There will be over 1 billion users of over the top (OTT) mobile VoIP services by 2017, thanks to the improvements in network technology, increased competition and the move by telcos to join the OTT space. However, the problem remains that only a very small proportion will pay for the service, finds Juniper’s report.
According to the report’s author Anthony Cox, many subscriber sign up to an OTT service without ever planning to pay a single cent for it, and some industry players do not have a short-term revenue model at all.
However, the report also notes that leading mobile VoIP players are becoming increasingly sophisticated in their service offerings and are developing more ways to monetize their services.
Some other finding include:
- Specialist mobile VoIP companies are opening their APIs to third parties including mobile operators to gain revenues.
- The arrival of 4G will give further impetus to mobile VoIP take-up but potentially accelerate the decline in overall voice revenues.
- Despite market challenges, mobile video calling market leaders are finally beginning to monetize the mobile video calling sector through advertising and premium services.
- Circuit switched voice revenues will still continue to decline, but at the end of the forecast period will represent a substantial proportion of operators’ revenues
Again, Juniper’s website provides additional information about the report.