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Fixed-mobile convergence and mobile VoIP will create substantial growth opportunities for mobile voice usage and revenues while allowing mobile operators to stem the commoditization of the $500bn mobile voice market. There is a $200bn opportunity for additional revenue that can be captured from migrating fixed-line traffic to mobile networks. This growth will not automatically go to mobile service providers as new IP technologies allow both mobile and fixed-line operators to compete for market share. To remain on top of mobile voice, mobile providers must rethink their approach to end-user services and networks.
Report author Svetlana Issaeva notes, “Growing mobile voice revenue is an increasingly challenging task. In developed markets, mobile minutes are often given away for a pittance in the heat of competition, decreasing voice ARPS while mobile data adoption remains weak.” This makes fixed-mobile substitution a major strategy to grow the mobile business. But new IP technologies also give fixed-line operators and VoIP service providers a chance to enhance their offers with mobile voice and expandtheir revenue streams. But new IP technologies give fixed-line operators and VoIP service providers a chance to add mobile voice offerings and expand revenue streams. Immediate fixed-line operator strategy focuses on retaining enterprise subscribers through VoWLAN and minimizing fixed-mobile substitution by offering mobile VoIP@Home with UMA technology.
Issaeva states, “Mobile operators need to react soon. It means integrating new delivery networks like WLAN and moving towards mobile VoIP, otherwise they risk losing ground to fixed-line operators, who are actively seeking to incorporate mobile services into their portfolios.”
As an additional benefit, offering voice as part of bundled IP packages will help cellcos offer differentiated services and prevent a further commoditization of mobile voice. Leveraging capabilities provided by IP Multimedia Subsystem (IMS) and VoWLAN in the short-term will allow cellcos to personalize mobile voice services strengthen their competitive standing.
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