VoIP over 4G: Can You Hear Me Now?

The next generation of mobile networks based on LTE and WiMAX might have flat, all-IP architectures that operators can use to more cost effectively support the exploding growth in mobile data, but voice will be the main revenue generator, according to research firm Maravedis.

In fact, the deployment of VoIP over 4G will be crucial for the success of service providers, and greatly will impact the overall size of the LTE and WiMAX markets, said Adlane Fellah, CEO of Maravedis.

Barring a few exceptions, voice revenue does not yet make up a large component of total revenue. WiMAX predominantly will continue to be used to deliver high-speed Internet for another year or two, but the successful deployment of VoWiMAX is crucial to profitability. Another driving factor will be the availability of VoIP-capable multimode (WiMAX, 3G, LTE) mobile Internet devices, which should greatly increase the consumer value proposition, and in turn drive increased subscription and ARPU. In other words, Vo4G can make a dramatic impact on service providers’ top-line revenue.

“In the mainstream cellular industry, VoIP has yet to make any real inroads, due to the walled-garden approach of cellular carriers and technical considerations of today’s 3G networks,” explained Fellah. “LTE, much like WiMAX, is being optimized for VoIP performance. When LTE networks are deployed, the bulk of revenue will still be voice revenue, making it paramount that the customer experience on a VoIP 4G network will be equivalent to their 3G experience. A shift from dual-mode networks with 3G voice and 4G data will occur over time to capitalize on the added efficiency of fully packetized networks.”

Vendor selection is key for service providers to find opportunity here, says Basharat Ashai, co-author of the report. “Since WiMAX does not today specifically address how QoS is applied for voice traffic, equipment vendors decide how to classify packets as VoIP and how to apply QoS to those packets,” he added. “Best practices for network architecture and provisioning are lacking. Vendors need to focus on developing vertical applications and OSS/BSS capabilities targeted towards the WiMAX market.”

For its part, WiMAX operator Clearwire Corp. has said it plans to offer a VoIP service on its Clear mobile WiMAX network.

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