Telecom operators have been busy in recent years throwing out diverse rate plans in order to entice increasingly fickle consumers and outmaneuver their rivals. These moves have put tremendous stress on LTE Diameter signaling traffic, which is expected to explode over the next five years.
According to a new report, “Oracle Communications LTE Diameter Signaling Index, Fourth Edition,” LTE Diameter signaling traffic is predicted to grow at a 68% compound annual growth rate through 2019, with total Diameter traffic surging from 30 million messages per second in 2014 to 395 million MPS by 2019. Oracle notes that growth will push Diameter signaling traffic past total global IP traffic over that time frame, putting a substantial burden on wireless carriers to bolster their Diameter signaling platforms.
“As [communications service providers] continue implementing LTE networks, they must effectively manage the resulting Diameter signaling traffic in capacity planning. Ignore it, and CSPs risk network outages or over-provisioning,” said Greg Collins, founder and principal analyst at Exact Ventures, in a statement tied to the Oracle study. “With the massive growth that Oracle is forecasting … CSPs should focus on implementing a Diameter signaling infrastructure that is scalable and reliable to cost-effectively control and route signaling traffic.”
The Oracle report cites a handful of application areas expected to generate healthy increases in Diameter signaling traffic, including:
• LTE Broadcast, which Oracle states is the fastest-growing generator of Diameter signaling traffic on track to rack up 49.5 million MPS by 2019. “The technology is just emerging, and continued growth is expected as CSPs trial LTE Broadcast for everything from digital signage to live video feeds at sporting events,” Oracle notes.
• Policy, which is the main driver of Diameter signaling traffic and expected to create 277 million MPS by 2019. “With more sophisticated policy use cases, the number of Diameter transactions between policy enforcement points and charging has increased,” Oracle said.
• Voice over LTE, which is expected to post a 49% Compound Annual Growth Rate by 2019, generating 43.1 million MPS.
Breaking down predicted Diameter signaling growth by region, Oracle predicts developed markets will be the biggest overall drivers of traffic, although developing markets will see the most dramatic increases in overall traffic generated.
Asia-Pacific is expected to post the most Diameter signaling traffic by 2019, with the region generating 188 million MPS at a 78% CAGR. Oracle also notes the region will lead in VoLTE signaling, generating 19.9 million MPS by 2019, at a 55% CAGR.
North America was cited by Oracle as “beginning to mature in Diameter signaling traffic,” and is predicted to generate 82.9 million MPS by 2019, although with growth slowing to a 42% CAGR. Europe is expected to be a close No. 3, generating 78.7 million MPS within the next four years.
Of the regions expected to post the most dynamic growth, Oracle noted Latin America and the Caribbean will see a 118% CAGR by 2019, with overall Diameter traffic hitting 15.4 million MPS. The Middle East and Africa are expected to post slightly lower growth with a 103% CAGR, through overall traffic forecast to hit 29.8 million MPS by 2019.
Check out more insight into the Diameter signaling market by downloading RCR Wireless News’ latest feature report: “Diameter to be tested by data, VoLTE demand; evolve in a NFV, SDN, cloud world.”
Also, check out our webinar on the topic here.
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