ICT

OTT Mobile Voice Revenues to Top $10Bn by 2020 Eroding Mobile Operators Share

Updated:2015/9/30 10:08

A new study from Juniper Research has found that OTT (Over the Top) voice providers are expected to see an increase in their service revenues by 2020, reaching over $10 billion, representing a fivefold increase over the next 5 years.

The study argued that OTT application providers such as Skype and WhatsApp would experience a significant rise in traffic and revenue potential as 4G network rollouts accelerate, thereby increasing their capability to offer high-quality VoIP (Voice over IP) calls.

OTT's Shift Focus to New Revenue Streams

The research, ‘Future Voice Strategies: mVoIP, Carrier OTT, WebRTC, HD Voice & Video Calling 2015-2020’, found that as most mVoIP services were offered as a free or low cost service, only a small minority of OTT players had generated a significant revenues from the service.

Operators Fight Back

Meanwhile, the research observed that with traditional operators’ voice revenues in sharp decline as a result of OTT voice activity, a number of operators have adopted new business models mimicking those of OTT players. These include directly offering functionality such as VoLTE (Voice over LTE) and Wi-Fi calling through the handset.

The research also argued that white label OTT services, such as the fring alliance, are becoming increasingly important in helping operators compete with the OTT business model. However, it cautioned that such initiatives historically had mixed results, with both Telefonica’s TuMe and O2’s TuGo service having been discontinued.

Other key findings

VoLTE will see widespread adoption among MNOs, with operator billed VoLTE revenues approaching $100 billion by 2020, representing 12% of the global operator billed service revenue including voice and data services.

HD voice adoption has been steadily rising since 2009, with over 130 operators worldwide offering Mobile HD Voice.

The complimentary whitepaper, ‘Monetising OTT Voice’, is now available to download from the Juniper website together with further details of the full research.

 Source:C114
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