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Table of Contents

Market Study
Published: January 2010
Pages: For full details, please email keithw@cmsinfo.com
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 1998.64   Buy Now!
Research from: Analysys Mason
Sector: Networks & Infrastructure

Interconnect and partner billing software systems have evolved rapidly to automate the settlement process between communications service providers (CSPs) and partners who provide part of the service.

Interconnect and partner billing software systems have evolved rapidly to automate the settlement process between communications service providers (CSPs) and partners who provide part of the service. Interconnect settlement software systems enable CSPs to accurately record the volume and value of traffic (primarily voice calls) that cross their network borders. CSPs terminating incoming traffic from international destinations are able to claim a share of the revenue from the originating CSP. Partner settlement software systems provide equivalent capabilities for non-telecom partners who provide content, applications and other services. Partner settlement is the fastest growing part of the partner and interconnect billing segment.

We identify three major areas of partner and interconnect settlement:

- call termination settlement
- mobile roaming settlement
- partner settlement with content providers and other, non-telecoms, partners.

Call termination settlement is required when a call is made from one CSP's network that requires termination on another CSP's network. The originating CSP will bill the end customer, but it will be required to pay one or more CSPs involved in the termination of the call. This is the oldest settlement area, which has grown dramatically in the last two decades with the deregulation of telecoms markets and the proliferation of mobile CSPs. It is now a mature area, but the magnitude of the settlement charges (a significant percentage of many CSPs' revenue) creates opportunities for optimisation of the settlement infrastructure and process. Most call termination settlements have been provided by third-party clearance companies, but CSPs are starting to deploy their own platforms to support settlement with major partners.

Mobile roaming settlement is required where the CSP's subscriber has roamed to another CSP and makes a call. Unlike interconnect, in which settlement is usually performed by the CSP, settlement for roaming calls commonly involves a clearing house or exchange, such as MACH or Syniverse. There are two main types of clearing houses used by mobile CSPs: data and financial. Some CSPs use clearing houses to exchange roaming data, but prefer to settle directly using their own settlement solution; others choose to outsource both data exchange and settlement to a clearing house.

Partner settlement for service and content provided by non-telecoms partners is a rapidly changing and strategically important area. In order to compete as mobile broadband is rolled out, CSPs need to offer content, social networking, Web 2.0 services, advertising, search, location, gaming and other innovative services. There are established Internet and media companies that CSPs must partner with to deliver these services. CSPs must also attract smaller innovative partners to meet customer expectations. Partner settlement systems address these types of relationship.

This report gives a view of the current state of partner and interconnect billing, a forecast of spending growth and an extensive explanation of the changes that are taking place as this market shifts to include new types of partner.

The Interconnect and partner billing outlook provides a detailed five-year forecast. The forecast is broken out by region and service types, providing forecasts for eight different segment views. The report includes market shares of the leading suppliers and explains the overall business environment for partner and interconnect billing software. The report provides a definition of the different types of partner an interconnect settlement requires.

The report addresses the impact of the following trends:

- High mobile subscriber growth
- Declining voice revenue and the drive for cost savings
- Proliferation of non-telecom partners
- Increasing number of bill disputes
- Introduction of new complex IP-based services• Just-in-time buying and selling of capacity
- Network sharing
- Rate proliferation and change.

The report includes a table comparing the leading partner and interconnect billing solution suppliers and a chart of the leading suppliers' market shares. The market share section includes explanations of the positioning of the six leading suppliers.

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Table of Contents

Executive summary .. 4
Market Share ... 6
Forecast ... 9
Forecast by communications service ... 9
Forecast by region . 10
Market drivers and inhibitors .. 13
Drivers 13
High mobile subscriber growth 13
Declining voice revenue and drive for cost savings 14
Proliferation of non-telecom partners .. 15
Bill disputes are increasing.. 16
New complex IP-based services . 16
Just-in-time buying and selling of capacity .. 18
Infrastructure sharing .. 18
Rate proliferation and change . 19
Business inhibitors . 19
Inertia combined with other priorities .. 19
Lack of expertise . 20
Partner settlement projects are low in budgeting priority 20
Business environment 21
Interconnect settlement .. 21
Roaming settlement ... 23
Content, application and advertising revenue share .. 25
Buying an entirely new system 26
Buying an adjunct system or module from existing interconnect or retail billing supplier 26
Building a solution in house. 26
Outsourced service . 26
Market definition . 27
Partner and Interconnect Billing Definition . 27
Interconnect billing . 31
CABS billing and reciprocal compensation in the US market . 33
Roaming billing .. 34
Content and application partner billing ... 35
Vendor summaries . 37
Amdocs .. 37
Comptel .. 37
Convergys .. 37
Ericsson . 37
I-ConX 37
Intec ... 38
Oracle 38
Sitronics . 38
Subex . 38
Telarix 38
Valista 39
Partner billing suppliers .. 40
Recommendations . 42
Recommendations for CSPs .. 42
Recommendations for vendors .. 43
List of figures
Figure 1: Partner settlement forecast ... 4
Figure 2: Partner settlement market share .. 6
Figure 3: 2008-2013 Partner settlement forecast 9
Figure 4: 2008-2013 Partner settlement forecast by communications service .. 10
Figure 5: 2008-2013 Partner settlement forecast by region... 11
Figure 6: Industry convergence.. 25
Figure 7: Partner and interconnect billing in the Analysys Mason segmentation .. 27
Figure 8: General partner and interconnect scenario 28
Figure 9: Interconnect scenario.. 31
Figure 10: Mobile roaming scenario ... 34
Figure 11: Content and application partner billing . 35
List of tables
Table 1: Comparison of partner and interconnect billing suppliers 40

For full details, please email keithw@cmsinfo.com

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