Carrier Digital Communications Agility and Innovation Will Maximize Service Provider Opportunities.

MarketLine Case Study
Carrier digital
communications
Agility and innovation will
maximize service provider
opportunities
Reference Code: ML00022-007
Publication Date: April 2016
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
Carrier digital communications: Agility in innovative use cases will maximize service provider opportunities ML00022-007/Published 04/2016
© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

OVERVIEW
Catalyst
Digital communication technologies have exploded across the world transforming nearly every aspect of the information
and media landscape. Organizations are shifting to address implications, manage consequences, and capitalize on
opportunities presented by new digital communications platforms, and by the emergence of social media platforms in
particular. This case study gives an insight into the reasons behind the growing popularity of the carrier digital
communications market, analyzes the market drivers and details a number of industry and service provider initiatives that
highlight how technologies from VoLTE to Wi-Fi Calling and WebRTC are moving towards commercialization.
Summary
•OTT messaging leaders evolve their key mobile messaging application interfaces to new voice and video
communications, with revenue dilution implications for carriers worldwide.
•Although RCS pre-dates the OTT messenger threat, the technology is still one of the best available competitive offset
tools available to the carrier community today, and new ecosystem partners have emerged to accelerate the inclusion of
the pre-IMS carrier community.
•Despite initial sluggish uptake, carriers are now reconsidering the Rich Communications Services (RCS) opportunity as
arguably a best-bet OTT competitive offset in the digital communications space.
•Ecosystem maturity is assisting the RCS story, particularly in the light of a far broader availability of RCS-native devices
from a larger number of OEM providers. A broader availability of RCS-native devices skirts the need for carriers to
market and encourage the take up of RCS story via downloadable apps.
•Simultaneously, carriers are moving ahead with early VoLTE and Wi-Fi Calling projects, but the prerogative to
differentiate these digital communications services from OTT interfaces in terms of value-added service features is still
some ways away. Few operators have managed to market differentiation in terms beyond ‘better quality voice’.
•Carriers are struggling to find their place in the WebRTC value-chain, and clearly find it difficult to perceive the
opportunities in a B2B2C context. Nevertheless, a few carriers are starting to explore the various innovation avenues,
from opening an enhanced calling API for WebRTC to developers to allow third parties to provision browser-based voice
and video services alongside their own online Web interfaces, to launching a B2C brand, to learn more about customer
WebRTC uptake and behavior trends.

TABLE OF CONTENTS
Overview ............................................................................................................................................................................. 2
Catalyst............................................................................................................................................................................ 2
Summary ......................................................................................................................................................................... 2
Carrier forced to develop their services ............................................................................................................................... 5
Global carrier mobile messaging volumes and revenues threatened by OTT messenger apps ...................................... 5
OTT threat moves beyond messaging to voice ............................................................................................................... 6
Leading OTT messaging apps dominate in video calling feature functionality ................................................................. 7
Digital communications technology taking stepping into voice and data network ................................................................ 9
VoLTE enters into mobile networks ................................................................................................................................. 9
Wi-Fi access points gaining importance in supporting voice and video calls ................................................................. 10
WebRTC is an alternative route for real time communications ...................................................................................... 10
Popularity of digital communications technology growing ................................................................................................. 12
RCS becomes the standard communication offer ......................................................................................................... 12
Wi-Fi calling deployments to date and next steps .......................................................................................................... 13
WebRTC developed by major carriers ........................................................................................................................... 13
Mesh networking's march toward market success......................................................................................................... 14
Broad array of competitors innovate faster in digital communications ............................................................................... 16
Competitive digital communications solutions ............................................................................................................... 16
Carriers see opportunities in digital communications ..................................................................................................... 16
Conclusion ........................................................................................................................................................................ 17
Carriers evolve mobile messaging application interfaces to incorporate new voice and video communications offerings
...................................................................................................................................................................................... 17
Appendix ........................................................................................................................................................................... 18
Definitions ...................................................................................................................................................................... 18
Ask the analyst .............................................................................................................................................................. 19
About MarketLine .......................................................................................................................................................... 19
Disclaimer ...................................................................................................................................................................... 19

TABLE OF FIGURES
Figure 1: Average monthly SMS Decline 2015-20120 ........................................................................................................ 5
Figure 2: Voice ARPS in 2020............................................................................................................................................. 6
Figure 3: OTT Voice demonstrates rapid progress in 2015 ................................................................................................. 7
Figure 4: Leading OTT app Video calling capabilities ......................................................................................................... 8
Figure 5: Carrier voice evolution to VoLTE .......................................................................................................................... 9
Figure 6: 5G use cases and technology requirements to support them ............................................................................ 10
Figure 7: Integrating WebRTC clients with carrier IP networks ......................................................................................... 11
Figure 8: Rich communications services market status..................................................................................................... 12
Figure 9: Key carrier Wi-Fi calling deployments to date, features ..................................................................................... 13
Figure 10: Open Garden’s network vision ......................................................................................................................... 14

CARRIER FORCED TO DEVELOP THEIR SERVICES
‘Over the top’ (OTT) messaging leaders are rapidly evolving their key mobile messaging application interfaces to new
voice and video communications, with revenue dilution implications for carriers worldwide. The progress made in mobile
IP voice and video in 2015 alone from key OTT players such as Facebook and Google is a clear indication of heightened
mobile communications competitive pressure from these new players in 2016 and beyond.
Global carrier mobile messaging volumes and revenues

threatened by OTT messenger apps
Pyramid Research predicts a 25% decline in global average monthly SMS usage between 2015 and 2020. Average
monthly voice MoU is predicted to stay steady over the same period, however, with the heaviest impact in Western
Europe and North America.
Figure 1: Average monthly SMS Decline 2015-20120
SOURCE: Pyramid Research MARKETLINE
In Africa and the Middle East, average voice MoU is predicted to continue growing, with imperceptible losses in Asia
Pacific, Latin America and Central and Eastern Europe.
Despite average monthly voice MoU stability, global average voice ARPS are predicted to fall by 23% from 2015-2020.

