Research: VoIP and other value-added services critical to 4G revenues

VoIP and other value-added services will be critical offerings for mobile network operators to generate revenue and monetize their 4G network investments, says new research from Wireless 20/20.

These type of valued-added services can significantly boost an operator's ARPU and improve their return on investment (ROI) significantly over data-only services. For instance, the firm said introducing a 4G VoIP service could result in a 25 percent to 50 percent increase in ARPU, a 10-percent increase in internal rate of return (IRR) and a five-fold to 10-fold increase in net present value compared with just introducing a data-only service. Rolling out a third-party hosted cloud-based VoIP system could bump up IRR by another 5 percentage points because operators save on capital expenditures, operations and maintenance and servicing.

"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, Wireless 20/20 principal consultant. "We found that although 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."

For more:
- see this Telecompetitor article

Related articles:
GSMA adopts IMS-based voice over LTE solution
Report: Some operators better off dropping voice services in LTE world
VoLTE becoming competitive need for Verizon

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