Telecom Billing & Revenue Management Market Size, Share & Trends Report

Telecom Billing & Revenue Management Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Deployment Model, By Operator Type, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-816-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 110

Report Overview

The global telecom billing and revenue management market size was valued at USD 13.0 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.6% from 2020 to 2027. Telecom billing and revenue management is the process that involves communication services and management of the debt collection. The process encompasses providing information about data utilization, managing the customer’s payments and invoices, and calculation of billing and charging information. These solutions are widely used by the telecommunication services providers and digital service providers for enhancing their operational efficiency by optimizing the telecom networks. The growth in the telecommunication sector is anticipated to be a major factor accountable for the increased demand for telecom billing and revenue management solutions and services during the forecast period. With the growing telecom sector, the implementation of advanced services and a growing customer base has generated a burden on existing network charging systems.

Asia Pacific telecom billing & revenue management market size

Additionally, the rapid on-going growth of mobile and internet subscribers, drop in quality of services, network congestion, and fallout of services are some of the challenges faced by both telecom operators and subscribers. To counter these effects, telecom companies are investing in telecom billing and revenue management solutions and services. The rising importance of identifying profitability and value that a customer brings to the enterprise and increasing preference for detecting and mitigating revenue leakages with unified workflows and automated payment processing solutions by organizations is expected to further accelerate the growth of the market.                                    

Telecom billing and revenue management solutions keep an account of the information that flows through the network when a customer uses various services of a telecom company. Over the years, the telecom market has changed dramatically, and the industry persists to build-up due to a constant rise in the number of customers. At the present time, the proficiency of the telecom billing and revenue management system is a crucial facet for telecom companies. Creating value to the customers or increasing customer loyalty, billing, and revenue management has a vital role to play. For this reason, the companies that provide telecom services need organized business solutions and related services that cover every part of their business and delve into ways to detect frauds and discover revenue leakage to deliver high-quality services to its customers.

In addition, as the communications, media, and cloud markets are undergoing significant transformations, service providers are witnessing new challenges that require new strategies. Service providers are facing significant business challenges on various fronts such as increased competition on a national as well as on an international level, erosion of customer loyalty due to decreasing margins for traditional service offerings, and commoditization of services. To compete in this new business environment, service providers are required to transform their businesses to meet the new market demands. As a result of this, there has been an augmented demand for telecom billing and revenue management solutions and services worldwide that help service providers to cater to the rising number of customers in an efficient way. This, in turn, is expected to boost the growth of the market for telecom billing and revenue management in the foreseeable future.

Moreover, with state-of-the-art telecom billing and revenue management capabilities, the communication service providers require to evolve their systems to provide agile solution and service innovation and superior customer experience with greater cost-efficiency. The role of telecom billing and revenue management is becoming more important as CSPs look to create greater loyalty and value in their customer relationships. Telecom billing and revenue assurance solutions allow smart revenue sharing among partners, thus reducing the total cost of ownership, enhancing business relationships, and offering a fast time-to-market, which eventually leads to better revenue collection. Furthermore, operators are embracing new business models with innovative services and new partners, such as Over-the-Top (OTT) service providers and content aggregators.

Component Insights

The solutions segment dominated the market for telecom billing and revenue management with a share of 67.8% in 2019. This high share is attributable to the growing adoption of telecom billing and revenue management solutions and multiple benefits offered by them. The solution segment is further sub-segmented into mediation, billing and charging, revenue assurance, fraud management, and others. The telecom billing and revenue management providers offer standalone or integrated telecom billing and revenue management software solutions. These solutions help operators evaluate, optimize, and analyze each phase of the billing life cycle. It helps in providing complete insights and intelligence into the revenue relationships of service providers and customers. Under the solution offerings, the billing and charging management solution held the largest revenue share in 2019 and is projected to continue its dominance in the market for telecom billing and revenue management over the forecast period.

Furthermore, the services segment is expected to witness a substantial growth rate of 14.2% over the forecast period. The services segment is further segmented into professional services and managed services. These services help telecom operators and customer service providers to achieve better control, improved operational efficiency, and enhancement over processes. The telecom billing and revenue management services also help companies in improving overall profitability.                                                          

Deployment Model Insights

The on-premises deployment model dominated the market for telecom billing and revenue management with a revenue share of 72.5% in 2019. This high share is mainly attributable to increasing investments by large enterprises for in-house software deployment. Even though the cloud model has grown in popularity, the on-premises model is the most demanded and preferable deployment model amongst operators. Most telecom operators prefer on-premises systems, as the infrastructure is already present and can be reused, which thereby saves a considerable amount on infrastructural change. Telecom billing and revenue management solutions are available as integrated or as standalone modules, which are primarily deployed on the end-user’s premises. This model involves the procurement of a software license, dedicated hardware, and support and maintenance fees on an annual basis; therefore, this deployment model is prevalent across large enterprises.

The cloud segment is anticipated to witness the highest CAGR of 15.6% during the forecast period. The low investment cost, scalability, and agility offered by cloud deployment model is driving the growth of this segment. Cloud-based telecom billing and revenue management solutions and services have aided operators to continue to look and grow beyond connectivity. The cloud-based solutions provide significant benefits to customers such as reduced costs, increased productivity, and automated business processes, drive innovative products and services, new business models, and new lines of business. Additionally, the increase in the need for mobility and upsurge in the adoption of cloud technology by small scale businesses is expected to provide lucrative opportunities in the foreseeable future.

