Research: OTT voice providers will see a fivefold revenue increase

(Image Credit: iStockPhoto/Christopher Badzioch)

Over the course of the next five years, OTT providers of voice services can expect to see a fivefold increase in their revenue according to a new study from Juniper Research. The basis of Juniper’s prediction that uptake of high-quality VoIP calls will increase as the rollout of 4G networks accelerates. 

The research, ‘Future Voice Strategies: mVoIP, Carrier OTT, WebRTC, HD Voice & Video Calling 2015-2020’, highlights the need for OTT voice providers to supplement their core offering with other value added services. 

Most OTT voice services generate little revenue from their voice service alone due to most being offered free or at low-cost, however these services are better-positioned than operators to monetise from users with things like stickers. Instant messaging app Line, for example, generated $75 million from sales of stickers during its first year alone. 

(Image Credit: Juniper Research

As a result of this, Juniper expects the revenue from traditional operators’ voice services to see a sharp decline. Some operators are trying to combat this decline through integrating functions such as VoLTE and Wi-Fi calling through handsets themselves; offering high-quality voice services with the benefit of simplicity for the user. 

The alternative solution is for an operator to use a “white label” OTT service like those provided by the Fring Alliance. These services were built as a temporary solution until an industry-wide standard is established and provides operators with a branded OTT application which connects users with their contacts – even on rival networks – with rich communication services that customers have come to expect. 

However, a fair warning must be issued that several white label OTT solutions which made it to market – such as Telefonica’s TuMe and O2’s TuGo service – have subsequently been discontinued. 

For a full whitepaper of Juniper’s findings, head to this link. 

Do you think white label OTT services are sensible for operators? Let us know in the comments.

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