New Era for Wireless Billing Means Big Business for Vendors and Suppliers, IDC Says

date: December 11, 2001

The wireless IP billing market is poised for exponential growth starting in 2002. Despite the slowdown in network infrastructure spending and the decreased confidence surrounding the events of September 11th, this market is still growing strong. The worldwide packet-based wireless billing market is expected to catapult from $94.6 million in 2001 to $855.7 million in 2005. This is a CAGR of 73.4% for the forecast period. Service providers will proactively expand their spending for billing solutions in order to migrate from flat-rate IP billing to usage-based revenue generation models. Next-generation wireless IP billing solutions that enable this change can in fact determine the winners of the increasingly complex telecom value chain.

In 2001, GPRS billing was first introduced and revenues grew from virtually nothing to nearly $100 million. IDC estimates that in 2001, there have been approximately 40-45 new GPRS billing deals initiated worldwide. For billing, the migration to 3G from the intermediate 2.5G technologies such as GPRS or EDGE will mean more than transmission speed changes.

"All the next-generation billing supplier strategies have started to cross paths with 3G," said Levent Toros, senior analyst for IDC's Next Generation OSS and Billing service. "From mediation players to incumbent voice billing vendors, all the different parties in the value chain want to participate in this emerging market opportunity. The key for billing vendors is to offer solutions that enable value-based revenue generation in the wireless data services."

Unique challenges which arose with billing for roaming and content-based rating are resulting in accelerated product innovations. As a result, there are now attractive new opportunities for billing/customer care and mediation system vendors.

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last updated: January 12, 2004

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