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3G Mobile and VoIP to Spearhead Growth

23rd November , 2004

US : Dittberner Associates Inc. forecasts the worldwide market for mediation software and services will grow to $1.25 billion dollars in 2009, from an estimated $824 million dollars in 2004.

According to Dan Baker, director of Dittberner’s OSS/BSS KnowledgeBase, the adoption of next generation network services such as VoIP and 3G mobile has revitalized a mediation market that’s been sluggish for the past few years. He cites the following factors driving the market:

- The rise of a new class of VoIP service providers such as Vonage and AOL;
- Traditional carriers upgrading their mediation systems to handle softswitch rollout;
- The need for highly flexible, scalable, and real-time-based mediation platforms to enable and control advanced 2.5G and 3G mobile services.

“Mediation vendors have always rested their laurels on having a Swiss Army knife solution, a technology independent tool that could abstract away the complexities of just about any network technology or telecom service you could throw at it,” says Baker.

“Having a good mediation tool is still vital, but the big differentiator today is operating experience. The best vendors are those who can scale their platforms to millions of subscribers and manage the thousands of business rules and exceptions that live in an advanced IP or 3G network”, he adds.

The following graph shows the mediation market breakout in 2009. The fastest growth will come from two segments: real-time packet usage (associated with video and VoIP) and 2.5 and 3G mobile usage.

Methodology: The model Dittberner Associates used to forecast mediation market growth is based on several parameters: mediation market historical growth; Dittberner’s forecast of Next Generation Network (NGN) services growth; discussions with carrier mediation experts; and interviews with mediation vendors.

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