VoIP is critical for wireless 4G network monetization

4G operators can gain a clear financial advantage by
deploying cloud-based VoIP delivery solutions, according to Wireless 20/20.


4G wireless operators can significantly increase their
ARPU and improve their ROI by offering Voice over IP (VoIP) as compared to
offering data only services.


Many operators could see an added improvement in their
ROI by deploying cloud-based delivery solutions as compared to directly
managing in-house VoIP platforms. The results of the analysis are published in
a white paper titled Maximizing Operator Value from VoIP Services.”


According to the research, launching 4G VoIP service will
result in a 25-50 percent increase in ARPU, a 10 percent increase in IRR and a
5X-10X increase in NPV versus a data-only service strategy.


The study looked at a range of operators, ranging from
national deployments with many urban centers, to low density rural
environments. In today’s competitive environment, 4G operators need to offer a
complete suite of value added services to gain and keep subscribers without
yielding market share to competitors.


Deploying a cloud-based hosted VoIP solution could
further increase IRR by an additional 5 percentage point for many operators.


Operators deploying VoIP over 4G networks are faced with
a critical decision as to whether they should build and manage an in-house VoIP
platform or partner with a cloud-based, hosted VoIP solution provider,” said
Haig Sarkissian, principal consultant of Wireless 20/20.


Though the average VoIP revenue contribution per end-user
is largely the same, the investments needed and the ROI vary drastically
depending on whether an in-house approach or a hosted solution is used.


In addition to the large CapEx investment needed, the
operating costs of an in-house solution are in the range of 30-40 percent of
the total VoIP revenues, in addition to call termination charges. This adds
both a financial burden and an organizational support burden, putting a drag on
the profitability of VoIP services, even for the largest operators.


Wireless 20/20 recommends that 4G operators include
value-added VoIP services to their offers in order to monetize the full
potential of 4G networks. The positive financial impact of VoIP can be
maximized by implementing a cloud-based solution.


By Telecomlead.com team
[email protected]