Stiff competition for telecom operators worldwide has led to a major price war causing many companies to witness a decline in their profit margins. Many companies have reduced the cost of their services and software to gain a competitive advantage. With less money to work with, telecom vendors are not able to invest in telecom operation management systems, which is why the market is only expected to post a CAGR of 3.76 percent for the 2012-2016 period.
Many vendors took a large financial hit with the acquisition of 3G and LTE licenses at very high prices. In addition, the reduction in the cost of these Next Generation Service Delivery Platforms (NG SDPs) has increased the demand for them in recent years. However, that substantial reduction in cost has narrowed the profit margins of vendors.
Moreover, telecom operators are witnessing a significant decline in their voice-based revenue owing to intense competition in the market. Due to this increasing competition, the tariff rates for voice services are decreasing.
Fortunately, the high adoption of NG telecom technologies has resulted in the need for network management solutions, SDPs, billing solutions, and revenue management solutions. This in turn has increased investments in telecom operation management solutions, thereby propelling the growth of the Global Telecom Operation Management System market during the forecast period.
Telecom operators across the globe with access to NG telecom service technologies such as 3G and LTE started their initial deployment of 3G networks in 2010. Currently, almost all 3G license holders are expanding their network in the geographical locations where they have licenses.
In addition, LTE license holders have started rolling out their network. For instance in India, Infotel Broadband Services, owned by Reliance Industries, has pan-India licenses for broadband wireless access and is planning to roll out LTE services across the nation. Furthermore, leading telecom operators such as Verizon, AT&T, Bharti Airtel, and Vodafone have announced major projects for migrating to NG telecom networks from legacy telecom networks.
The increasing adoption of NG user provisioning solutions is expected to strengthen over the years and gain popularity among telecom vendors. NG user provisioning solutions offer a converged solution with multiple add-on features. Apart from the standard features/functionalities such as user account provisioning, user profile and account management, self-service, delegated administration, workflow, password management, and audit and compliance capabilities, NG provisioning products offer many more useful features. NG provisioning solutions also have compliance and audit capabilities while offering password management and administration and report functionality. Since NG user provisioning solutions act as a cost effective converged solution, they are expected to witness better adoption among the telecom companies in the years to come.
For more information, view our 2012-2016 Global Telecom Operations Management Market report.
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