Accelerating digital monetization: making the case for agile commerce layers in telecom

Telecommunications are in the midst of a major transformation.

Communications Service Providers (CSPs) are evolving from traditional voice and data providers into Digital Service Providers (DSPs), offering IoT solutions, curated streaming bundles, advanced value-added services, and edge computing. This shift unlocks tremendous new revenue potential, but also presents a key challenge: monetizing digital services at the speed of innovation while maintaining the reliability telecoms are known for.

The dual-s imperative: operating two business models on one infrastructure

CSPs must now run two fundamentally different business models, traditional connectivity and digital services, on a single infrastructure. These models demand vastly different levels of speed, flexibility, and operational agility, yet most CSPs still depend on legacy Business Support Systems (BSS) designed for an earlier era.

Today’s providers aren’t just connecting people - they’re powering entire digital ecosystems across B2C, B2B, and B2B2X models. From entertainment and gaming to fintech, IoT, and 5G enterprise platforms, success now depends on seamless digital experiences, rapid innovation, and collaborative partner ecosystems. In this environment, competition is defined not by coverage maps or call quality, but by agility and innovation velocity.

The bottleneck: traditional BSS

Legacy BSS platforms were built for billing accuracy, not business agility. Engineered for static pricing and limited service catalogs, they struggle to keep pace with today’s dynamic, cross-domain business models.

The result is rigidity that shows up as:

● Overly complex: extensive configuration changes are required even for simple updates, making systems slow and inflexible.

● Slow to adapt: launching new digital services often takes three to six months due to complex dependencies and testing requirements.

● Integration challenged: onboarding B2B2X partners or third-party platforms demands custom development, creating operational silos.

In a market where speed defines the winners, CSPs face a clear paradox: they have the ambition to innovate but are constrained by infrastructure built for another age.

The solution: add a flexible layer for digital revenue

Replacing core systems isn’t realistic, nor necessary. Instead, CSPs can augment their existing infrastructure with a modern, flexible monetization layer designed to accelerate digital revenue opportunities. This “dual-speed” approach enables organizations to:

● Accelerate time-to-market: reduce digital service launch cycles from quarters to weeks through specialized digital commerce capabilities.

● Experiment with pricing and bundles: empower business teams to test and iterate on pricing models, promotions, and bundles without heavy IT involvement — while maintaining revenue assurance and governance.

● Maintain operational continuity: let the core BSS handle rating, compliance, and billing, while the digital layer manages subscription lifecycle, partner settlement, and marketplace orchestration.

By separating fast-moving innovation from mission-critical operations, CSPs can unlock agility without compromising stability.

Managing operational complexity

A dual-layer architecture increases innovation velocity but introduces new operational considerations. To manage this complexity effectively, CSPs must establish clear frameworks for:

Data governance

● Core BSS manages customer identity, billing, and payment data.

● The digital layer governs subscription details, entitlements, and partner attributes.

● Real-time synchronization ensures accuracy across systems, backed by clear system-of-record policies.

Revenue assurance

● Automated daily reconciliation between digital transactions and core billing.

● Variance detection and resolution workflows.

● Unified audit trails and revenue recognition policies ensure compliance and financial integrity.

This added complexity is a deliberate design choice - one that trades limited operational overhead for dramatically improved business agility.

When to apply this approach

CSPs pursuing aggressive B2B2X, IoT, or digital marketplace strategies require the speed and flexibility that traditional BSS architectures can’t deliver. A modern monetization layer enables them to:

● Bring new offerings to market faster.

● Respond to trends and partners with greater agility.

● Capture more revenue across digital products.

● Drive innovation without disrupting existing systems.

Conclusion

CSPs don’t need to abandon the systems that built their success. They just need to build smarter on top of them. By introducing a flexible, agile monetization layer above legacy infrastructure, telecom operators can protect their core business while accelerating innovation, unlocking new revenue, and shaping the digital future.

From legacy to agility - it’s not about replacing the past. It’s about building on it, faster.