Product Type: Market Research Report
Published by: Pyramid Research
Published: April 2008
Product Code: R8-576Description The rapid transformation of network usage and consumer behaviors has telecom service providers in a
painful bind. The pressure to innovate is rising, and category distinctions like voice-data, wirelinewireless
and fixed-mobile seem positively archaic. The universe of business models — monthly flat
tariffs, per-byte charges, advertising fees — is up for grabs. These are the market trends that have
given rise to IP Multimedia System (IMS), a service delivery architecture that is, paradoxically, both
nascent and embraced broadly by both service providers and infrastructure vendors.
There is plenty of controversy about fundamental issues surrounding IMS. What, exactly, is the value
proposition for service providers to adopt the architecture: Reducing Capex or Opex? Increasing
revenue? Where does legacy infrastructure fit? Will standards ever mature? The report IMS Market
Opportunities: From Standardization to Implementation examines these questions and many more.
The report analyzes the current status of IMS, evaluating the enabling business and content delivery
models. It discusses the timeline for standards development in light of both demand drivers and risk
factors, and provides an adoption timeline, on which we base our estimate of the size of the IMS-based
services market and forecast revenue for IMS equipment and software. The assumptions underlying all
of our estimates are discussed in detail. Key findings we publish in this report include the following:
- As standards bodies, platform vendors and service providers reach a critical mass of consensus
around architectures, security and broad service categories, IMS standards will mature.
- Service innovation will drive IMS equipment demand, but this will be unevenly distributed
between markets.
- Service providers look at IMS as more than an enabler of innovative Web-based offerings.
Forecasts of developments pay particular attention to the strengths and challenges of individual
players, and the report looks at representative service providers such as BT, Com Hem and Vodafone
that are pursuing distinct IMS adoption strategies. It also examines the opportunities available to
telecom equipment vendors and what they are doing to capitalize on upcoming standards
developments, with sections on issues such as market entry opportunities and product functionality.
Vendors discussed range from Alcatel-Lucent and Ericsson to Acme Packet, Iperia and Redknee.
To cap off the report, a forecast of global revenue from IMS-based services is provided for 2007-2012,
as is a forecast of global revenue from IMS-compliant equipment.
Key questions answered
- When will IMS standards development reach a level that encourages significant adoption?
- Will the adoption drivers be strong enough to create the momentum IMS needs?
- What are the issues that stand in the way of a mature set of IMS standards?
- How are the various industry bodies dealing with these challenges?
- What benefits, if any, will IMS adoption bring to service providers? To vendors?
- What strategies are vendors pursuing in their quest to grab this opportunity?
- How much revenue will IMS-based services generate by 2012?
- How large will the market for IMS-compliant equipment be in 2012?
Table of Contents
- Acronyms and abbreviations
- Companies mentioned in this report
- Executive summary
- Section 1: The state of IMS today
- 1.1 From obscurity to dominant paradigm
- 1.2 A reference architecture
- 1.3 Controversies
- Revenue increase
- Capex and Opex reduction
- Architecture for an operator-friendly Web?
- 1.4 Early-stage complications
- IPv6 support
- Specification ambiguity
- Open security issues
- 1.5 Interoperability testing adds real-world experience
- 1.6 Implementations are predictably diverse
- Section 2: The current state of IMS standards
- 2.1 Restructuring the standards arena
- 2.2 Many forums, a single vision
- 3GPP
- 3GPP2
- ITU-T
- IETF
- ETSI
- OMA
- CableLabs
- The need for rationalization prompts creation of Common IMS
- Section 3: Service provider strategies
- 3.1 The new network paradigm
- 3.2 Plight of the service provider
- 3.3 A services metastrategy
- AT&T
- KPN
- Telefónica
- Smaller operators
- 3.4 IMS adoption strategies: holistic vs. opportunistic
- Verizon Wireless
- Deutsche Telekom
- BT
- Com Hem
- Vodafone
- Arcor
- Other service providers
- Section 4: Equipment vendor strategies
- 4.1 New market orthodoxy, constant market growth
- 4.2 Legacy vendors focus on protecting investments
- 4.3 New entry opportunities
- 4.4 The product functionality challenge
- 4.5 Vendor profiles
- Incumbents : Alcatel-Lucent, Cisco Systems, Ericsson, Nokia Siemens, Nortel
- Niche players and new entrants: Acme Packet, BEA Systems, Huawei, Iperia, Italtel, RadiSys,
- Redknee, Sonus Networks, Veraz
Section 5: Resolution to the IMS Standards Debate in 2009 Will Unleash Significant Opportunity for Service and Equipment Revenue Growth
5.1 New releases will bring IMS to a pivotal point — stability
5.2 Service revenue gathers momentum
Definitions
5.3 Equipment revenue
- Definitions
- Related resources
Table of exhibits
Exhibit 1: Overview of IMS architecture
Exhibit 2: The discrete functional components of each service layer
Exhibit 3: Principal IMS standards organizations
Exhibit 4: Common IMS — some key standards
Exhibit 5: Key issues of Common IMS
Exhibit 6: IMS market maturity, demand drivers and risk factors
Exhibit 7: Telefónica’s global service strategy
Exhibit 8: Representative IMS adopters by strategy segment
Exhibit 9: BT 21CN architecture
Exhibit 10: BEA Systems’ IMS ecosystem
Exhibit 11: Empirix IMS product functionality mapping
Exhibit 12: Alcatel-Lucent
Exhibit 13: Cisco Systems
Exhibit 14: Ericsson
Exhibit 15: Nokia Siemens Networks
Exhibit 16: Nortel
Exhibit 17: Acme Packet
Exhibit 18: BEA Systems
Exhibit 19: Huawei
Exhibit 20: Iperia
Exhibit 21: Italtel
Exhibit 22: RadiSys
Exhibit 23: Redknee
Exhibit 24: Sonus Networks
Exhibit 25: Stratus Technologies
Exhibit 26: Veraz Networks
Exhibit 27: Global service revenue, IMS-enabled and non IMS-enabled, 2006-2012
Exhibit 28: Growth in IMS systems revenue globally 2006-2012
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