Delivering VoLTE

 

With LTE taking hold, how will operators monetize beyond a simple broadband play and how will they protect their core voice revenues?

The reliance on 2G and 3G in the age of LTE networks will still be important to serve all mobile subscribers across the globe. Even as a new network technology comes out, it is still vital to have fall backs in place should capacity reach its limit or subscribers decide not to upgrade to the latest device. It is not enough to roll out next-generation networks without acknowledging how it will impact upon the wider market. Currently, operators deploying LTE technology have to assess how they will deliver their core communications services and continue to monetize them.

If operators can overcome these challenges, they stand to benefit greatly from migrating to new technology. According to research by Heavy Reading and Wireless 20/20 for Mavenir last year, launching 4G/LTE Services immediately will result in a tenfold increase in 10 year net profits, a 50 per cent increase in internal rate of return (IRR) and a 50 per cent increase in average revenue per user (ARPU) over a data-only service strategy. For operators seeking to launch LTE services, thinking about how to deliver services that mitigate the risk of losing subscriber loyalty is essential. They must  prevent losing services to third party, over-the-top providers that do not contribute to operator revenues.

The study also revealed that delaying  launch by just two years causes a net present value reduction of 20 per cent, a 10 years IRR reduction of four per cent, and an ARPU reduction of 7.9 per cent.

 

Delivering voice and video over LTE (VoLTE)

To deliver full service parity and intelligent network services such as Prepaid and Ring back tones or mobile switching center servers (MSCs) that support circuit-switched-fallback (CSFB), large re-investment in legacy technology is required. This would slow down the time to market for upgrades and back office integration – which is something operators would seek to avoid.

For some operators, this can be implemented via a solution for CSFB that includes an inter-working function where operators can preserve voice and SMS revenues to assure global roaming and interoperability.  For operators pursuing a multimedia telephony service-based (MMTEL) VoLTE, there’s an MSC telephony application server (TAS) solution that enables existing circuit switching to serve VoLTE subscribers (leveraging MSC services in an IMS environment) over IP domain. Finally, operators wanting to deploy MMTel solutions that provide a pure IP option can do so.  All of these solutions are currently available.

 

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The study also revealed that delaying  launch by just two years causes a net present value reduction of 20 per cent, a 10 years IRR reduction of four per cent, and an ARPU reduction of 7.9 per cent.