MegaFon
Nexign enables MegaFon to reduce TTM by 2-5 times
<?$model->companyLogoFile->title?>

Companies: MegaFon PJSC

Region: Russia, Tajikistan

Nexign solution: Nexign Digital BSS

Duration of deployment: 2015-2020

 

Success story summary

To broaden its offerings beyond classic telecom services, MegaFon needed to transform its billing system. Together with Nexign, they have driven a unique project to seamlessly migrate all eight operator’s subsidiaries and the whole subscriber base to a unified BSS platform. With Nexign’s solution, MegaFon has also established a partner ecosystem and a microservices fabric. As a result, the operator launched over 100 new business projects and slashed time to market (TTM) for different product categories by 2-5 times.

Customer profile

MegaFon PJSC is a pan-Russian provider of digital opportunities and a leader in the Russian and global telecommunications market.

Challenge

Initially, MegaFon has been evolving as a group of companies that have become its subsidiaries following the company’s restructuration in 2009. MegaFon needed to unify the subsidiaries’ IT infrastructure to take its business to the next level and facilitate digital transformation. With billing system being the backbone of the IT infrastructure, the fact that subsidiaries were utilizing 7 separate solutions with different logic and custom code led to an array of issues. Such variety of BSS systems did not allow to fully unify the company's business processes. It also hindered launching new offerings, made integration of partner services more complicated and required substantial investments to support these systems. 

In 2015, the executive leadership team decided to bring the whole company to a unified billing system and set the following strategic goals:

  • Support digital and business transformation;
  • Improve the quality of customer service;
  • Centralize and accelerate launch of new business projects;
  • Create an ecosystem that will facilitate faster integration of the external partners;

Optimize total cost of ownership (TCO) for the billing system by 20-30%.

 

Solution

This project is unique in many ways. Together with MegaFon, we ran complex transformation of its systems. With modernizing the BSS platform, the company also had to undergo serious organizational and procedural changes

The project required to simultaneously migrate 75 mln subscribers to the new platform and support legacy billing solutions until they are fully replaced – this only added to the challenge. Thanks to coming up with an accurate plan together with the operator, migration of B2C subscribers ran nearly unnoticed for the customers: additional tariff schemes were added to the new billing system at once, while the existing ones were migrated gradually.

Middle Layer and microservices fabrics

The transformation of the billing service substantially decreased TTM for the new products. However, with such a high pace of modernization in the telecommunications market, MegaFon needed to further speed up its transformation.  To overcome this challenge, MegaFon and Nexign created a layer of microservices above the billing, so new projects could be promptly created and tested by our own developers or external suppliers.

Thanks to introducing this extra layer, the TTM for a new functionality was slashed from several quarters to 2-3 weeks. As an added value, MegaFon is now able to quickly solve tasks related to piloting and testing without making changes to the core of the billing.

Moreover, the Middle Layer created a setting for integrating new partners. The plethora of microservices consolidated on this level serves as a basis for partner and customer cooperation in the joint initiatives.

Thanks to microservices, by autumn 2020, MegaFon launched over 100 projects.

Product Catalogue

Nexign Product Catalogue works as a central configuration point for all operator’s offerings. It supports the whole product lifecycle from the inception and adjustment of price and other parameters to the product’s decommissioning. The catalogue provides MegaFon with the information required for coordinated functioning of the rating, service and self-service systems, billing, order management, settlement payments and many more. With the ongoing partnership, catalogue’s functionalities will be further expanded.

We are still working on the catalogue and plan to finish the works in 2021. Though the catalogue hasn’t become a silver bullet for all our problems yet, we have already achieved a lot. The first and second levels – local catalogues and the product catalogue – have already been launched. Now we are in the final stages of completing the third – federative level, which will enable faster integration with partners and channels

Results

  • Successfully migrated all 8 subsidiaries into one billing system with the unified billing processes.
  • Transition of eight subsidiaries to a unified system allowed to slash costs on the billing’s support and increase its efficiency.
  • Unified business processes and aligned product portfolio across all subsidiaries while retaining flexible pricing policy for the regions.
  • Reduced the TTM for different products by 2-5 times.
  • Launched over 100 products with the microservices fabrics.
  • The project was a significant contribution to MegaFon's transformation of the telecom operator into the operator of digital opportunities. The company managed to broaden its o­fferings beyond classic telecom services and start providing digital products and services by expanding its partner ecosystem in particular.