The document discusses a telco business model shifting from primarily offering a small number of popular products and services to large customer bases, to offering a significantly higher number of niche products and services each appealing to relatively small customer communities, known as the "long tail" business model. It notes managing the high number and variations of products under this model requires new capabilities around scalable product development, low production costs, easy search and purchase processes, and understandable pricing and billing.

1. Long tail Telco Business
Model
… Telekom BSS/OSS Requirements
09.02.2008
Tudásbánya Ltd.
2009.02.09 Long tail - OSS&BSS 1
Tudasbánya Kft

2. Business model change: from head to long tail
Head
Long Tail
Significantly higher number of products
Earlier each product had huge
evolved with significantly lower number of
customer base:
customers:
Voice: few million
-Content products: each content type has
SMS: over million
its own small user community
MMS: over half a million
etc. - Tariff packages with options: each option
has relatively small user community
2009.02.09 Long tail - OSS&BSS 2
Tudasbánya Kft

3. High number of products,
high number of variations of base products
Managing high number of products requires new capabilities:
1. Scalability of product development platform
(organization, processes, systems, etc.)
2. Low production cost
3. Low cost distribution
4. Easy search, find, configure and try for sales staff and for
customers
5. Easy buy process
6. Easy to understand pricing, billing, payment
2009.02.09 Long tail - OSS&BSS 3
Tudasbánya Kft

4. 1. Scalability of product development platform
Organization, processes and systems should be able to scale to
launch few dozen products to launch few hundred products
•Is your product approval process able to handle it?
•Is your product design process able to handle it?
•Is your OSS/BSS able to handle it?
2009.02.09 Long tail - OSS&BSS 4
Tudasbánya Kft

5. 2. Low production cost
2009.02.09 Long tail - OSS&BSS 5
Tudasbánya Kft