Worldwide Mediation Software Market Will Surpass $1 Billion by 2005

According to IDC, worldwide mediation software revenues will increase a substantial 67 percent in 2001. Over the forecast, worldwide revenues will increase at a compound annual growth rate (CAGR) of 52 percent, from $130 million in 2000 to over $1 billion in 2005. Driving this market are fast-paced business dynamics, aggressive growth strategies, and innovative technologies.

"Mediation is an emerging market opportunity with significant growth potential that is attracting new ventures," said Levent Toros, Senior Analyst for IDC’s Next-Generation Operational Support Systems program. "The increasing demand for mediation software is highly correlated with the growth and expansion of IP services -- specifically IP billing functions. As a strategic technology tool for communication service providers, mediation will continue to be the center of attention as it provides solutions to some of the frequently encountered needs in network management such as operational efficiency, revenue assurance, and customer care."

According to IDC, mediation is a worldwide opportunity. Although the United States will continue to command a major portion of the mediation market, its worldwide share will start decreasing slightly in 2003. International markets, led by Europe, will outpace U.S. mediation revenues during the forecast, with a 2000-2005 CAGR of 59 percent. By comparison, U.S. revenues will increase at a CAGR of 48 percent during this same time.

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