Telecom Lead America: Transitioning to IMS-based voice over IP on LTE, Wi-Fi and HSPA/HSPA+ (VoLTE, VoWi-Fi and VoHSPA) can reduce per-subscriber costs by up to 63 percent, according to a study by Mavenir Systems.
According to a study by analyst firm Senza Fili Consulting commissioned by Mavenir Systems, per-subscriber costs will be $1.80 per subscriber per month in a typical North American scenario due to the benefits of LTE spectral efficiency and Wi-Fi offload as a larger percentage of subscribers rely on MBB access.
The same tools enable operators to move to new subscription plans in which tiering options and add-on services account for a growing portion of the ARPU, while basic voice and data plans are merged to create the core subscription offering. This enables operators to move to better ARPUs from subscribers and new revenues from value-added service to OTTs.
“Both increased cost efficiencies and new revenues are achieved using the same technology tools and approach, treating data traffic in a more granular way based on the realization that all data packets may not be created equal in an IP network,” said Monica Paolini, Senza Fili Consulting.
“While voice service has become highly commoditized with declining ARPU, the good news is that mobile operators can reverse that decline,” said Madan Jagernauth, vice president of marketing for Mavenir Systems. “MNOs can reverse the decline of ARPU by introducing new services themselves and by partnering with OTT players to generate revenues.”
Mobile operators can raise their ARPU by 15 percent in 5 years by:
Offering subscribers more choice and flexibility
Establishing mutually beneficial partnerships with OTTs, content and application providers, and advertisers.
Requires a new approach in presenting and charging for services
In our revenue-generating framework, optional services become the main ARPU contributors, accounting for 65 percent of service revenues in Year 5.
Partner revenues account for 17 percent of ARPU by Year 5 (operators and ecosystem players).
Adoption of RCS and add-on services give operators more control over traffic.