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An Upside for Operations Support Systems

The global market for operations support systems (OSS) -- the computing and software IT infrastructure that performs engineering, provisioning, and management functions in telecommunications networks -- will exceed $46 billion in 2008, according to the study by Insight Research.

Telecommunications industry spending for OSS platforms is expected to lag only slightly the forecast growth in service revenue over the next five years, indicating that the industry is fully expecting sustainable growth in the years ahead.

According to their report entitled "Operations Support Systems, 2007-2012," telecom network operators worldwide are forecast to increase their investment in OSS platforms at a compounded rate of just over eight percent over the next five years.

North American investment in the computing and software systems used to acquire, serve, and bill customers will lag worldwide investment, growing at a compounded rate of nearly six percent over the same period, while OSS expenditures made by carriers in the Asia-Pacific and Latin America regions will grow at double digit rates.

The report found that broadband service providers are investing most heavily in those OSS platforms needed to support 3G data services. By the end of the forecast period, OSS spending to support broadband wireless will be more than double the amount being spent on wireline OSS.

"The carrier community has fully recovered its confidence and is investing in OSS at nearly the same rate that consumers and businesses are picking up new wireline and wireless services," says Insight president Robert Rosenberg.

"Our research suggests that terrific growth is ahead for those OSS needed to support 3G wireless services. RF planning and engineering tools and the professional service need to support them, carrier-to-carrier billing and service provisioning tools, as well as customer-accessible service management systems all appear to be growth areas in the months ahead," concluded Rosenberg.

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