Skip to main content

Mobile Video Calling Users will Reach 130 Million by 2018

Mobile voice calling, despite increased competition and the threat of new disruptive technologies, remains the most important revenue generator for the incumbent mobile network operators worldwide. However, network operator voice revenues face immense pressure and will continue to be eroded by competitors with lower-cost or free (ad-supported) service offerings.

Mobile data traffic, though rising impressively in volume, is failing to make up the shortfall in revenues, potentially leading to a scenario where overall revenues remain in decline for mobile service providers.

This, in a nutshell, describes the backdrop to today's mobile voice communications industry from the incumbent's perspective.

Meanwhile, users of mobile video calling services -- such as Skype -- are forecast to increase to over 130 million users by 2018, according to the latest global market study by Juniper Research.

However, questions remain over the upside potential for mobile video calling to generate significant revenues for service providers.


The Juniper market study findings observed that as with many over the top (OTT) services, only a small proportion of mobile video calling users pay for the service directly.

OTT mobile video calling players are therefore widening their service offering and opening their client bases to third parties or developing their own apps in a bid to increase monetization options.

"The role of mobile video calling is becoming clearer," said Anthony Cox, associate analyst at Juniper Research.

With a number of OTT players having gained a critical mass of users through the provision of free video services, those players are now introducing an array of premium products or creating revenue-share partnerships to create a viable revenue stream.

The study also found that new standards such as WebRTC (Real Time Communication) will improve integration of mobile Voice over IP (mVoIP) functionality into web sites and mobile apps, paving the way for the development of new services such as direct access to sales call centers from websites.

Further findings from the market study include:
  • With the arrival of 4G technologies, most mobile network operators will adopt VoLTE, increasing their network efficiency, though direct revenues will be limited.
  • Specialists such as Kineto and Amdocs have found a niche in creating OTT monetization strategies for multinational mobile network operators.
  • Mobile network operators and rival OTT carriers are collaborating on creating advanced carrier OTT voice services, potentially representing the most important change in the voice market since the advent of VoIP.

Popular posts from this blog

How Data and Analytics Drive Business Growth

Senior executives in the world’s largest and most complex organizations will develop the insights required to achieve lasting Digital Transformation. Gartner has identified a model for digital business growth that binds together data, analytics, technology, and forward-looking transformation capabilities. The Gartner Research Board said that data and analytics (D&A) leaders are uniquely positioned to drive this strategic organizational change that will make their companies behave like 'digital native' leaders.  "The most advanced and successful D&A leaders are driving new opportunities to use digital capabilities – often data and analytics products – to capture value. Those opportunities should directly connect to the business priorities," said Mario Faria, vice president at Gartner . Digital Business Market Development At the same time, some leaders are using digital and D&A to create whole new business models. These leaders – which Gartner named the CxO

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc