OTT voice providers to generate $10 bn revenues by 2020

Should telecoms care about OTT
OTT voice providers are expected to generate more than $10 billion in service revenues by 2020, representing a 5-fold increase over the next 5 years.

Juniper Research said OTT application providers such as Skype and WhatsApp would experience a significant rise in traffic and revenue potential as 4G network roll-outs accelerate, increasing their capability to offer VoIP (voice over IP) calls.

As most mVoIP services were offered as a free or low cost service, a small minority of OTT players had generated a significant revenues from the service.

Because of sharp decline in voice revenues as a result of OTT voice activity, traditional operators have adopted new business models by offering functionality such as VoLTE (Voice over LTE) and Wi-Fi calling through the mobile handset.

Though white label OTT services are becoming important in helping telecom operators compete with the OTT business model, the mobile phone industry should note that Telefonica has stopped TuMe and O2 discontinued its TuGo service.

Telecom operator billed VoLTE revenues will be approaching $100 billion by 2020, representing 12 percent of the global operator billed service revenue including voice and data services.

At present, more than 130 telecom operators worldwide are offering mobile HD voice.

editor@telecomlead.com