The global market for operations support systems (OSS) --
the software infrastructure that manages telecom and broadband networks
will grow to exceed $67 billion come 2016, according to a new
Insight Research report. Industry spending for OSS is expected to
mirror the forecast growth in service revenue over the next five
years, indicating the industry is anticipating sustainable growth
over the next five years.
Insight forecasts that network operators will increase their OSS
investments at a 5.9% compound annual growth rate (CAGR) between
2012 and 2016.
Breaking out the forecast along geographic and functional business
lines, North American investment in computing and software
systems to acquire, serve and bill customers will increase at a
4.6% CAGR, lagging overall investment worldwide. OSS expenditures
by service providers in the Asia, Europe and Latin America regions
will grow at a 6.3% rate.
Much of the new OSS investment is in support of wireless 3G and 4G
services. Annual OSS spending to support broadband wireless will
increase from $3 billion to $22 billion between 2012 and 2016,
"Telecommunications providers will continue to invest in systems
that streamline their operations - particularly in growth areas
such as customer care and network engineering for wireless services"
Insight director Fran Caulfield commented. "Our research confirms
continued strong growth for both wireless services and the
operations systems that support the proliferation of smartphones,
tablets, and mobility applications."