Telecom OS service assurance market to reach $5.3 billion in 2004

Oct. 18, 2001
Oct. 18, 2001--According to RHK, the demand for telecom OSS service assurance software within North America remains strong as carriers seek solutions that provide a unified view of their customers, services, and networks.

According to RHK, the demand for telecom OSS service assurance software within North America remains strong as carriers seek solutions that provide a unified view of their customers, services, and networks. In RHK's new report "Telecom OS: Service Assurance Forecast," RHK finds that despite a short-term decrease in the spending rate, service assurance software will reach $3 billion in 2001 and climb to $5.3 billion in 2004, experiencing a CAGR of 19 percent.

"Service assurance applications are designed to help carriers manage services as well as the elements delivering their service," explains Mark Basham, Director of RHK's Global Telecom OSS Service Assurance program. "These applications have a greater level of integration and move the burden of correlation from operator to system, cutting down on operating expenses. RHK finds that even in the current market conditions, service assurance will be a necessity for service providers to remain competitive."

RHK's new report segments the assurance market into six specific areas, each with its own revenue forecast. These include fault and service management, performance and service management, service control and security, billing mediation, fraud management, and application integration frameworks for service providers.

According to RHK, fault and service management is the largest segment of the service assurance market and captured one third of all market revenue. Fault and service management applications alert carriers to network and service problems, speeding up problem diagnosis and fault resolution. The fastest growing segment is service control and security, which is becoming increasingly necessary with the emergence of connectionless networks together with application-and content-oriented services.

"As the service assurance market matures, we expect to see some consolidation among vendors as providers demand a more "service centric" view that incorporates both fault and performance components," says Basham.

The Telecom OS Service Assurance North America Forecast explains the growth of specific market segments and shows the drivers for each. It includes primary research gathered from 25 service providers and over 200 vendors, plus secondary research on the overall financial health of service providers, vendors and the telecom economy at large. The service assurance forecast is available from RHK's Global Telecom OSS - Service Assurance: Global service. This continuous information service from RHK's STARTRAX product offering provides market share and analysis reports, market forecasts, and vendor and service provider profiles, in addition to other standard program deliverables.

About RHK:

RHK Inc. is a global industry market research and consulting firm specializing in the analysis of advanced technologies for the public telecommunications network. For more information, visit

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