Research Report Revenue management systems: worldwide market shares 2012 August 2013 Justin van der Lande and Dean Ramsay
2 Contents Slide no. 5. Executive summary 6. Overall revenue management market summary 7. Overall revenue management market summary, with 2011 comparison 8. Factors that affected the revenue management market in 2012 9. Revenue management market summary by sub-segment 10. Overall revenue management market summary by region, with 2011 comparison 11. Recommendations 12. Recommendations for CSPs 13. Recommendations for vendors 14. Business environment 15. The business environment in 2012 16. Regional outlook for 2012 17. Market shares 18. Overall revenue management market summary 19. Revenue management market shares by product revenue 20. Revenue management market shares by product-related services revenue 21. Prepaid billing 22. Postpaid billing 23. Convergent billing 24. Partner and interconnect 25. Business optimisation 26. Mediation Slide no. 27. Vendor analysis 28. Alcatel-Lucent 29. Amdocs 30. AsiaInfo-Linkage 31. Comverse 32. Convergys (billing unit now part of NEC/NetCracker) 33. CSG International 34. Ericsson 35. Hewlett-Packard 36. Huawei 37. Nokia Siemens Networks 38. Oracle 39. Orga Systems 40. Redknee 41. SAS 42. Subex 43. WeDo Technologies 44. Vendor analysis summary [1] 45. Vendor analysis summary [2] 46. Vendor analysis summary [3] 47. Vendor analysis summary [4] 48. Vendor analysis summary [5]
3 Contents Slide no. 49. Mergers and acquisitions 50. Mergers and acquisitions 51. Market definition 52. Definition of geographical regions 53. Telecoms software market segmentation 54. Revenue management sub-segment definitions 55. Postpaid billing systems 56. Prepaid billing systems 57. Convergent billing systems 58. Partner and interconnect systems 59. Business optimisation systems 60. Mediation systems 61. Revenue management deployment scenario 62. Revenue management overview 63. Service sector and revenue type definitions 64. About the authors and Analysys Mason 65. About the authors 66. About Analysys Mason 67. Research from Analysys Mason 68. Consulting from Analysys Mason
4 List of figures Figure 1: Revenue management market shares by revenue, worldwide, 2012 Figure 2: Revenue management market shares by revenue, worldwide, 2011 and 2012 Figure 3: Revenue management revenue by region, worldwide, 2011 and 2012 Figure 4: Revenue management market shares by revenue, worldwide, 2012 Figure 5: Revenue management market shares by product revenue, worldwide, 2012 Figure 6: Revenue management market shares by product-related services revenue, worldwide, 2012 Figure 7: Prepaid billing market shares by revenue, worldwide, 2012 Figure 8: Postpaid billing market shares by revenue, worldwide, 2012 Figure 9: Convergent billing market shares by revenue, worldwide, 2012 Figure 10: Partner and interconnect market shares by revenue, worldwide, 2012 Figure 11: Business optimisation market shares by revenue, worldwide, 2012 Figure 12: Mediation market shares by revenue, worldwide, 2012 Figure 13a e: Comparison of revenue management suppliers by region and service sector Figure 14: Mergers and acquisitions in the revenue management market, 2008 2013 Figure 15: Regional breakdown used in this report Figure 16: Telecoms software market segments Figure 17: Definitions of revenue management sub-segments Figure 18: Key functions of postpaid billing systems Figure 19: Key functions of prepaid systems Figure 20: Key functions of convergent billing systems Figure 21: Key functions of partner and interconnect systems Figure 22: Key functions of business optimisation systems Figure 23: Key functions of mediation systems Figure 24: Revenue management deployment scenario Figure 25: Service sector definitions Figure 26: Revenue type definitions
Share of revenue Revenue management systems: worldwide market shares 2012 10 Overall revenue management market summary by region, with 2011 comparison Figure 3: Revenue management revenue by region, worldwide, 2011 and 2012 [Source: Analysys Mason, 2013] 1 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 27.3% 27.6% 37.7% 36.8% 8.5% 8.4% 26.5% 27.2% 2011 2012 APAC EMEA LATAM NA Key: APAC = Asia Pacific; LATAM = Latin America; EMEA = Europe, the Middle East and Africa; NA = North America. Summary for 2012 NA s share of the worldwide revenue management market grew slightly, driven by growth in the mobile broadband market as a result of significant LTE roll-outs. LATAM s market share remained flat despite high growth in subscriber numbers, largely because of aggressive pricing. EMEA s market share declined by almost a percentage point because of the lingering effects of economic instability in Western Europe. APAC s share increased by 0.3 percentage points, driven by steady growth in subscriber numbers. Outlook for 2013 Economic conditions in Western Europe will restrict EMEA to low growth rates despite higher growth rates in the Middle East and Africa. Emerging markets particularly in LATAM will increase their market shares. NA will continue to recover, driving up year-on-year growth in most revenue management sub-segments in 2013. Growth in spending will slow in APAC s emerging markets, as new subscribers become less abundant.
64 Executive summary Recommendations Business environment Market shares Vendor analysis Mergers and acquisitions Market definition About the authors and Analysys Mason
65 About the authors Justin van der Lande (Senior Analyst) leads the Revenue Management and Analytics Software Strategies research programmes, which are part of Analysys Mason's Telecoms Software research stream. He specialises in business intelligence and analytics tools, the functionality of which cuts across all of the research programmes in this area. He also provides project management for large-scale projects within our Telecoms Software research. Justin has more than 20 years' experience in the communications industry in software development, marketing and research. He has held senior positions at NCR/AT&T, Micromuse (IBM), Granite Systems (Telcordia) and at the TM Forum. Justin holds a BSc in Management Science and Computer Studies from the University of Wales. Dean Ramsay (Analyst) is a member of Analysys Mason s Telecoms Software research team, consolidating output across the seven telecoms software research programmes. He has 12 years experience in the telecoms industry, working in operations and service delivery with major Tier 1 and more niche Tier 2 carriers, focusing on order management, revenue management and service delivery systems. Dean joined Analysys Mason in 2011 following two years working as an analyst in the mobile sector. Dean holds a BA in English from Anglia Ruskin University.
66 About Analysys Mason Knowing what s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research. Consulting Our focus is exclusively on TMT. We support multi-billion dollar investments, advise clients on regulatory matters, provide spectrum valuation and auction support, and advise on operational performance, business planning and strategy. We have developed rigorous methodologies that deliver tangible results for clients around the world. For more information, please visit www.analysysmason.com/consulting. Research We analyse, track and forecast the different services accessed by consumers and enterprises, as well as the software, infrastructure and technology delivering those services. Research clients benefit from regular and timely intelligence in addition to direct access to our team of expert analysts. Our dedicated Custom Research team undertakes specialised and bespoke projects for clients. For more information, please visit www.analysysmason.com/research.
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68 Consulting from Analysys Mason For more than 25 years, our consultants have been bringing the benefits of applied intelligence to enable clients around the world to make the most of their opportunities. Our clients in the telecoms, media and technology (TMT) sectors operate in dynamic markets where change is constant. We help shape their understanding of the future so they can thrive in these demanding conditions. To do that, we have developed rigorous methodologies that deliver real results for clients around the world. Our focus is exclusively on TMT. We advise clients on regulatory matters, help shape spectrum policy and develop spectrum strategy, support multi-billion dollar investments, advise on operational performance and develop new business strategies. Such projects result in a depth of knowledge and a range of expertise that sets us apart. We help clients solve their most pressing problems, enabling them to go farther, faster and achieve their commercial objectives. To find out more, please visit www.analysysmason.com/consulting.
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