Telecom Billing And Revenue Management Market

Telecom Billing And Revenue Management Market Outlook (2023 to 2033)

The telecom billing and revenue management market size is estimated to be worth US$ 15.96 billion in 2023. With a projected CAGR of 9.7% for the next ten years, the market is likely to reach a valuation of nearly US$ 40.40 billion by the end of 2033. The recent surge in demand for various telecommunication services has triggered the demand for Telecom Billing and Revenue Management.

Telecom billing and revenue management are crucial in efficiently operating communication services and debt collection. It involves a comprehensive set of processes that include data utilization tracking, customer payment management, invoice handling, and billing calculations. These solutions are widely adopted by telecommunication service providers and digital service providers to optimize their telecom networks and enhance operational efficiency.

The rapid growth of the telecommunication sector has significantly contributed to the increased demand for telecom billing and revenue management solutions and services. In today's fast-paced digital landscape, the telecom industry faces many challenges that impact operators and subscribers alike. These challenges include the rapid growth of mobile and internet subscribers, a decline in service quality, network congestion, and disruptive service interruptions. To combat these effects and ensure a seamless customer experience, telecom companies are proactively investing in advanced telecom billing and revenue management solutions and services.

This growth, however, has also posed challenges as the implementation of advanced services and the expanding customer base have put a strain on existing network charging systems. Consequently, there is a pressing need to address these challenges and improve the effectiveness of telecom billing and revenue management to ensure seamless operations and customer satisfaction.

Recognizing the importance of identifying customer profitability and value, organizations are increasingly focusing on implementing unified workflows and automated payment processing solutions. This strategic approach enables them to not only detect and mitigate revenue leakages but also streamline their billing processes for maximum efficiency.

As the telecommunications industry continues to evolve, communication service providers are recognizing the need to transform their systems to offer agile solutions, drive service innovation, and provide superior customer experiences at a more cost-efficient level. Telecom billing and revenue management play an increasingly important role in this transformation. This enables CSPs to foster greater loyalty and value in their customer relationships.

With advanced telecom billing and revenue assurance solutions, smart revenue sharing among partners becomes possible. This has reduced total ownership costs, strengthened business relationships, and faster time-to-market. Consequently, these advancements contribute to improved revenue collection. Moreover, operators are actively embracing new business models that involve forging partnerships with innovative service providers and content aggregators, such as Over-the-Top (OTT) providers, further expanding their offerings and market reach.

Sales Analysis of Telecom Billing And Revenue Management From 2018 to 2022 Vs Market Outlook for 2023 to 2033

The global market for Telecom Billing and Revenue Management expanded at a CAGR of 7.6% during 2018 to 2022. The market growth is projected to be augmented by the increased cohort of telecommunication services users. Besides, the surge in the various network providers transitioning to the 5G network services expedites the requirement of Telecom Billing and Revenue Management in the forthcoming years.

The global Telecom Billing and Revenue Management market is predicted to surge ahead at a CAGR of 9.7% and record sales worth US$ 40.40 billion by the end of 2033. US will continue to be the largest market throughout the analysis period accounting for over US$ 7.3 billion absolute dollar opportunity in the coming 10-year epoch.

According to GSMA estimates, by 2025, around 60% of the smartphone unit sales will be compatible with e-Sims, with around 2-3 Billion smartphone connections across the world using e-Sims. All these attributes are anticipated to be advantageous to the revenue growth through Mobile Operators Segment.

Category-wise Insights

The Unmatched Dominance of Software Solutions in Telecom Billing and Revenue Management

The billing processes have become more intricate with the advent of new technologies and services in the telecom industry, such as 5G, IoT, and cloud-based solutions. Software solutions provide the flexibility and scalability required to handle complex billing scenarios efficiently.

Software solutions automate billing and revenue management tasks. They minimize errors and reduce the need for manual intervention. Telecom operators offer innovative pricing models. These include dynamic pricing, personalized plans, and real-time charging.

Software solutions enable real-time rating and charging. They help operators monetize services effectively and improve customer experiences. Advanced software solutions have robust analytics and reporting capabilities. They provide valuable insights into billing processes, customer behavior, and revenue streams for telecom operators.

