Ericsson, Amdocs Gaining Convergent Charging Market Share

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Big things are in store for the global convergent charging market.

A new report from Infonetics Research says the market will experience a 24 percent compound annual growth rate (CAGR) from 2011 to 2016. Infonetics' latest "Convergent Charging Software and Services" report also says that once final figures are in for 2012, Ericsson will have taken a much larger share of the market, given the size of its own and Telcordia's combined subscriber bases; Amdocs is anticipated to gain share as well.

"The convergent charging market continues to mature, with tier 1 operators now more aggressively deploying solutions to support new services and pricing models, particularly those embarking on LTE upgrades," notes Shira Levine, directing analyst for service enablement and subscriber intelligence at Infonetics Research. "As this occurs and suppliers look to solidify their charging capabilities," Levine adds, "we expect to see additional consolidation in the vendor community, such as Redknee's recent acquisition of Nokia Siemens Networks' BSS business, as well as ongoing traction for integrated policy/charging solutions that enable operators to introduce consumption-based offerings."

Infonetics says the primary drivers for convergent-charging revenue growth are an increasing number of subscriber licenses, especially in emerging markets, and intensified operator investment in developed markets, where license costs are less pressured.

Real-time convergent charging capabilities are critical to shared data plans, Infonetics noted, as they enable operators to ensure that subscriber-credit balances are not exceeded and to place limits on individual plan members, as Verizon Wireless is doing with its Usage Controls service.

Though the primary opportunity for convergent charging lies in mobile networks, there is some activity among wireline operators, mainly in multiservice convergence, the report says.

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