Mobile broadband deployments have revolutionized modern Carrier networks. The emergence of massive volumes of Internet applications, however, has made it clear that they cannot simply remain pipeline providers and that the data traffic and subscriber base deriving from pipelines form the real sources of revenue. The culmination of this trend for Carriers is an inevitable shift from service-oriented to subscriber-oriented networks, one key process of which is SDM. This creates opportunities for new and/or highly focused services/applications, revenue expansion, and improved customer loyalty and profitability. However, access to subscriber data is often a challenge for network Carriers. This is due largely to subscriber data being stored in a non-unified distributed architecture comprising a variety of different network elements and services, often vendor-specific, which makes it costly to attain a consolidated view of the data.
The continued deployment of LTE networks and small cells will play a critical role in maintaining the SDM market’s growth, amid a growing demand of convergent, intelligent and vendor agnostic SDM platforms by Carriers.
Mind Commerce estimates that with SDM carriers can save up to 40 % in OpEx in contrast to legacy mechanisms for managing subscriber data. In addition to OpEx savings, SDM solutions allow carriers to reduce churn rates by enabling carriers to personalize their services, improve marketing campaigns, and thereby improve revenue by gaining rich customer insights. As carriers continue to invest in network modernization and migrate networks towards LTE, vendors from both telecommunications and IT centric database backgrounds are intensively competing to gain a share of the SDM market. As a consequence, we expect SDM vendor revenues to surpass nearly $ 3 Billion by the end of 2016.
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