Skip to main content

Mobile Providers Rally to Defend Voice Service Revenue

Mobile network service providers are focused on defending their traditional voice services from new market disruption that threatens to further erode their legacy business model. Armed with new technology and bold plans for more rapid deployment, savvy operators are responding to the incursion.

The number of VoLTE (Voice over LTE) connections is now anticipated to reach 2 billion by 2020, rising from an estimated 123 million in 2015, according to the latest worldwide market study by Juniper Research.

The research uncovered that the marked improvement in voice quality, enabled by VoLTE, is likely to spur increased adoption of the technology by mobile network service providers across the globe. Besides, given the downward trajectory of voice service revenue trends, wireless network operators must act swiftly to slow the decline.


Juniper found that direct revenues from VoLTE will likely be limited at first, with increased availability of compatible smartphones driving adoption of the HD (High Definition) voice technology. However, the network operator sense of urgency will become elevated as more non-traditional competitors enter the mobile voice services marketplace.

Mobile network operators will initially focus on experience and quality of service, rather than monetization. That being said, Juniper believes that failure to deliver a high quality offering at the outset could potentially result in subscriber churn to rival operators.

Mobile network operators, competing on quality of service, are also investing in voice over Wi-Fi calling (VoWi-Fi) -- aimed at tackling the internal network coverage issue.

The research found that operators are launching the VoWi-Fi service to add value for the customers with little extra investment, where VoLTE is focused more on operator network efficiency.

Formidable Competitor Enters the Global Arena

Juniper also claimed that to remain competitive, mobile network operators must quickly ensure that their voice communications offerings match those of the leading over-the-top (OTT) service providers.

They cited the example of Facebook Messenger, which launched 'free' HD VoIP call services over cellular and Wi-Fi networks. With this powerful competitor now threatening core voice service revenues, launching HD voice offerings will become a critical defense strategy for mobile network operators.

HD voice adoption has been steadily rising since 2009, with over 130 mobile network operators worldwide offering Mobile HD Voice. Juniper expects the number of capable devices to grow to over 1.3 billion by 2020, driven by more mobile handset manufacturers introducing new products.

Other key findings from the study include:

  • Far East and China will account for over 50 percent of the global VoLTE connections by 2020.
  • By 2020, VoLTE services could account for over $100 billion in annual service revenue.

Popular posts from this blog

Low-Code Software Tools Fuel Transformation

Many CEOs have shared their concern that the digital transformation apps backlog within their organization is causing delays in planned growth initiatives. Therefore, they're investing in new approaches to the challenge. The worldwide market for low-code software development technologies is forecast to total $26.9 billion in 2023 -- that's an increase of 19.6 percent from 2022, according to the latest worldwide market study by Gartner. "Business Technologist" roles and a growing number of hyper-automation initiatives will be the key drivers accelerating the adoption of low-code software technologies through 2026. Low-Code Software Market Development "Organizations are increasingly turning to low-code development technologies to fulfill growing demands for speed application delivery and highly customized automation workflows," said Varsha Mehta, senior research specialist at Gartner . Equipping both professional IT developers and non-IT practitioners -- e.g.

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun