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Service Delivery Platform Revenue Forecast

The rapidly growing Service Delivery Platform (SDP) market, including software and integration services, is forecast to reach $3.5 billion in 2010, according to a new report from Infonetics Research.

A growing number of mobile and fixed-line operators are deploying SDPs or incremental services based on existing SDPs to remain competitive with facilities-based competitors, and to stave off competition from Web-based application providers like Google and Yahoo, the report states.

Offering new media-rich bundled services like IPTV, video on demand (VoD), video telephony, and fixed-mobile convergence (FMC) is the only way to thrive in the competitive communications environment. All these new services will require significant capex and opex for new hardware components and their integration into existing signaling, OSS, and BSS networks.

The solution? According to Infonetics, it's an investment in service delivery platform software and associated integration services.

"Getting new services out to subscribers and monetizing them is the name of the game for service providers in a hyper-competitive environment that includes facilities-based and Web-based application providers, and SDPs help them achieve that goal. SDPs build on concepts from the original IN (Intelligent Network) and enterprise IT networks and allow service providers to open up their service creation and provisioning networks to developers and introduce Web services. Just about every major fixed and mobile service provider has deployed or is deploying an SDP to deliver media-rich services," said Jeff Heynen, directing analyst at Infonetics Research.

Although SDPs have primarily been used by mobile operators to ease the integration of third party independent software vendors and to more quickly roll out converged voice, data, and location-based services, SDPs continue to gain considerable traction among fixed-line providers, where margins on traditional voice services continue to face erosion.

On the mobile side, SDPs are being used to deliver content charging, mobile gaming, mobile video, multimedia messaging, and location-based services, while on the fixed-line side, SDPs are being used to deliver click-to-call, voice portals, virtual call centers, and unified communications.

Infonetics market study highlights include:

- Fixed-line SDP revenue accounts for 15 percent of total SDP revenue in 2006.

- Mobile SDP revenue accounts for 85 percent of total SDP revenue in 2006.

- Revenue from fixed-line SDP deployments are forecast to skyrocket between 2006 and 2010.

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