• Japanese
  • Korean
  • Chinese
Cover Image

Voice over LTE: Market Analysis and Forecasts

  • Published:
  • 70 Pages
  • ARCchart

Abstract

Executive Summary

Carriers worldwide are seeking ways to improve the efficiency and capacity of their networks while minimizing costs and improving end-user experience. LTE has served this purpose well in terms of mobile broadband data access, but carriers are struggling to find solutions to fight declining revenues for voice services, the primary stream of revenue for most carriers. Voice over LTE (VoLTE) offers a potential solution. Not only does VoLTE offer unique advantages in lowering a carrier's voice infrastructure economics, but it also promises to improve voice quality, device battery life and user experience by allowing concurrent voice and data services over a single LTE radio interface.

VoLTE was first introduced in 2010 by the GSM Association (GSMA), and has been standardized by the 3GPP. Without VoLTE, carriers use their LTE network solely for IP data transmission and are forced to use their legacy 2G/3G infrastructure for voice communications. Essentially, VoLTE voice-enables LTE and allows concurrent usage of both voice and data on the same network.

Concurrent access of voice and data services over a single radio interface is of particular interest to CDMA carriers because unlike WCDMA/GSM, the CDMA standard does not support Circuit Switched Fallback (CSFB) technology. LTE subscribers on CDMA carriers are forced to concurrently use their LTE and CDMA radio interfaces, which drains battery life. As a result, CDMA operators will be early entrants to the VoLTE market.

The first VoLTE launch has been announced by MetroPCS in the US, which aims to commercially launch its VoLTE service in Q3'2012. This will be followed by a string of deployments worldwide, starting with the US and Asia Pacific markets. ARCchart forecasts that revenues generated from VoLTE services will reach $2 billion by 2016, representing a CAGR of nearly 390% between 2012 and 2016.

Commercial grade VoLTE is at a nascent state. Demand is being fuelled by carriers wanting to establish a native mobile VoIP solution, both for the long term economic benefits and to defend against the threat posed by OTT (Over the Top) VoIP providers such as Skype, FaceTime and Viber. However, ARCchart does not expect VoLTE will substantially stem the flow of voice traffic from carrier networks to OTT voice services, mainly because these OTT services are free of charge. Even if carriers impose restrictions on their subscribers' OTT usage, the migration of voice traffic will continue because as much as 70% of all OTT traffic is over Wi-Fi.

Table of Contents

A. INTRODUCTION

  • A.1 Origins of Mobile VoIP
    • Device as a SIP Client
    • SIP Integration with SS7
  • A.2 The Rise of OTT Players
    • OTT Market Size and Growth
    • OTT Service Revenue
  • A.3 Operator Attitudes to OTT Mobile VoIP
    • Limiting OTT Mobile VoIP
    • Embracing the OTT Phenomenon
    • Operator Branded OTT VoIP
  • A.4 Prospects of Operator Mobile VoIP Solutions
    • Justifying the Business Case
    • Benefits for Spectral Efficiency
    • Benefits for Total Cost of Operation
  • A.5 The Case for VoLTE

B. VOICE OVER LTE TECHNOLOGY

  • B.1 VoLTE Technology
    • Voice over IMS, aka VoLTE
    • Circuit Switched Fallback (CSFB)
    • CSFB Limitations
    • Voice over LTE via Generic Access (VoLGA)
    • VoLGA Limitations
  • B.2 VoLTE Industry Roadmap
    • VoLTE Roadmap in the CDMA Ecosystem
    • VoLTE Roadmap in the WCDMA/GSM Ecosystem

C. THE VOLTE BUSINESS CASE

  • Interoperability and Economies of Scale
    • Network Economics
    • The Push from CDMA Operators
    • Improving Battery Life for LTE Subscribers
    • HD Voice
    • Support on Multiple Devices
    • Opening the Door for Video and Multimedia Services
    • Defending Against OTT Players
  • C.2 Operator Commitments and Vendor Selection
    • MetroPCS (USA)
    • Verizon Wireless (USA)
    • LG Uplus (South Korea)
    • CSL (Hong Kong)
    • TeliaSonera (Sweden)
    • Vendor Selection Trends
  • C.3 Key Challenges in the VoLTE Ecosystem
    • Availability of Devices
    • In-Call Handover and Emergency Calling Support
    • Aligning Operator Voice Strategies
    • Network Integration and Management Challenges

