Seasonal weakness in 3Q16 caused the PCRF market to drop 8% sequentially to $224 M. The market was up 11% compared to 3Q15. Wireless applications accounted for nearly 90% of the session shipments during the quarter with wireline and cable applications accounting for the remainder. The PCRF market continues to thrive as operators are constantly experimented with different applications and revenue plans, including “zero-rating” different applications. That is, not billing for certain applications or giving certain applications “4G” data while other applications get slower “3G or 2G” data speeds. The number of possibilities are tremendous. We expect strong growth in the market to continue as the number and variety of devices and applications accessing wireless networks will continue to surge.
During the quarter, Huawei and Ericsson continued to be the top vendors with Huawei again claiming the top spot with 36% of the market, up from 30% in 3Q15. Huawei experienced flat revenues on a sequential basis during the quarter, while all other vendors had sequential declines of between 10 and 20%.