Hexa Research, based on its recent study of India and China OSS/BSS market, expects the Indian and Chinese OSS/BSS market to reach more than $7 billion by 2020. Key reasons for the same include rapid adoption of telecommunications technology and growing number of subscribers.

Hexa Research found that India dominated the Asia Pacific OSS/BSS market in 2012. Its expected CAGR for the period from 2013 to 2020 is more than 16%. The Indian market is extremely price sensitive. The Average Revenue Per User (ARPU) is on a decline while demand for internet-based services is increasing. Rising emphasis on managing relationship with customers with the aim to retain their loyalty is the main reason for growing investments in OSS/BSS market. Moreover, the development of futuristic systems by service providers will prove beneficial for industry growth. However, regulatory uncertainty and slow rate of adoption of communication standards are factors that may hinder growth of the OSS/BSS market in India.

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Strong growth in the telecommunications industry will drive the Chinese OSS/BSS market to reach more than $3.3 billion by 2020. The availability of budget phones will benefit demand even in periods of economic slowdown. Telecom service providers are increasingly expanding their business offerings to focus on content and internet rather than just voice services. OSS/BSS enables operators to offer convergent billing, centralize customer support, and develop preferential pricing plans.

Hexa Research observes that the India and China OSS/BSS Market is greatly fragmented. Operators are engaged in mergers and alliances with a view to offer a comprehensive range of products and solutions. Few instances of the same include acquisition of Actix by Amdocs for $120 million in 2013 and that of Telcordia by Ericsson for $1.15 billion in 2012.Various types of participants operating in the industry are OSS/BSS providers, IT service businesses, network equipment companies, etc. Key industry players include Accenture, Amdocs, Ericsson and Huawei, among others.

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