Internet Service Providers Forge Ahead, Dominating the Telecom Billing and Revenue Management Market

With the increasing reliance on the Internet for various activities such as communication, entertainment, e-commerce, and cloud services, the demand for broadband and internet services has skyrocketed. Internet service providers have experienced significant growth in their customer base, leading to increased billing and revenue management requirements.

Internet services are typically billed based on usage, such as data consumption or bandwidth utilization. Internet service providers need accurate metering and rating capabilities to track and bill customers based on their actual usage. This requires advanced billing systems that can handle large volumes of usage data and generate accurate invoices accordingly.

Internet service providers often employ complex billing models. These models cater to the diverse needs of their customers. Internet service providers offer various pricing plans based on bandwidth, data usage, speed tiers, and bundled services. They often have different billing cycles and billing methods (prepaid or postpaid). Internet service providers also have distinct billing structures for residential and enterprise customers. Managing these complexities effectively requires sophisticated billing and revenue management solutions.

How Is Telecom Billing And Revenue Management Demand Expected To Perform With Their Growing Necessity In On-Premises Segment?

It is anticipated for the On-Premises Segment by Deployment Type of the Telecom Billing and Revenue Management Market to experience an accelerated CAGR of 9.2% in the forthcoming years. Among the key attributes being beneficial to this segment are the ready availability and reusability of the infrastructure, thus helping save the cost associated with significant infrastructural change.

The on-premises segment by deployment type is popular among large enterprises as they additionally provide them with the ability to have enhanced control over system and data coupled with a dedicated staff for IT support and maintenance.

Furthermore, the data security concerns associated with the On-Premises segment by deployment type of the Telecom Billing and Revenue Management Market tend to be minimal. All these attributes are anticipated to be advantageous for the On-Premises segment in the upcoming 10-year epoch.

Sudip Saha

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

Region-wise Insights

Why does Asia-Pacific Stand as the Most Lucrative Market for Telecom Billing and Revenue Management Market?

In the forthcoming years, Asia-Pacific is estimated to be extensively lucrative for the Telecom Billing and Revenue Management Market. According to a recent report, published by the Global System for Mobile Communications, by 2025, the total volume of 5G mobile users will be 400 Million, illustrating 14% of the total mobile subscription in Asia-Pacific, specifically in the countries including Japan, South Korea, Singapore, and Australia. As of 2021, in Japan, NTT DOCOMO is providing 20 GB for US$ 22.1 (3000 yen), following the government’s advice of introducing price cuts.

These price cuts have in turn paved the way for increasing the rate of 5G adoption among Japanese customers, which is advantageous to the Telecom Billing and Revenue Management Market.

As of April 2022, the customer cohort of the Telecom sector in India makes up a total of 1.2 Billion subscribers, including both wireless and wireline services, making it the second-largest around the globe. A recent report notes, that of the total FDI inflows, with a contribution of around 7%, the telecom industry makes up the third largest industry. It further states that the country is aiming for producing mobile phones worth US$ 126 Billion by 2026.

A report released by the Ministry of Industry and Information Technology in China states that as of 2021, the telecom sector in China grew 8% year on year to reach a total valuation of 1.5 Tn yuan (US$ 232.43 Billion).

The ministry further estimates that this pinnacle is achieved from the involvement of digital services like cloud computing, data, and big data centers. The report further stated that these digital services have contributed to 44.5% of the telecom sector’s revenue in 2021.

As of 2021, the country had approximately 1.4 Million 5G base stations, which make up 60% of the global 5G network. It is forecasted that these attributes will aid in propelling the Telecom Billing and Revenue Management Market in China to account for a CAGR of 8.8% by the end of 2032.

How is the Telecom Billing and Revenue Management Market in North America Shaping Up?

It is anticipated that during the forthcoming years, the telecom billing and revenue management market share of North America will be nearly 40% throughout the analysis period. In June 2022, Emersion Systems decided to accelerate its presence in North America.

Taking into account an article published by the GSMA, the United States has four main carriers, enabling network infrastructure services to around 139 MVNOs that are serving over 36 million active customers. Among the contributing factors is the United States FCC (Federal Communications Commission) Lifeline Program will enable low-income customers to have access to all the opportunities and security associated with phone service.

