LONDON, 24 February, 2022 – Vendor revenue from the entire telco charging market is expected to grow at a CAGR of 5%, from $1.21bn In 2021 to reach $1.56bn in 2026 between 2021 and 2026, according to Omdia’s technology analysis on converged charging in 5G. This growth will be driven entirely by converged charging systems (CCS), which are designed to converge the capabilities of online and offline charging functions and support a wider variety of chargeable services, including 5G services.
Figure 1: Forecast for vendor charging revenue growth, 2020–26 ($m)
Communications service providers (CSPs) are under pressure to monetize the billions spent on building out 5G. A crucial link in the chain to 5G monetization is their charging systems, which have been traditionally static and limited to telco specific value recognition. For this reason, they are turning towards CCS which are 5G-ready and can monetize a broader range of services.
There are two major trends driving CCS adoption. The first key trend for the adoption of CCS is the implementation of 5G standalone (SA) networks and the exploration of B2B(2X) business models by CSPs. For operators to fully monetize their 5G SA investments, they need CCS. Many of the 172 operators who have commercially launched basic 5G services by the end of 2021 will now be in the process of deciding on their 5G CCS vendors as they prepare for more advanced 5G services.
A second key trend driving the deployment of CCS is increasing interest in mobile virtual network operator/enabler (MVNO/E) business models and the growing number of mobile network operators (MNOs) launching sub-brands to target specific consumer and enterprise segments. Omdia’s sub-brand tracker shows a high penetration of sub-brands in North America and Western Europe, and significant sub-brand growth across Europe and the Middle East. The interest in CCS stems from the flexibility and responsiveness it affords these new brands, as well as its empowerment of these brands to have greater control over all aspects of their customers’ experience.
This market report on the maturity of convergent charging solutions in the telecoms industry also includes 11 CCS solution-vendor profiles and their strategies in this area. It is based on a mixture of primary and secondary research; interviews with industry stakeholders, including network operators and CCS solution providers; telecommunications results from the annual Omdia IT Enterprise Insights survey of more than 4,000 enterprise IT influencers and decision-makers from around the globe; results from the Omdia OSS/BSS Evolution Survey – 2022, which surveyed 95 operators from around the globe; and additional Omdia proprietary datasets including revenue trackers, forecasts, and IT contracts that were also consulted to support the analysis.
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