As the transition from traditional BSS/OSS to next-generation telecoms IT gathers pace, vendors’ revenue in Europe is forecast to rise from EUR5.1 billion in 2006 to more than EUR9.5 billion in 2013 (with a compound average growth rate of more than 9%), according to the latest forecasts by Analysys.
“Growth in the market will be driven by operators’ changing investment requirements as they seek to create and launch new services. Operators’ spend on software is shifting away from traditional sectors of the BSS/OSS market, such as billing, and into areas including service delivery, business intelligence and network security,” says author Raushan Sagalbayeva.
“In addition, spend on integration will increase significantly as operators seek to combine legacy and new systems in order to deliver a much wider range of services over fixed broadband and evolved 3G mobile networks.”
“We believe that functional domains, based on integrated processes, are a more appropriate way of looking at the market than the traditional BSS/OSS distinctions, which are becoming outdated,” says Danny Dicks, Principal Analyst and project director of Analysys Research’s Next-Generation Telecoms IT online market intelligence service. “Four broad application-layer domains have emerged: cash, customers, resources and services. Operators must also consider three other vital areas: data management, security and systems integration,” he concludes.
Key findings include:
* spend on service-related software systems, including service delivery and service management, will overtake spend on cash-related systems, including billing systems and revenue assurance, by 2011
* integration – which includes both integration services and spend on tools to support integration – will remain the biggest domain in the telecoms IT market, growing to EUR3.5 billion by 2013
* growth in spend on telecoms IT will be fastest among mobile operators. Mobile operators will represent 64% of the addressable market for telecoms IT vendors in 2013, up from 54% in 2006.