Telecom Software Development: The Prerequisites for a Smooth Start

Trung Tran

Trung Tran | 08/03/2024

Telecom Software Development: The Prerequisites for a Smooth Start

The telecommunications industry has come a long way from traditional landlines to modern-day wireless communication and connection through the Internet and mobile networks. Modern technology has brought a huge impact on telecom operations and network performance. Mentioning the role of emerging technologies, such as VoIP-based services (Voice over Internet Protocol), fiber optics, 4G/5G networks, not counting artificial intelligence, machine learning, the Internet of Things (IoT), location-based services (LBS), cloud, etc.

As the scale and complexity of telecom services are set to escalate, so does the need for custom software solutions in addition to the off-the-shelf ones. Such telecom software solutions are designed to adapt to unique business processes or needs and are built to integrate with existing infrastructure. And guess what? We all know custom software development is no easy feat. It requires extensive planning, a dedicated development team, and the right tools. Still, above all, developers need to be equipped with essential knowledge to kick-start the telecommunications software development project with confidence. And we are about to walk you through the basic info in this regard.

What Is Telecommunication?

What Is Telecommunication?

Telecommunication is a terminology that originated from Greek, meaning “communication at a distance.” Commonly referred to as telecom, the term depicts the transmission of information (of various types, such as signs, signals, messages, words, writings, images, voices, videos, files, and sounds) over long distances. Through a telecom network, wired or wireless, transmitters and receivers can stay mutually connected and communicate info seamlessly despite geographical barriers.

Main Types of Telecom Software

As mentioned earlier, custom telecom software is customized solutions tailor-made for particular operational processes and business needs. Therefore, such a telecom software solution can be one of the various types, each designed to perform specific functions as requested by telecom companies or service providers. The custom development process of an application or system that enables communication over telecom networks alters for each category. Note that a telecom solution can fall under two or more categories at a time due to its use case and the purpose it serves.

Operations Support Systems (OSS)

OSS is used to manage network resources and support the daily operational processes of telecom operators or service vendors. These computer systems are critical for maintaining network uptime, managing network reliability and capacity, and ensuring robust network performance.

Operation support systems include custom network management software, billing software, fault management solutions, personnel management tools, software-defined networking software solutions, customer relationship management (CRM) tools, VoIP solutions, etc.

Business Support Systems (BSS)

BSSs are aimed at augmenting the efficiency of customer-facing processes in telecom operations. These custom telecom solutions help to optimize resource allocation and take charge of the front business activities, from managing vast data volumes of subscribers to processing orders, billing, and handling inquiries and complaints. Business support systems are designed to deliver an improved customer experience while increasing profitability and reducing operational costs.

Some examples of BSS applications include customer management systems (CMS), order management systems (OMS), revenue management systems (RMS), Enterprise Resource Planning (ERP) systems, document management tools, predictive analytics solutions, accounting software, corporate portals, etc.

Value-added Services (VAS)

The core focus of VAS is to provide consumers with added value services beyond basic telecom services. These include a range of entertainment, informational, and transactional services such as mobile banking, music streaming, video on demand, location-based services (LBS), etc. Custom VAS solutions are developed to cater to specific demands and customer preferences of the telecom industry. To name a few, VAS includes SMS and MMS applications, mobile apps for gaming or e-commerce, digital wallets, infotainment systems, etc.

At the current time, telecom providers and companies have their eyes on AI-powered telecommunications solutions - the ones that entwine the power of AI, machine learning, and data analytics with telecommunications. These advanced software products streamline network resource management, increase the efficiency of business operations, reduce maintenance costs, and provide enhanced customer experiences. The most common AI-powered telecom solutions include automated network management software, predictive maintenance tools, chatbots for customer service, intelligent billing systems, etc.

The Factors That Impact the Total Cost of Custom Telecom Software Development

The Factors That Impact the Total Cost of Custom Telecom Software Development

One of the key concerns when it comes to custom software development is the cost factor. So, the question lingers: How much does it cost to develop custom software? Well, the answer isn’t straightforward. The total number a project or product may cost will always vary case by case on various factors:


The level of intricateness will cause the development cost to fluctuate. Of that, there is no doubt. For example, a basic telecom system with standard features certainly will not cost as much as AI-powered telecom software - those with more advanced functionalities. Obviously, the more complicated the product is, the more resources, time, and money it consumes.

Technology Stack

The choice of technologies (such as programming languages, frameworks, and tools) would also influence the final cost of a custom telecom software solution because different technologies come with different overheads and price tags. The types of software (Such as mobile applications, cloud-based systems, etc.) will also affect the project’s duration, as more complex software can demand more time.


The next thing about development costs a telecom organization should keep an eye on is the scale as well as scalability. The larger the project in terms of user capacity and nationwide or global rollout, the higher the cost due to increased resources and time required. The scalability matters just as much as the system should be robust enough to handle future expansions with reasonable adjustments and expenditures.

Human Resources

One critical factor that possibly breaks your bank when it comes to custom telecom software development is human resources. High-quality developers, designers, engineers, testers, and project managers with niche skills come at a significant cost. Plus, outsourcing or in-house hiring will also have a massive impact on the final price tag.


In today’s interconnected world, having a remote team or an offshore development center to work on your software product is a common practice. Depending on which country or region you choose, the cost might vary significantly due to labor costs, taxes, etc. The cost disparity at this point can significantly affect your total budget down the line. Therefore, many tech organizations, including telecom companies, outsource their projects to an IT destination with sufficient resources and affordable costs. Vietnam is a good option.

Of course, there’s no harm in considering references from others. In fact, it can help you visualize how to distribute your budget for the software project effectively:

  • Small projects with fewer requirements and functions fall between around $20,000 and $50,000.
  • The cost of creating custom software of medium size can range from $120,000 to $220,000.
  • For custom-made solutions involving complicated technologies and features, it can cost more than $100,000 with 2000 hours of delivery time.
  • For larger, more complex projects, such as an enterprise-grade ERP system, costs can start at $500,000.

Work with the Best-in-class Telecom Software Developers

Are you searching for a reliable partner for your upcoming custom telecom development project? Seek nowhere else. Come to Orient Software - The best telecom software development services you can find.

Orient Software is a software development house based in Vietnam that has been providing quality custom software development and IT staff augmentation services to clients worldwide. Our expertise is not limited to one specific category - namely telecommunications - but spans across different verticals and scales.

We understand the significance of the human factor in software development. Aside from our cutting-edge technology stack, experience, and competency, we are empowered by a sizable team of tech talent- whom we carefully select - with a blend of both youth and experienced, ranging from developers to UI/UX designers, QA engineers, project managers, and others. Your partnership with us will undoubtedly deliver an outstanding product or project that will meet your business objectives efficiently and cost-effectively.

Check out our case studies for a few in many typical projects, or contact us today for a free consultation and more details. Start your success of a software development project with us today!

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