All these attributes are anticipated to work towards propelling the Telecom Billing and Revenue Management Market in the North-American region in the forthcoming years.

Country-wise Insights

What Role is the United States Expected to Play in the Global Telecom Billing and Revenue Management Demand in the Forthcoming Years?

The recent Infrastructure Investment and Jobs Act (IIJA) that was passed in November 2021, provides an extensive investment of approximately US$ 65 billion to be used for the deployment of broadband.

The bulk of this investment is aimed toward the Broadband Equity, Access, and Deployment (BEAD) Program to be distributed between states and territories for financing broadband deployment by the National Telecommunications and Information Administration (NTIA). This act is anticipated to expedite the Telecom Billing and Revenue Management Industry extensively in the forthcoming years by expanding telecommunication infrastructure.

Taking into account statistics from a recent survey, by 2025, smartphone users in the United States are projected to increase to approximately 311.5 million. As of July 2022, four noteworthy bills associated with the telecommunications sector have been approved by the United States House of Representatives, a development that subsequently works to benefit the Telecom Billing and Revenue Management Industry.

The adoption of cloud-based solutions is a key trend in the United States telecom billing and revenue management market. Telecom operators in the United States are increasingly migrating their billing and revenue management systems to cloud-based platforms.

What Ongoing Happenings are Influencing the Germany Telecom Billing and Revenue Management Market?

One of the primary and technologically sophisticated telecom sectors in Europe is found in Germany. The nation provides its residents with extensive coverage and fast access because of its well-developed infrastructure. German telecom service providers struggle to control intricate invoicing procedures and guarantee precise revenue management. The need for telecom billing and revenue management systems has been constantly increasing to meet these difficulties.

The market in Germany is expected to continue its growth trajectory in the coming years. The main factors influencing market development are the rising need for sophisticated billing systems, the rollout of 5G networks, and the emphasis on the customer experience. The industry's future is also projected to be shaped by the consolidation of services and the adoption of cloud-based and analytics-driven solutions.

Are Telecom Operators in Japan Prioritizing Customer Experience in Billing and Revenue Management?

Telecom companies in Japan are increasingly moving away from conventional on-premises billing systems and toward cloud-based ones. Operators can handle rising data volumes and swiftly roll out new services because of the scalability, flexibility, and cost-effectiveness of cloud-based billing and revenue management solutions.

In Japan, the rollout of 5G networks has raised the demand for sophisticated billing and revenue management systems that can handle the higher complexity and data quantities associated with 5G services. To enable creative pricing strategies and revenue potential, telecom operators are attempting to combine their current billing systems with 5G infrastructure. Therefore, the Japan telecom billing and revenue management market is projected to experience significant growth and transformation.

Are Subscription-based Business Models the Future of Telecom Billing and Revenue Management in the United Kingdom?

The United Kingdom telecom billing and revenue management market has witnessed significant growth lately. A powerful digital change is taking place in the United Kingdom across several sectors, including telecoms. To improve customer experience, cut expenses, and increase revenue collection, United Kingdom telecom businesses are putting more emphasis on simplifying their billing and revenue management procedures.

The United Kingdom telecom market is seeing a rise in the need for personalized billing experiences such as itemized billing, self-service portals, and real-time use tracking. In this country, telecom providers are significantly moving toward business models based on subscriptions, such as bundles of services and pay-as-you-go contracts. This change necessitates flexible billing and revenue management systems that can deal with intricate pricing schemes, recurrent charges, and precise revenue recognition.

How are Telecom Operators in China Transforming Billing Systems to Meet Digital Demands?

Leading telecom companies in China have been at the forefront of the implementation of 5G, actively extending their 5G networks throughout the nation. Telecom billing and revenue management solution suppliers now have a chance to offer cutting-edge systems that can manage the increasing complexity and varied service offerings connected with 5G technology.

The adoption of cloud-based billing solutions is expected to increase in China's telecom industry. The transition to cloud-based billing systems is anticipated to allow operators to quickly launch new services, improve consumer experiences, and increase operational agility. Hence, the China telecom billing and revenue management market is projected to witness significant growth driven by digital transformation, 5G adoption, and evolving customer expectations.

