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VOLTE connections at 2 billion by 2020

Regina Pazvakavambwa
By Regina Pazvakavambwa, ITWeb portals journalist.
Johannesburg, 09 Nov 2015
To remain competitive, operators will need to ensure that their communications offerings match those of leading over-the-top providers, says Juniper Research.
To remain competitive, operators will need to ensure that their communications offerings match those of leading over-the-top providers, says Juniper Research.

The number of voice over LTE (VOLTE) connections is anticipated to reach 2 billion by 2020, rising from an estimated 123 million in 2015.

This is according to Juniper Research's recent survey which notes the marked improvement in voice quality enabled by VOLTE is likely to spur increased adoption of the technology.

GSA says 11 operators are investing in VOLTE in 52 countries globally (deployments, trials, studies) - in SA's mobile operator Vodacom says it made the country's first VOLTE call over its 4G/LTE network in September.

It also points out 30 operators commercially launched VOLTE-HD voice in 21 countries. In SA, mobile operator Vodacom made its first VOLTE call over its 4G/LTE network in September.

The Far East and China will account for over 50% of the global VOLTE connections by 2020, says the study.

SNS Research estimates VOLTE service revenue will grow at a compound annual growth rate of 36% between 2015 and 2020.

By the end of 2020, VOLTE subscribers will account for nearly $120 billion in revenue, it says. Although traditional voice services will constitute a major proportion of this figure, over 12% of the revenue will be driven by video calling and supplementary services, adds the research.

Juniper says direct revenues from VOLTE will be limited at first, with increased availability of compatible handsets driving adoption of the technology.

It argued that network operators will initially focus on experience and quality of service, rather than monetisation, with failure to deliver a high quality offering at the outset potentially resulting in churn to rival operators, it says.

According to Juniper, to remain competitive, operators will also need to ensure that their communications offerings match those of leading over-the-top providers.

For example Facebook Messenger, which recently launched free high definition (HD) voice over Internet protocol call services over cellular and WiFi networks, notes Juniper.

With this in mind, it argued that an operator HD Voice service proposition would be a critical element.

The implementation of the VOLTE infrastructure is the first step towards commercial implementation that will ultimately result in faster call set-up times, better voice quality and an overall improved quality of service," says Vodacom CTO Andries Delport.

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