Policy Management Market Set to Spike
March 29, 2011 - Openet
The policy management market is ready to jump 48 percent year-over-year for the next four years, quadrupling by 2015, according to a new report from Infonetics Research.
The Policy Management market size, share and forecast report tracks policy management software deployed in 3G broadband, WiMAX and LTE wireless networks, and in fixed-line and cable broadband networks.
“While bandwidth management requirements and network upgrades (such as LTE) remain key drivers behind policy investments, operators are also deploying policy management solutions to address near-term challenges, such as reducing churn and increasing ARPU via value-added services and customer retention programs. As a result, we’re seeing policy management buying decisions expanding beyond network operations divisions and moving ‘up the stack,’ with IT and marketing teams increasingly being brought into purchase decisions, creating a challenge for policy suppliers to build relationships with these new constituencies. Another key challenge for policy vendors is how to expand their product portfolios to include adjacent capabilities, such as charging and subscriber data management," said Shira Levine, directing analyst for next gen OSS and policy at Infonetics Research.
The report says policy management revenue grew 48 percent in 2010 to $418.7 million worldwide, with the majority of spending occurring in the wireless market. Infonetics says the worldwide policy management market will hit $1.6 billion by 2015.
Top suppliers in the overall policy management market and in the fast-growing wireless segment held extremely close market share in 2010, with Openet pulling into the lead, followed by Bridgewater and Tekelec, the report says.
Operators in emerging markets such as Africa, Latin America, Eastern Europe and parts of Asia are some of the more innovative users of policy control capabilities, using policy management to enable value-added services and create innovative loyalty programs.
Skyrocketing machine-to-machine connections will drive growth in the policy management markets, Infonetics says, as operators deploy solutions that identify and track M2M traffic and apply policy rules based on transaction type, time of day, network congestion, etc.
Regulatory factors impact the policy management market, such as the data roaming regulations implemented in the EU that are likely to be replicated in North America, which require wireless operators to implement real-time subscriber spend notifications and a cut-off mechanism once the subscriber’s bill reaches a certain limit.
The report tracks Alcatel-Lucent, Bridgewater, BroadHop, ComAbility, Elitecore, Ericsson, Huawei, Juniper, Kabira, Nokia Siemens, Openet, Redknee, Tekelec (Camiant), Telcordia, Volubill and others. It also includes analysis of policy management market customer wins and announcements made by service providers and vendors.