the annual growth rate of this segment is less at 6%, there are more potential customers, 2,011.
OSS Telecom Technology has put together an experienced management team to lead the organization through this dynamic industry. The assembled team was chosen to a large degree on the experience that they had within the industry. The telecom industry is quite technical and comprehensive information and insight of this unique sector is instrumental for success. Victor Smith has been brought in as CEO. Victor has 25 years of telecom experience. The last 12 years Victor has severed as COO of Atlas Telecom, a major player. OSS has another Atlas Telecom executive in the person of Kenneth Jones. Kenneth is the Executive Vice President and has also served with the NCR Corporation and Harris Corp. Kenneth worked on a large variety of projects at these companies and brings a strong skill set to OSS Telecom Technology. James Jackson is also an Executive Vice President with experience from IBM, Atlas, Mosaics and the Lotus Development Corporation. Rounding out the management team is Ken Smith with topical experience from MIDCOM Communications and US Intelio Networks.
OSS Telecom Technology, leveraging their strong management team and their superior product offerings will reach the Break-even point in year two. After a Net Loss in year one, Net Profit will become positive at the end of year two, but will leap up in year three. Sales for OSS Telecom Technology is forecasted to be moderate in year one and see a hefty increase again by the end of year three.
OSS Telecom Technology's operating model is designed to meet our goals which include:
Developing OSS solutions for telecom operations.
Bringing high value, high quality products to market.
Developing human assets through training and competitive incentives.
Practicing a customer intimacy business model.
Our mission is to be the provider of high value, high quality, convergent OSS solutions to telecom operators worldwide. These scalable solutions will have unparalleled support to ensure flexibility and to meet--and exceed--customer expectations.
1.3 Keys to Success
In order to achieve its mission, OSS Telecom Technology has made a set of clear and distinctive strategic choices. These choices have been developed based on two key factors:
The OSS marketplace
The company's capabilities
These choices translate into key strategic imperatives which OSS Telecom Technology is pursuing to gain leadership in the OSS market. There are three levels of operators within the telecom market. Tier 1 are operators with a subscriber base above one million, Tier 2 are operators with a subscriber base between 100,000 and one million, and Tier 3 operators are those with less than 100,000 subscribers.
Value focus: OSS Telecom Technology will focus on Tier 3 operators, providing full featured, scalable, and reliable products and service at competitive prices. The lifecycle price of OSS Telecom Technology's software products will be 20-40% below Tier 1 competitors such as LHS and Kenan, but will still possess all the features and services offered by these players. Tier 3 competitors, such as Moscom, while lower on price, will not be able to compete with the features and service OSS Telecom Technology offers.
Wireline and Wireless Product Portfolio: OSS Telecom Technology's product offering will evolve from Global Systems for Mobile Communications (GSM) to include other wireless, fixed, and Internet billing solutions. While initial products were GSM-based, OSS Telecom Technology is already broadening its product lines to include local loop billing and convergent billing capabilities, which are key customer requirements.
Engineering Center of Excellence: OSS Telecom Technology will continue to develop its low cost, high quality software development and programming center in Taiwan, which provides significant cost advantages over U.S. and Europe-based competitors.
Consulting Services: OSS Telecom Technology will combine consulting services with products to develop strong customer relationships and advance its product offerings. The provision of consulting services will allow a more customized, relationship-driven approach to our customers. OSS Telecom Technology will pursue those projects which can be made into products and marketed to other potential customers. OSS Telecom Technology will employ strict criteria to determine which consulting services projects it undertakes. Unless there is an opportunity to "productize" or repeat the solution being developed, the project will not be pursued.
Sales Channels: A multi-national marketing and sales team will build both direct and indirect sales channels. In order to capitalize on the opportunities in each geographic region, OSS Telecom Technology has put into place a network of on-the-ground, experienced, and incentivized sales and marketing personnel. These teams will build both direct customer relationships and indirect channels (through systems integrators, switch manufacturers, etc.). The indirect channel partners will give OSS Telecom Technology critical leverage. OSS Telecom Technology will allocate resources to building its partnerships with indirect sales channels. Partners such as Compaq will allow OSS Telecom Technology to gain geographic reach, credibility, and customers which would not otherwise be possible. Specific partner support programs will be put into place to ensure cultivation of these partnerships.