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Study: Policy management software to top $1.9B by 2016

Fri, 09/28/2012 - 3:34pm
Mike Robuck

Infonetics chartGlobal sales of policy management software for wireless and fixed-line networks grew 41 percent last year and are on a similar trajectory so far this year. Long term, the market will top $1.9 billion by 2016, according to a study by Infonetics Research.

“Growth in the policy management market is being driven not only by new wins, particularly in conjunction with infrastructure upgrades, but also through the expansion of existing contracts and by replacement activity,” said Shira Levine, directing analyst for service enablement and subscriber intelligence at Infonetics Research. “We’re seeing many operators run into scalability and flexibility issues with their first-generation policy solutions, and they’re either replacing them with new solutions or augmenting what they have in place with additional functionality to support things like new pricing models and advanced subscriber controls.”

The study tracked policy management software deployed in wireless networks, including 3G broadband, WiMAX, LTE, and fixed-line broadband and cable broadband networks.

Other highlights from the study included:

  • The wireless segment is a key area of growth in the policy management market as mobile operators deploy policy solutions for 3G and LTE networks.
  • Mobile operators in emerging markets such as Eastern Europe and the Middle East are using policy management to combat high subscriber churn rates and increase ARPU through loyalty programs, expanded payment options and value-added services.
  • Shared data plans – where a “bucket” of data is shared among subscribers or devices – are driving operator investment in flexible, real-time policy solutions.
  • The larger policy management and billing vendors are more tightly integrating policy control and charging functionality into their solutions.
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