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Global Subscriber Data Management Upside

According to an Infonetics Research market study, the worldwide subscriber data management (SDM) software and integration services market will end 2008 up 21 percent, reaching $128 million.

According to their report, updated recently to reflect changing global economic conditions, the SDM market is expected to surpass the original forecasts.

"Although the global economic turmoil has operators lowering their capital expenditure (capex) budgets for 2009 and the initial part of 2010, our discussions with operators and subscriber data management vendors indicate spending on SDM solutions will actually increase," said Jeff Heynen, directing analyst at Infonetics Research and lead analyst on the report.

SDM software is viewed as solving multiple pressing issues, including preventing dirty or duplicate data, reducing revenue leakage due to fraud, reducing operational costs, and speeding time to market for new services. All of these issues are critical as operators seek to improve their bottom lines when top-line growth is hard to come by.

Customers want their services to be personalized and delivered in a timely fashion, so service providers are embracing technologies that provide rapid and specific subscriber insight. Subscriber data management software helps provide this insight and solves some longstanding operational inefficiencies to boot.

"Because of SDM's growing importance, we have almost doubled our 2011 SDM software and integration services revenue forecast from our last report," added Dan Geiger, Infonetics' new directing analyst for next gen OSS and policy.

Highlights from the Infonetics report include:

- SDM software makes up the bulk of SDM sales, while SDM integration services are growing at a faster pace.

- Despite interoperability challenges posed by federating data from multiple data stores, many service providers will purchase SDM software along with off-the-shelf servers and integrate the software themselves.

- Mobile operators are using SDM solutions to extend the life of their existing HLR and next gen HLR platforms to deliver fixed-mobile convergence services at a lower overall cost.

- Mobile operators in EMEA and fixed line operators deploying VoIP and IPTV services in Asia were the first to deploy SDM software to reduce operational costs and prepare for the transition to next-generation HLRs and, ultimately, HSSs.

- The EMEA region is forecast to make up 46 percent of total worldwide SDM market revenue in 2008.

- Central and Latin America is the smallest but fastest growing regional market for SDM software and integration services.

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