D. MARKET SIZE AND FORECASTS

  • D.1 Global Mobile Voice Market
    • Circuit Switched Voice Market
    • Regional Breakdown
    • Revenue
    • Regional Revenue Breakdown
  • D.2 Mobile VoIP Market
    • Regional Breakdown
    • Revenue
    • Regional Revenue Breakdown
    • Circuit Switched and Mobile VoIP Markets Compared
    • Revenue
    • OTT Mobile VoIP Market
    • Regional Breakdown
    • Revenue
    • Regional Revenue Breakdown
    • Mobile VoLTE Market
    • VoLTE and OTT Subscriptions Compared
    • Regional Breakdown
    • Revenue
    • Regional Revenue Breakdown
    • VoLTE and OTT Revenues Compared
  • D.3 North America VoLTE Market
    • VoLTE and OTT Subscriptions Compared
    • VoLTE and OTT Revenues Compared
  • D.4 Asia Pacific VoLTE Market
    • VoLTE and OTT Subscriptions Compared
    • VoLTE and OTT Revenues Compared
  • D.5 Western Europe VoLTE Market
    • VoLTE and OTT Subscriptions Compared
    • VoLTE and OTT Revenues Compared
    • D.6 Middle East VoLTE Market
    • VoLTE and OTT Subscriptions Compared
    • VoLTE and OTT Revenues Compared
  • D.7 Africa VoLTE Market
    • VoLTE and OTT Subscriptions Compared
    • VoLTE and OTT Revenues Compared
  • D.8 Eastern Europe VoLTE Market
    • VoLTE and OTT Subscriptions Compared
    • VoLTE and OTT Revenues Compared
  • D.9 Latin & Central America VoLTE Market
    • VoLTE and OTT Subscriptions Compared
    • VoLTE and OTT Revenues Compared

List of Figures

  • Figure 1 - Global OTT mobile VoIP subscriptions: 2010 - 2016
  • Figure 2 - Global OTT mobile VoIP Revenue: 2010 - 2016
  • Figure 3 - Network Implementation of VoLTE Technology
  • Figure 4 - Network implementation of Circuit Switched Fallback (CSFB) technology
  • Figure 5 - Network implementation of Voice over LTE Via Generic Access (VoLGA) technology
  • Figure 6 - VoLTE Development Roadmap 2012 - 2013
  • Figure 7 - Total Cost of Operation (TCO) for Data by RAN technology 2012 and 2016
  • Figure 8 - Total Cost of Operation (TCO) for Voice by RAN technology 2012 and 2016
  • Figure 9 - VoLTE as a foundation of service extension
  • Figure 10 - Global mobile carrier circuit switched voice subscriptions: 2010 - 2016
  • Figure 11 - Global mobile carrier circuit switched voice subscriptions by region: 2010 - 2016
  • Figure 12 - Global mobile carrier circuit switched voice revenues: 2010 - 2016
  • Figure 13 - Global mobile carrier circuit switched voice revenues by region: 2010 - 2016
  • Figure 14 - Global Mobile VoIP Subscriptions: 2010 - 2016
  • Figure 15 - Global mobile VoIP revenues: 2010 - 2016
  • Figure 16 - Global Mobile VoIP revenues by region: 2010 - 2016
  • Figure 17 - Global circuit switched and mobile VoIP Subscriptions compared: 2010 - 2016
  • Figure 18 - Global circuit switched and mobile VoIP Revenues compared: 2010 - 2016
  • Figure 21 - Global OTT mobile VoIP subscriptions: 2010 - 2016
  • Figure 22 - Global OTT mobile VoIP subscriptions by region: 2010 - 2016
  • Figure 19 - Global OTT mobile VoIP revenues: 2010 - 2016
  • Figure 20 - Global OTT mobile VoIP revenues by region: 2010 - 2016
  • Figure 26 - Global VoLTE subscriptions: 2010 - 2016
  • Figure 27 - Comparison between VoLTE & OTT mobile VoIP subscriptions: 2010 - 2016
  • Figure 28 - Global VoLTE Subscriptions by Region: 2010 - 2016
  • Figure 23 - Global VoLTE Revenues: 2010 - 2016
  • Figure 24 - Global VoLTE revenues by region: 2010 - 2016
  • Figure 25 - Comparison between VoLTE & OTT mobile VoIP revenues: 2010 - 2016
  • Figure 29 - VoLTE Penetration in the North American market 2016
  • Figure 30 - North America VoLTE and OTT mobile VoIP subscriptions: 2010 - 2016
  • Figure 31 - North America VoLTE and OTT mobile VoIP revenues: 2010 - 2016
  • Figure 32 - Asia Pacific VoLTE and OTT mobile VoIP subscriptions: 2010 - 2016
  • Figure 33 - Asia Pacific VoLTE and OTT Mobile VoIP Revenues: 2010 - 2016
  • Figure 34 - Western Europe VoLTE and OTT mobile VoIP subscriptions: 2010 - 2016
  • Figure 35 - Western Europe VoLTE and OTT mobile VoIP revenues: 2010 - 2016
  • Figure 36 - Middle East VoLTE and OTT mobile VoIP subscriptions: 2010 - 2016
  • Figure 37 - Middle East VoLTE and OTT mobile VoIP revenues: 2010 - 2016
  • Figure 38 - Africa VoLTE and OTT mobile VoIP revenues: 2010 - 2016
  • Figure 39 - Africa VoLTE and OTT mobile VoIP revenues: 2010 - 2016
  • Figure 40 - Eastern Europe VoLTE and OTT mobile VoIP revenues: 2010 - 2016
  • Figure 41 - Eastern Europe VoLTE and OTT mobile VoIP revenues: 2010 - 2016
  • Figure 42 - Latin & Central America VoLTE and OTT mobile VoIP subscriptions: 2010 - 2016
  • Figure 43 - Latin & Central America VoLTE and OTT mobile VoIP revenues: 2010 - 2016
Show More
Pricing
Get Notified
Email me when related reports are published