Skip to main content

Mobile Voice-over-5G Market Gains Momentum

The telecom marketplace continues to change as more CIOs and CTOs seek ways to improve voice services and cut costs. Moreover, the mobile telecom market has been prone to digital disruption, as voice over IP (VoIP) communication has evolved.

The use of fixed-line telephone services has declined steadily, while there have been significant increases in the use of mobile phone services, Wi-Fi calling services, and over-the-top (OTT) mobile voice.

Plus, the roll-out of superior mobile network connectivity modes -- such as 4G LTE, 5G, and in the foreseeable future, 6G networks -- will continue to transform the global communications market.

Mobile Telecom Market Development

The decline in fixed-line telephone services is reducing for a number of reasons, but it is primarily due to a significant increase in mobile phone and media tablet device ownership supporting data-intensive applications -- such as mobile games, mobile videos, and location-based services. 

According to the latest worldwide market study by Juniper Research, the total number of Voice-over-5G users will reach 2.5 billion globally by 2026 -- that's rising from only 290 million in 2022.

This remarkable growth of 780 percent will be driven by the ongoing acceleration of 5G roll-outs following a slowing during the pandemic. Voice-over-5G leverages the software-based nature of 5G networks to offer APIs for business voice services over operator networks.

The new Juniper study findings urged mobile network operators to capitalize on the growth of Voice-over-5G users to create a new portfolio of voice services. They recommend that savvy operators prioritize interactive calling, intelligent call routing, and the integration of AI-based interactive voice response (IVR).

These applications provide the most immediate return on investment of Voice-over-5G. In particular, Juniper analysts have identified interactive calling as a key opportunity for mobile network operators who have launched 5G to provide more valuable voice services and compete with OTT voice apps.

Interactive calling leverages 5G networks to offer advanced voice calling functionality, including interactive content and screen-sharing, directly in the native calling app on smartphones, thus negating the need for third‑party applications.

Current 4G voice technology, Voice-over-LTE (VoLTE), is not sufficient to support interactive calling. While there are currently over 4.4 billion VoLTE users, representing over 50 percent of subscribers, the lower speed of 4G networks in comparison to 5G networks has thus far restricted the use of interactive features or AI in operators’ voice services.

Outlook for VoIP Communications Apps Growth

Despite the growth of Voice-over-5G, Juniper forecasts that operator-billed voice revenue will decline by 16 percent over the next four years, as more peer-to-peer (P2P) voice traffic migrates to third-party voice software apps.

Furthermore, Juniper urges mobile network operators to capitalize on the growth of 5G networks to develop new business‑oriented voice services -- such as interactive calling. 5G-based voice services must emulate operators’ current business messaging solutions by levying the cost on enterprises, rather than monetizing mobile subscriber usage.

That said, due to the COVID-19 pandemic, the wholesale voice communications industry has gained some significant traction, as the majority of enterprises and government agencies had to adapt to employees working from home. Flexible working models will continue to gain momentum.

I believe the economic disruption of an ongoing global pandemic has highlighted how essential and important the further development of telecommunications infrastructure is in keeping people, enterprises, governments, and societies connected in the coming years.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

Retail Transformation Gains New Momentum

Forward-thinking retailers now have a bright future. In contrast, those that failed to enhance their business model via digital transformation have struggled, declined, and their assets were eventually liquidated. The key difference between these two business outcomes is applied strategic foresight. Even as the world continues to emerge from a global pandemic, retail is growing at levels not seen in the last two decades. Retail sales grew by 7 percent in 2020 and by over 14 percent in 2021, which is in stark contrast to the 3.7 percent annual growth between 2010 and 2019. The increased demand for retail has put a strain on supply chains and retail operations worldwide. As a result, retailers and stakeholders are turning to automation solutions such as mobile robotics for operational ease. Retail Transformation Market Development According to the latest market study by ABI Research, worldwide commercial robot revenue in retail stores will have a Compounded Annual Growth Rate (CAGR) of o