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By: Josee Loudiadis, Director of Network Intelligence, Alcatel-Lucent
Voice over LTE (VoLTE) and rich communications services can help mobile service providers reclaim market share being lost to over-the-top (OTT) applications.
Voice and text revenues are declining as mobile service providers (MSPs) face an unprecedented challenge from OTT communication apps such as Facebook, Instagram, and lesser known entrants, including WhatsApp and LINE. At first, MSPs enjoyed net gains because the use of these apps had generated significant data revenue. But times have changed. While still a source of revenue, these apps have begun to erode MSP’s native voice and messaging revenue.
To illustrate, let’s look at WhatsApp, who recently debuted its business model for mobile virtual network operators. In this model, WhatsApp (now owned by Facebook) provides voice and messaging services while leasing wireless services from a mobile operator. This means that MSPs are left with price per bit as their sole differentiator.