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Mobile OTT VoIP Illustrates Dynamic Wireless Marketplace

An important trend that NetAmerica is tracking is the rise in mobile VoIP delivered over-the-top by companies such as Skype and WhatsApp. A new report from Juniper Research offers some eye-opening data about this market. Mobile OTT VoIP revenues will surge five-fold as roll-outs of 4G broadband networks accelerate, according to Juniper. OTT VoIP providers' annual revenues will exceed $10 billion by 2020, Juniper forecasts in its ¨Future Voice Strategies: mVOIP, Carrier OTT, WebRTC, HD Voice & Video Calling 2015-2020."

Behind Mobile OTT VoIP Revenue Trends

Most mVoIP service providers have been offering their services for free or at low-cost, thereby failing to generate revenues of any significant amount, at least not directly from provision of mVoIP services. However, Juniper points out that service providers have been able to produce revenues off the backs of their mVoIP businesses via in-app purchases or an associated social media platform, such as that of Daum Kakao.

With their voice revenues shrinking at a rapid rate, incumbent telcos and other voice service providers are adopting an ¨if you can't beat them, join them" approach to salvaging and reviving their voice businesses. They are adopting business models similar to those of the OTT players and are making use of the same technologies as those competitors, at times rolling out ¨white label¨ OTT platforms and introducing voice-over-LTE (VoLTE) and Wi-Fi voice services.¨

¨White label¨ OTT VoIP platform providers, such as the fring alliance, are becoming increasingly important players in the voice market, according to Juniper.

Other key findings include:

  • VoLTE will see widespread adoption among mobile operators, with operator billed VoLTE revenues approaching $100 billion by 2020, representing 12% of global operator billed service revenue including voice and data services;
  • HD voice adoption has been steadily rising since 2009, with more than 130 operators worldwide offering Mobile HD Voice.

NetAmerica continues to be focused on informing our blog and newsletter subscribers about key trends in the mobile industry.

Chuck Harris leads the Alliance Development Team for NetAmerica Allaince whose mission it is to grow NetAmerica's 4G LTE footprint by working with wireless license holders across the U.S. interested in joining the NetAmerica Alliance to provide 4G LTE service to citizens in rural America.