Operator Type Insights

The mobile operator segment dominated the market for telecom billing and revenue management with a revenue share of 55.0% in 2019. This high share is mainly attributable to the rise in mobile penetration worldwide and high growth in the subscriber base across various regions. The segment is also projected to witness the highest CAGR during the forecast period. Owing to heightened competition, the mobile operator aims at the network, end-user data, and service for delivering optimum service performance and customer experience management. The telecom billing and revenue management solution enables Mobile Virtual Network Operators (MVNOs) and Mobile Network Operators (MNOs) to accelerate their new solution or service releases, backed by the robust revenue-sharing model. It supports automation of business processes and monetizes all MVNO offerings from voice, data, SMS, to the Internet of Things (IoT) services for 3G, 4G, and 5G.

Global telecom billing & revenue management market share

Furthermore, the internet service providers segment is likely to witness a CAGR of 9.0% in the telecom billing and revenue management market during the forecast period. Several telecom companies are taking efforts to develop 5G technology. This trend is expected to provide opportunities to the internet service providers to enhance their telecom billing and revenue management systems. The efforts of internet operators toward the deployment of 5G networks will drive novel service opportunities, compelling the traditional service providers to implement transformational changes to support the revenue stream, thereby influencing the growth of the market for telecom billing and revenue management.

Regional Insights

North America dominated the market for telecom billing and revenue management with a revenue share of 38.2% in 2019. ​​​This high share is mainly attributable to the elevated demand from the telecom sector and the implementation of innovative technologies in the market. Also, the U.S. dominated the market for telecom billing and revenue management in terms of revenue, owing to the adoption of advanced technologies, such as IoT, 5G, analytics, and cloud.

Moreover, the U.S. is one of the most advanced countries in the world in terms of the adoption of technology. The country is known for its innovative and disruptive startups. Also, the presence of some of the prominent players of industry including Oracle Corporation, and CSG Systems International, Inc. is an additional aspect encouraging regional growth. Furthermore, the telecom sector in the region is well-established with strong penetration of telecom solutions and services. The telecom industry in the region generates huge data, which, in turn, is driving demand for telecom billing and revenue management in the region.

In Asia Pacific, the market for telecom billing and revenue management is anticipated to exhibit a CAGR of more than 15.0% over the forecast period. The growth of this region is mainly accredited to improving the needs for innovative billing and revenue management solutions and services. Moreover, the booming telecom industry, increasing data consumption, and mobile penetration have accelerated market growth in the region. China leads the market for telecom billing and revenue management in the Asia Pacific region and is also likely to witness a considerable growth rate in the near future.                                                       

Key Companies & Market Share Insights

The market for telecom billing and revenue management is fragmented in nature and characterized by a high degree of competition among key operating players. The key players are concentrating on improving their market presence by implementing various strategies such as partnerships, mergers and acquisitions, and product development. These strategies help organizations to expand their business geographically and enhance their offerings across the national and international markets.

The industry competition is projected to build up further as several companies are focusing on the development of innovative and cost-effective telecom billing and revenue management solutions and services. Thus, the key players in the market are offering solutions that meet the requirements of the operators. Moreover, some of the players are investing in research and development, entering partnerships, and are growing their footprints across the untapped markets to strengthen their position in the competitive market for telecom billing and revenue management. For instance, in November 2019, Amdocs and AT&T entered into a partnership to upgrade and modernize AT&T’s digital Business Support Systems (BSS) under a multi-year managed services agreement. This partnership has helped AT&T to offer enhanced customer experience and security to its customers. Some of the prominent players in the telecom billing and revenue management market include:

  • Accenture plc

  • AmdocsCorporation

  • Cerillion

  • Comarch SA.

  • CSG Systems International, Inc.

  • Formula Telecom Solutions Ltd.

  • HP Development Company, L.P.

  • Huawei Technologies Co., Ltd.

  • Intracom Telecom

  • Mahindra Comviva

  • Netcracker Technology Corp.

  • Openet Corporation

  • Optiva, Inc.

  • Oracle Corporation

  • SAP SE

  • Sterlite Tech

  • Subex Limited

  • Telefonaktiebolaget LM Ericsson

Telecom Billing & Revenue Management Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 14.5 billion

Revenue forecast in 2027

USD 31.2 billion

Growth Rate

CAGR of 11.6% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, deployment model, operator type, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

The U.S.; Canada; The U.K.; Germany; France; China; India; Japan; Brazil; Mexico

Key companies profiled

Accenture plc; Amdocs Corporation; Cerillion; Comarch SA; CSG Systems International, Inc.; HP Development Company, L.P; Huawei Technologies Co., Ltd.; Netcracker Technology Corp.; Oracle Corporation; SAP SE; Sterlite Tech; Subex Limited; Telefonaktiebolaget LM Ericsson 

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global telecom billing and revenue management market report based on component, deployment model, operator type, and region:

  • Component Outlook (Revenue, USD Million, 2016 - 2027)

    • Solutions

      • Mediation

      • Billing and Charging

      • Revenue Assurance

      • Fraud Management

      • Others

    • Services

      • Professional Services

      • Managed Services

  • Deployment Model Outlook (Revenue, USD Million, 2016 - 2027)

    • On-premises

    • Cloud

  • Operator Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Mobile Operator

    • Internet Service Providers

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • The U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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