IDC Forecasts the Worldwide Mediation Software Market Will Surpass $1 Billion by 2005

FRAMINGHAM, MA – MARCH 29, 2001 – The future of mediation looks bright. According to IDC, worldwide mediation software revenues will increase a substantial 67% in 2001. Over the forecast, worldwide revenues will increase at a compound annual growth rate (CAGR) of 52%, 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%. By comparison, U.S. revenues will increase at a CAGR of 48% during this same time.

IDC believes the highly competitive atmosphere within this immature market makes it impossible to determine which vendors will become market leaders. However, partnerships, competitive differentiation, penetration to international markets, and standardization of mediation and network data technologies will go a long way in separating the winners from the losers. "Visibility, customer references, and alliances – along with fundamental factors such as technological capability – will define market leaders during this growth period," Toros said.

IDC’s recently published report, Mediation Market Analysis and Forecast, 2000-2005 (IDC #B24111) analyzes the emerging IP mediation software market. This report overviews the IP billing industry, explores the role of the mediation function in next-generation networks, and discusses the different mediation technologies. The report further examines the competitive landscape within the mediation industry, different vendors with distinct positioning, and market opportunities and trends.

To purchase this report, contact Bruce Atlas at 1-800-343-4952, extension 4053, or at

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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