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VOIP apps slash carrier revenue

Alex Kayle
By Alex Kayle, Senior portals journalist
Johannesburg, 22 Nov 2011

apps slash carrier revenue

protocol (VOIP) clients are eating into carrier revenues, according to a study commissioned by mobile solutions provider, Mavenir Systems, BGR reports.

One-third of carriers around the world are experiencing declines in voice traffic and SMS revenue, as a result of the increased popularity of third-party solutions.

The Next Web says, according to operators, messaging, voice and video apps will cause usage of their own services to drop between 11% and 20% over the next five to 10 years. Some operators see that number being closer to 31% and 40%.

Mavenir says this is one of the primary reasons the industry is currently moving towards an all-IP converged core network accelerated by the deployment of LTE technology.

“By allowing users to place high-definition voice and video calls, chat, share content and discover new services as part of a globally connected framework, operators can retain and even grow their share of customer communication spend,” states the report.

PR Newswire reveals that Gavin Patterson, Mobile Squared chief markets analyst, says: "The mobile landscape is changing as users embrace all kinds of messaging that enable them to seamlessly message a multitude of devices.”

He adds: “This study confirms that lucrative messaging revenues are already impacted and operators are assessing ways to deliver core-network services in the all-IP environment. Rich communication ecosystem applications are one example of how mobile operators can overcome the hurdles they face."

Around 42% of operators say they will roll out IP multimedia subsystem-based services to offer RCSe and VoLTE, while 45% of operators think that other similar technologies would enable a quicker route to market.

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