Skip to main content

Evolution of the Mobile Telecom Service Business Model

Mobile communication service providers across the globe have been eager to uncover new sources of subscriber revenue as over-the-top (OTT) apps continue to disrupt their traditional business model offering voice calling and text messaging.

These operators are currently under pressure due to investment in emerging technologies, including 5G and M2M networks. Thus, they must develop and deploy new capabilities that can leverage their networks to both increase revenues from voice services and reduce OPEX (Operational Expenditure).

That said, the latest worldwide market study from Juniper Research has found that operator-billed mobile voice revenues will fall from $354 billion in 2018 to $197 billion by 2023 -- that's an average annual decline of 10 percent.

Mobile Services Market Development


The new research, Mobile Voice: Operator Strategies & Vendor Opportunities 2018-2023, identified a series of new opportunities which collectively would enable mobile network operators to sustain, or even increase service revenues.



5G & AI Enabling New Business Models

Juniper identified 5G as critical for operators to slow declining voice revenues. It is expected that 5G connections will exceed 370 million by 2023; generating $88 billion in operator-billed revenues. This will be over 50 percent of the anticipated voice revenue loss. It also argued that operators could generate additional revenue through support for new voice services; powered by technologies such as Google’s Duplex.

CPaaS (Communications Platforms-as-a-Service) Disruption

In order to capitalize on revenue streams for emerging voice services, Juniper advises that mobile network operators must adopt new ecosystems of converged technologies -- including voice, messaging and digital assistants. It predicted that operators will facilitate this by supporting the CPaaS model, whereby central management of communication is offered via a single platform.

The VoLTE Opportunity

The analyst forecasts significant growth for OTT software apps, such as WhatsApp and Facebook Messenger. These apps will generate 15.7 trillion minutes of voice usage by 2023; equivalent to streaming 3.8 trillion music tracks.

In response, Juniper urged operators to rollout voice technologies that offer superior benefits and are easily integrated into this CPaaS approach, such as VoLTE (Voice over LTE).

Outlook for Mobile Service Innovation

"The OTT ecosystem is fragmented and, as a result, is unable to offer the same level of reach as mobile network operators. In order to maximize OTTs shortfall in this area, operators must adopt the CPaaS approach to win back traffic, thus minimizing future shortfall in revenues," said Sam Barker, senior analyst at Juniper Research.

Moreover, Juniper forecasts that VoLTE users will exceed the OTT voice app users for the first time in 2020, a year earlier than they had previously anticipated.

Popular posts from this blog

Digital Transformation Growth Defies Market Volatility

The forward-looking CEO's commitment to ongoing investment in Information Technology (IT) is persistent. Worldwide IT spending is forecast to total $4.4 trillion in 2022 -- that's an increase of 4 percent from 2021, according to the latest worldwide market study by Gartner, Inc.   "This year is proving to be one of the noisiest years on record for CIOs," said John-David Lovelock, vice president at Gartner . Regardless, digital transformation remains a high priority across the globe. Geopolitical disruption, inflation, currency fluctuations, and supply chain challenges are among the many market volatility factors vying for attention, yet contrary to what Gartner saw at the start of 2020, enterprise CIOs are accelerating IT investments in 2022. Digital Transformation Market Development As a result, purchasing and investing preferences will be focused on areas including data analytics, cloud computing, seamless customer experiences, and IT security. Inflation impacts on

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

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