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LTE Monetization and OTT Challenges Among Key Reasons Why VoLTE, ViLTE Will Become Operators' Focus Points This Year

LTE Monetization and OTT Challenges Among Key Reasons Why VoLTE, ViLTE Will Become Operators' Focus Points This Year Image Credit: PCC Mobile Broadband

With the rise of the Voice over Mobile Broadband (VoMBB) which encompasses Voice over LTE (VoLTE), Voice over HSPA (VoHSPA) and Voice over Wi-Fi (VoWiFi) and with the advent of Video over LTE (ViLTE), the promise of rich communications via data, especially mobile data, is becoming more evident. Rich communication services (RCS) is expected to enable mobile operators to bundle voice and data on LTE, obviating the need for today's LTE subscribers to roll back to 3G connectivity or launch app-based voice services to make those voice calls. More importantly, RCS will be accelerating the growth of next generation communication services, which are 100% based on data and which will become more and more common in years to come - video calling, video messaging, conferencing and sharing of rich content - thanks to the growing dependence on mobile devices and mobile data connectivity for everyday communication needs. At the same time, widespread global deployments of 4G and LTE-A networks and the ongoing trials of the 5G technology point to the ever growing capacity across data networks, enabling mobile operators to transport unprecedented levels of traffic and content on data, and allowing them to offer richer and wider range of services such as RCS to a growing subscriber base.   

VoLTE in particular, received ample attention last year and is predicted by many leading players in this market to reach the tipping point in 2015 with widespread deployment by mobile operators. Dialogic, Broadforward, DigitalRoute, tyntec, Temasys, Aptilo,Computaris, F5 and Accuris Networks in their 2015 predictions highlighted how VoLTE services will become a recurring theme in mobile operators' strategies for enhancing customer experience, improving network monetization, optimizing their networks and retaining their market competitiveness. Visiongain, a market research company, expects the number of active VoLTE subscriptions worldwide to climb to 101.7 million by end of this year.  At the same time, the VoMBB market is expected to grow by a CAGR of 101.23% from 2013 to 2018, according to TechNavio, a technology research firm, in its forecast for the market. The high growth expected within the VoLTE as well as the VoMBB market mirrors both the mobile operators' shift to IP networks, and the evolution of traditional communication channels into IP-based channels. More significantly, it shows how the LTE services market will continue expanding as mobile operators continue developing their LTE networks. Last year alone, 360 mobile operators commercially launched their LTE service, covering 124 countries, while 49 operators commercially launched their LTE-Advanced (LTE-A) carrier aggregation, based on a report by the Global Mobile Suppliers Association (GSA). 

The three major drivers for the VoLTE market - the expansion in LTE coverage, the availability of advanced VoLTE solutions and the introduction of VoLTE enabled handsets - will see RCS services delivered on LTE, specifically VoLTE, becoming the next battleground for mobile operators seeking to retain and increase their market share while recouping revenues lost to OTT voice and messaging providers. Recent survey findings by Ovum, conducted on behalf of iBasis, a KPN company and a provider of international voice carrier services, revealed that 80% of respondents from the mobile operators circle think that improved user experience delivered by VoLTE will be key in beefing up their ability to take on the challenge posed by OTT providers. The survey also showed that 57% of the respondents say that VoLTE will allow them to deliver voice services far more efficiently due to the technologies’ greater spectral efficiency. 

11 mobile operators rolled out HD Voice services last year with 9 operators using VoLTE while another 2 using VoLTE/HSPA networks. 

More market updates and VoLTE deployment news

Ovum Senior Analyst, Nishi Verma Nangia
Voice will continue to remain relevant, but operators need to develop new voice opportunities for the future. VoLTE will be a crucial step forward, in order to offer an improved end-user experience, and it will enable operators to compete against the growing threat of OTT voice services. As operators plan to launch VoLTE services across their domestic markets, they should prepare their networks to extend the same user experience to their roaming customers as well. International VoLTE could be a significant opportunity for operators to provide strong service and quality differentiation to end users.

iBasis CTO, Ajay Joseph
As mobile network operators (MNOs) around the world roll out their 4G/LTE networks, many want to expand their service portfolios to include VoLTE. It’s critical to define the best approach to ensure the best voice experience while maximizing capital and operating expense efficiency. By establishing the right interconnect and roaming model, mobile operators can leverage the benefits of an all-IP infrastructure and position themselves for long-term success in the international LTE marketplace.

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Author

Executive Editor and Telecoms Strategist at The Fast Mode | 5G | IoT/M2M | Telecom Strategy | Mobile Service Innovations 

Tara Neal heads the strategy & editorial unit at The Fast Mode, focusing on latest technologies such as gigabit broadband, 5G, cloud-native networking, edge computing, virtualization, software-defined networking and network automation as well as broader telco segments such as IoT/M2M, CX, OTT services and network security. Tara holds a First Class Honours in BSc Accounting and Finance from The London School of Economics, UK and is a CFA charterholder from the CFA Institute, United States. Tara has over 22 years of experience in technology and business strategy, and has earlier served as project director for technology and economic development projects in various management consulting firms.

Follow Tara Neal on Twitter @taraneal11, LinkedIn @taraneal11, Facebook or email her at tara.neal@thefastmode.com.

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