What Does the Future Hold for India Telecom Billing and Revenue Management Market?

The need for data services is expected to grow as smartphone adoption, and internet usage in India continue to rise. India's 5G network deployment is about to change the telecom sector. To meet the specific needs of 5G networks, telecom operators are modernizing their billing and revenue management systems as part of their preparations for the rollout of 5G technology.

Telecom operators now have the opportunity to incorporate payment solutions into their billing systems. This enables consumers to pay their bills without interruption. The Indian government's drive for digital payments and the explosive expansion of mobile wallets and Unified Payments Interface (UPI) platforms make this possible.

Competitive Analysis

Amdocs, Netcracker Technology (NEC Corporation), CSG Systems International, Oracle Corporation, Hewlett Packard Enterprise, Enghouse Networks (Enghouse Systems Ltd.), BearingPoint (BearingPoint Europe Holding B.V.), Zuora Inc., Apptus, Subex Ltd., Mahindra Comviva, Cerillion, Optiva, Huawei, Sterlite Technologies, Tecnotree, Emersion Systems (Novatti Group), CommScope Holding Company Group Inc., and Intracom Telecom are among the key players worldwide driving the competitive landscape of the market.

To expand their product portfolio and simultaneously capitalize on the growing market demand, many of these companies are adopting strategies such as mergers, acquisitions, and partnerships.

Some of the key developments in the telecom billing and revenue management market include:

• In March 2023, Spectrum Enterprise, a division of Charter Communications, and Netcracker Technology announced an expanded partnership. Spectrum Enterprise, a national supplier of scalable fiber technology solutions, selected Netcracker Revenue Management as its solution. This partnership allows Spectrum Enterprise to serve its customers from a single billing platform, improving efficiency and customer service.
• In January 2023, Ericsson and Ooredoo Kuwait collaborated. They implemented Ericsson billing across their networks. The billing system update facilitated competitive marketing plans for 5G products. It also enabled 5G evolution across Ooredoo Kuwait's network.
• In July 2022, a partnership was announced between CommScope Holding Company Inc. and Microsoft Inc. to create converging private wireless solutions. The company is working with Microsoft’s Azure Private MEC to combine its CBRS access points. The rationale behind this conceptualization is the ability of this cloud-connected, private wireless network to enhance the efficiency of its operations coupled with agility in manufacturing.
• In June 2022, Altice (Altice Europe N.V.) declared that the Netcracker Cloud BSS and Professional Services of Netcracker Technology, a subsidiary of the NEC Corporation, was chosen as a provider for the SaaS-based solutions having improved capacities relating to revenue management in the company divisions in France, Israel, Portugal, the Dominican Republic and the USA.
• In May 2022 MYCOM OSI, the SaaS-based cloud network and service assurance solutions provider, headquartered in the United Kingdom was announced to be obtained by Amdocs. This decisive arrangement is estimated to be advantageous for the expansion of the firm’s network portfolio for the inclusion of network orchestration and end-to-end service.
• In November 2021, Reinvent Telecom, SIP Trunking, and contact center cloud communications solutions formed a partnership. They introduced a brand-new private-label billing platform. The platform is powered by the OneBill intelligent revenue-management platform.

Key Segments Covered In Market Survey

The Telecom Billing and Revenue Management Market is segmented based on solution, telecom operator type, deployment type, and region.

By Solution:

• Software
  • Mediation
  • Billing and Charging
  • Partner and Interconnect Management
  • Revenue Assurance
  • Fraud Management
• Services
  • Professional Services
  • Managed Services

By Telecom Operator Type:

• Mobile Operators
• Internet Service Providers
• Satellite Communication Providers
• Cable Network Providers

By Deployment Type:

• Cloud
• On-Premises

By Region:

• North America
  • The USA
  • Canada
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
• Europe
  • Germany
  • United Kingdom
  • France
  • Russia
  • Italy
• The Middle East and Africa (MEA)
  • South Africa
  • Saudi Arabia
  • UAE
  • Nigeria
  • Egypt
• Latin America
  • Mexico
  • Brazil
  • Argentina
  • Colombia