Mobile growth spurs strong Diameter signaling controller revenues, says Infonetics

Mobile device traffic growth is fueling demand for Diameter signaling controllers, with revenues forecast by Infonetics Research to increase at a 54 percent compound annual growth rate (CAGR) through 2018.

In 2013, Diameter signaling controller revenues doubled, following a 900 percent year-over-year increase in 2012, according to Infonetics data.

Diameter is one of the two signal protocols that handle most of the communications in IP multimedia subsystem networks; the other is SIP. Diameter handles the data signaling for mobile devices, while SIP handles message signaling for VoIP and video conferencing, according to a white paper (.pdf) by Sonus Networks.

Diameter signaling controllers are primarily used to centralize data traffic routing, but they are also used for roaming via a Diameter Edge Agent and for charging rules function binding, explains Infonetics. Areas for product development this year include virtualization and integration of the interworking function.

"The vendor landscape continues to shift with acquisitions and new entrants…As exploding traffic from mobile devices, smartphones and machines further vexes mobile operators, we expect competition in the Diameter signaling controller market to intensify in 2014," notes Diane Myers, principal analyst for VoIP, UC and IMS at Infonetics.

Oracle is the leading vendor in the Diameter signaling controller market, as a result of its Tekelec and Acme Packet acquisitions, followed closely by F5 Networks and Huawei. Other vendors include Alcatel-Lucent, Amdocs, Comptel, Ericsson, Openet and Ulticom.

In 2011, North America controlled close to 80 percent of the Diameter signaling controller market, but the Asia Pacific region caught up to North America in 2012 and Europe, the Middle East and Africa surged in 2013 due to deployment of 4G LTE in these regions.

For more:
- see the Infonetics stats
- download the Sonus white paper (.pdf)

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