‘Butterfly Effect’ of tiny Industry segment could change Telecommunications

Boston, MA - August 23, 2011 - Strategy Analytics shows why the mobile broadband policy and traffic management industry is ripe for partnerships and mergers in a new report from its Mobile Broadband Opportunities (MBO) service, “Mobile Broadband Policy and Traffic Management - Industry Consolidation Coming?” This report examines major tactics for vendors, and demonstrates where industry consolidation is most likely. 

Sue Rudd, Director, Service Provider Analysis, noted, “Many of these players already partner with each other -- and with traditional equipment manufacturers – in order to deliver complete solutions for mobile operators.  As service providers race to optimize capacity that will satisfy mobile broadband demand, policy management has changed from a passive network tool to a strategic business weapon. To meet operator needs, players may need to team up permanently to integrate and test high performance solutions that can increase capacity by 50 percent at a fraction of the cost of new infrastructure.” 

According to Susan Welsh de Grimaldo, Director, Mobile Broadband Opportunities, “There are three areas where new capabilities will demand consolidation:

• personalization for new mobile data services;
• billing for real time pricing and billing options; and
• applications, media and video optimization.”

She continued, “Policy tools can now directly modify data plans and pricing instantaneously in order to create a myriad of user-driven options that simultaneously enhance user experience and operator profits.”

Strategy Analytics analyzed twelve independent vendors that deliver high performance policy solutions and represent investment opportunities in this report: Allot (ALLT), Arbor Networks, Bridgewater (BWC.TO) now AMDOCS(DOX), Broadhop, Bytemobile, Cisco (CSCO), Openet, Procera (PKT), Continuous Computing now Radisys (RSYS), Sandvine (SVC.TO), Tekelec (TKLC) and Volubill. Additionally, several vendors have already been snapped up by larger vendors, i.e. Camiant by Tekelec and Starent by Cisco. Recently, Radisys has acquired Continuous Computing and AMDOCS acquired Bridgewater. More consolidation is on the way as this ‘butterfly’ flaps its wings and changes both cost and revenue projections for the telecommunications industry.

For a complimentary Executive Summary of this report, please contact Sue Rudd at srudd@strategyanalytics.com