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

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun