IDC-Ericsson Report: Legacy OSS/BSS Systems Threaten Telco Growth as $211B Modernization Push Accelerates
According to IDC, legacy OSS/BSS platforms, many of which were designed for “yesterday’s network,” are struggling to support the agility, scale, and intelligence required by advanced 5G services, autonomous networks, and new monetization models.
A new industry report by International Data Corporation (IDC ), sponsored by Ericsson , has identified outdated legacy operations support systems (OSS) and business support systems (BSS) as one of the most significant barriers to telecom operators’ digital transformation and monetization ambitions. The study, Mapping the OSS/BSS Transformation Journey, released in June 2025, examines the lived experiences of Tier 1 communications service providers (CSPs) and offers a roadmap for evolving OSS/BSS infrastructure to meet the demands of modern telecom markets.
According to IDC, legacy OSS/BSS platforms, many of which were designed for “yesterday’s network,” are struggling to support the agility, scale, and intelligence required by advanced 5G services, autonomous networks, and new monetization models. This is hampering operators’ ability to unlock revenue from emerging use cases across industries such as manufacturing, healthcare, and financial services.
The report outlines five critical operational transformation pillars that CSPs must address:
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Data Management: Building unified data ecosystems with strong governance to eliminate silos and provide real-time, reliable insights for AI-driven operations.
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Artificial Intelligence: Scaling AI and generative AI across OSS/BSS to enable predictive insights, automated decision-making, and hyper-personalized customer experiences.
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Cloud and IT Modernization: Migrating to cloud-native architectures to ensure flexibility, scalability, and seamless integration across multi-cloud environments.
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Service Orchestration: Implementing intent-driven, end-to-end orchestration frameworks to manage complex, multi-domain services and accelerate service innovation.
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Monetization and Digital Experience: Creating unified customer views, modular architectures, and AI-enhanced monetization systems to improve engagement and reduce churn.
Key statistics from the research highlight the urgency of change:
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66% of operators say their data systems need additional investment within the next 12 months.
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62% believe AI and generative AI are essential to achieving their digital transformation goals.
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74% are investing in tools to improve customer experience, while 37% are shifting to new service revenue models.
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OSS/BSS-related capital expenditure is forecast to reach $211 billion globally between 2025 and 2028.
The report stresses that modernization is no longer optional but a strategic necessity. Operators that fail to overhaul their OSS/BSS risk falling behind as competitors embrace cloud-native platforms, AI-powered automation, and partner-driven ecosystems. IDC advises telcos to standardize architectures, prioritize business value in technology investments, and cultivate a culture of continuous innovation to remain competitive.
Ericsson, which co-developed the InfoBrief with IDC, underscored that OSS/BSS transformation is essential to enabling telcos to “sell, deliver, and get paid” in a future defined by autonomous networks, programmable connectivity, and experience-led growth.
