Policy server market to hit $1.4 billion in 2014

NEW YORK, USA: Worldwide revenue for policy servers implemented in both fixed line and mobile networks grew 65 percent between 2008 and 2009, and is forecast to reach $1.4 billion by 2014.

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This is according to Infonetics Research first edition of its 2010 biannual Policy Servers market size, share, and forecast report, which tracks fixed line and 3G broadband, WiMAX, and LTE wireless policy server software.

Shira Levine, directing analyst for next gen OSS and policy at Infonetics Research, said: "Wireless is clearly the growth engine driving the policy server market. Mobile operators are increasingly understanding that they can no longer build their way out of the congestion issues created by the uptake of data services, and looking to policy control as a way to not only address the strain on their existing radio access network resources, but also to maximize the value of their upcoming WiMAX and LTE deployments."

Managing bandwidth consumption is and will continue to be one of the greatest drivers for policy server deployments by both the fixed and wireless operators, along with the delivery of value-added services, such as targeted advertising and sophisticated service controls.

Moreover, regulatory factors impact the policy server market, particularly the recently-implemented data roaming regulations in the European Union, and in the United States, the FCC’s stance on net neutrality remains a wild card, as operators push back against potential rules that could affect traffic prioritization.

Operators in emerging markets, particularly Africa, Latin America, Eastern Europe, and parts of Asia, are using policy control capabilities to create innovative loyalty programmes to combat high churn rates, especially in areas where the subscriber base is primarily prepaid.

The Asia Pacific market is the most progressive in terms of consolidating policy across access networks, as operators in this region tend to operate across access verticals and generally lack the legacy infrastructure that can hinder uptake in the US and Western Europe.