Following significant global LTE deployments (318 operators in 111 countries), VoLTE is now finding traction. A total of ten operators have launched VoLTE and as many as 66 operators (including the ten operators who have commercially launched VoLTE) in 35 countries are investing in VoLTE deployments. Out of those ten VoLTE launches, eight are in Asia. Explosive demand for mobile data combined with increasing price pressure, greater demand for quality, and competition from OTT players are driving global VoLTE adoption. VoLTE also offers advantages for operators, i.e. higher spectral efficiency, opex savings from consolidation, optimization, and new opportunities for more sophisticated voice-based services.
Korea leads the way
Korean telecom operators lead the way when it comes to VoLTE deployments - not just in Asia, but worldwide. The three major telcos (SK Telecom, KT, LG U+) launched VoLTE in the second half of 2012. Since the launch of LTE and VoLTE, the ARPUs of all three operators have grown significantly.
Since VoLTE rides on LTE (an all-IP data network), it enables high quality video along with HD voice. VoLTE delivers better voice quality and a better end-user experience compared to OTT VoIP services by using Adaptive Multirate Wideband (AMR-WB) codecs. It also offers faster call setup times and simultaneous use of voice and high-speed data services.
The unique combination of HD voice and video enables operators to better compete with OTT providers such as Skype, WhatsApp, and FaceTime which currently provides voice and video communications over data. Riding on operator’s core strengths - like the ability to tightly integrate with their network, track subscribers’ locations, device types, billing etc - VoLTE gives operators a competitive edge.
VoLTE & WebRTC
The appearance of WebRTC (Web Real-Time Communication) enables Web browsers capabilities to provide real time peer-to-peer video and voice transfer within the browser via a simple JavaScript API. Users can speak to each other directly between browsers rather than through a server. Telecom operators can connect 3G or VoLTE voice with browsers and further develop new digital services.
VoLTE should bring strong competitiveness in telecom operators, but success depends on interoperability among browsers and compatibility with video codecs. Support from companies like Apple, Samsung and Microsoft is imperative.
WebRTC is still in its early stages and SK Telecom is experimenting with the technology in its labs. SKT recently uploaded WebRTC on its IMS infrastructure where the developer community has shown tremendous interest. The Korean telco plans to create a development-favorable environment allowing developers to easily access and develop diverse services.
VoLTE is finding traction in Asia and is helping telcos drive ARPUs with LTE. The success of VoLTE in the long run seems positive, as carriers around the globe are making significant investments to make VoLTE work. A large number of planned roll-outs are a testimony of the same.
Naveen Mishra is an industry principal at Frost & Sullivan.
This article first appeared in Telecom Asia LTE Insights Supplement September 2014 issue