Telcos Spending $2 Billion on Network Management

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BOONTON, NJ. April 27, 1999:

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Telephone companies around the world will be spending more than $2 billion this year on TMN-compliant network management hardware, software, and professional services, says a new market research report from Insight Research. Though TMN revenue will continue growing for the next few years, in the longer term TMN-compliant products may become another casualty in the rush to meet competitive demands.

According to Insight's report TMN: The Standard, The Practice, The Markets 1999-2004, the detailed series of standards that make up TMN, and which act as guides to the telephone equipment manufacturers, enable telephone companies to connect and communicate across heterogeneous networks and systems. However, new start-up companies and established carriers alike often consider TMN standards too expensive to build to--the least costly alternative is often deemed "good enough." The compromise of near-compliance to TMN is becoming the modus operandi.

"TMN is very good at supporting a top-down, hierarchical view of the network and its elements," says Robert Rosenberg, president of Insight. "But that hierarchical view, which maps well to a monopoly carrier's operations, makes little sense in today's telecom environment where holding onto the customer is of paramount concern. Carriers are demanding that their network management solutions integrate seamlessly to their customer care functions. While we expect TMN-compliant product revenue to continue growing, other network management standards like CORBA and DCOM will be playing an increasingly important role in the years ahead."

According to Insight, worldwide sales revenue associated with TMN applications reached nearly $1.95 billion in 1998, and will increase at an annual rate of 21 percent to top $5.06 billion by the year 2003. These figures suggest TMN application revenues are growing more than twice as fast as telecommunications service revenues.

Further forecasts of carrier network management are published in TMN: The Standard, The Practice, The Markets 1999-2004, a 300-page market research study. An excerpt of this study is offered online at www.insight-corp.com/tmn99.asp.

Operations Support Systems (OSS) 2002-2007

Wireless Operation Support Systems 2002-2007

Self Provisioning Enterprises and OSSes: Customer Network Management 2000-2005

Donna Savino

at Insight Research

973-541-9600