SOURCE: Oracle Corporation

Oracle Corporation

September 30, 2014 11:02 ET

Personalized Plans and New LTE Video and Voice Services Drive LTE Diameter Signaling Growth

Japan and Asia Pacific Market to Overtake North America as World's Largest Generator of LTE Diameter Signaling Traffic in Two Years

SAN FRANCISCO, CA--(Marketwired - Sep 30, 2014) - -- ORACLE OPENWORLD, SAN FRANCISCO -- Oracle (NYSE: ORCL)

News Summary
Personalized data plans and new long term evolution (LTE) video and voice services will continue to fuel strong LTE Diameter signaling traffic growth through 2018. According to the third annual Oracle Communications LTE Diameter Signaling Index, global LTE Diameter signaling traffic will increase at a 78 percent compound annual growth rate (CAGR) from 2013 to 2018 -- from 12 million messages per second (MPS) to nearly 216 million MPS. The index shows communications service provider (CSP) executives, network architects, and engineers how new personalized digital lifestyle, video, and voice services offered on LTE networks will generate unprecedented volumes of LTE Diameter signaling messages.

News Facts

  • Oracle today released the third annual Oracle Communications LTE Diameter Signaling Index, which identifies network policy and charging as the primary driver of LTE Diameter signaling messages. According to the index, policy and charging MPS will double each year from 2013 to 2016, and will account for 72 percent of LTE signaling volumes in 2018. Further, the Global mobile Suppliers Association (GSA) predicts more than 350 LTE networks by the end of 2014, up from 267 at the end of 2013.
  • Diameter is the signaling protocol CSP network equipment uses to deliver personalized digital lifestyle services. Diameter messages enable subscriber network access, LTE Broadcast services, Voice over LTE (VoLTE), accurate charging and usage-based services, and secure interconnection with roaming and content partners. Diameter is essential for authorization, authentication, policy, charging, and mobility management. The definition of the Diameter protocol continues to expand as new applications are developed and new interfaces are defined to support 3G networks.
  • The Oracle Communications LTE Diameter Signaling Index revealed that from 2013 to 2017, VoLTE will be the #2 source of global LTE Diameter signaling traffic, and by 2018, LTE Broadcast will grow beyond 26 million MPS.
  • Beyond 2018, Oracle Communications expects robust LTE Diameter growth. In addition, core network evolution in the areas of network functions virtualization (NFV) and software-defined networking (SDN) will create additional needs for orchestration using Diameter.
  • North America will be the largest generator of LTE Diameter signaling MPS until 2016. However, in 2018 Japan and Asia Pacific LTE Diameter MPS will reach nearly 105 million -- 77 percent more than North America and 49 percent of the global total.
  • Europe, Middle East, and Africa (EMEA) show strong growth potential but are the third largest region in terms of signaling volume, at nearly 47 million MPS in 2018.
  • The index takes into account Diameter messages generated from:
    • Communications among policy servers, charging systems, subscriber databases, and gateways to support innovative mobile data plans
    • Mobility management functions, including subscriber authentication onto networks and roaming between partner networks
    • LTE Broadcast rollouts in key regions to support mobile video
    • VoLTE implementations worldwide to support new voice services with IMS

Supporting Quotes

  • "The rapid growth of LTE and the corresponding increase in subscribers' data consumption show how service and content providers are meeting people's needs. We are in the early stages of LTE innovation, and new video and voice offerings will further propel LTE into the mainstream and require a scalable and reliable underlying Diameter signaling infrastructure," said Bhaskar Gorti, senior vice president and general manager, Oracle Communications.
  • "Voice over LTE has achieved a critical mass of service provider deployments, and interest in LTE Broadcast is increasing. Service providers that wish to lead their markets with innovative voice and video offerings must anticipate their traffic demands and unique signaling requirements," said Dimitris Mavrakis, principal analyst of intelligent networks at Ovum.

Forecast Methodology
The Oracle Communications LTE Diameter Signaling Index calculates LTE Diameter MPS based on assumptions relevant to LTE services such as third-party LTE subscriber forecasts, subscriber behaviors, policy sessions, online and offline charging interactions, and the adoption of voice and video services on LTE.

3GPP and GSM Association standards and documentation are used to establish Diameter traffic profiles. Oracle validates these assumptions in its Diameter Signaling Lab and incorporates this information into the Oracle Communications LTE Diameter Signaling Index Calculator available to service providers to forecast Diameter signaling traffic growth on LTE and 3G networks. 

The index bases LTE Diameter signaling traffic numbers on forecasts of LTE subscribers, LTE penetration rates, LTE device penetration rates, and LTE voice and video services. Data sources include forecasts from Ovum's World Cellular Information Service and the GSA.

Usage and Citation
Oracle permits media, financial and industry analysts, service providers, regulators, and other third parties to cite our research with the following attribution: "Source: Oracle Communications LTE Diameter Signaling Index: Forecast Report and Analysis 2013-2018."

Supporting Resources

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