Figure 2: Voice ARPS in 2020
OTT threat moves beyond messaging to voice

OTT communications application leaders are building on core messaging interfaces with new and enhanced voice
features and functions for a fuller communications experience. The OTT threat to carrier revenues is moving to voice.
The Google Project Fi multi-carrier cellular/WiFi MVNO model with automatic steering to public WiFi for a ‘network of
networks’ experience sets out an aggressive model for OTT voice. Others like Whatup, Facebook, Jott or Open Garden
are sure to follow.
The new WhatsApp Voice feature allows the app’s circa 800 million users to mobile VoIP call friends nationally and
internationally, over cellular or WiFi at no extra charge beyond data access.
Facebook is constantly experimenting with app bridges between its key communications interfaces Facebook Messenger
and WhatsApp. Facebook CEO Mark Zuckerberg claimed Facebook Messenger drives 10% of all global mobile VoIP
calls (Q1 2015). In the same results call, Zuckerberg talked up the high quality of mobile VoIP, even claiming that it is
superior to standard cellular voice quality in many cases.
New mesh networking apps such as Jott report swift uptake for a messaging experience which requires no data access.
In July 2015, Open Garden achieved private messaging, and is gunning to affect a voice feature.

Figure 3: OTT Voice demonstrates rapid progress in 2015
Leading OTT messaging apps dominate in video calling feature

functionality
Carriers are now in a catch-up position as today only a few have any compelling competitive response or alternative to
OTT app video calling service innovation. OTT first-movers go from strength to strength, evolving and improving as they
go.
First introduced together with the iPhone 4, FaceTime is Apple’s flagship video chat app for free person-to-person mobile
VoIP calls. Although initially limited to WiFi access, from iOS 6 on, FaceTime for iPhone and iPad supports video chat
over cellular (3G or LTE).
Tango was an early front-runner in video chat, primarily positioning itself as a simple and strong Apple FaceTime
alternative for Android users. Like many OTT apps, Tango has steadily extended its social networking and commerce
capabilities.
Google Hangouts is a culmination of several different Google IP communications efforts, from Google Talk to Google+,
and is designed to be ‘the future’ of the OTT’s flagship telephony product Google Voice.
Viber video chat entered the market as a strong competitor to Apple FaceTime in 2010, and in February 2014 was
acquired by Japanese e-commerce giant Rakuten for $900 million.
After an initially slow-roll to 18 markets, Facebook introduced video calling to its flagship Facebook Messenger app in
May 2015. According to Facebook, Messenger users made over one million video calls during the first two days after the
feature’s launch.

Figure 4: Leading OTT app Video calling capabilities
SOURCE: Public Sources MARKETLINE

DIGITAL COMMUNICATIONS TECHNOLOGY
STEPPING INTO VOICE AND DATA NETWORK
Carriers are moving ahead with early VoLTE and Wi-Fi calling projects, but the prerogative to differentiate these digital
communications services from OTT interfaces in terms of value-added service features is still some way off. Few
operators have successfully managed differentiation in terms beyond ‘better voice quality’.
VoLTE enters into mobile networks

VoLTE is making quiet inroads into mobile networks. The technology creates network efficiencies and will ultimately
produce network OpEx savings as voice and data are managed across one network.
Using the IP Multimedia Subsystem (IMS) network, VoLTE allows mobile operators to evolve their 2G/3G circuit switched
voice service to IP data flows within an LTE environment. With this step, VoLTE has the propensity to deliver up to three
times more voice and data capacity than 3G UMTS, and up to six times more than 2G GSM, according to leading
vendors.
VoLTE delivers enhanced voice quality, often referred to as high definition (HD) voice, or carrier marketed terms which
capture this value proposition. This requires the setup and teardown of dedicated voice bearers from the network core
through to each subscriber in order to protect IP-based voice traffic from disruption by unpredictably "bursty" mobile
broadband data traffic.
Figure 5: Carrier voice evolution to VoLTE
SOURCE: Qualcomm MARKETLINE
Signaling traffic has been steadily ramping up in 3G networks with smartphone volumes and app signaling increasing.
Simply attaching to an LTE network unleashes a sequence of Diameter signaling messages; VoLTE takes the signaling
load to a new level.
For carriers moving to VoLTE, a Diameter Signaling Controller (DSC) investment is often undertaken to load balance and
manage the Diameter traffic.

Wi-Fi access points gaining importance in supporting voice
and video calls
Wi-Fi access points have grown exponentially over the past decade. Previously considered a fixed access technology,
Wi-Fi now complements cellular technologies, extending VoLTE utility with support for both voice and video calls.
Like VoLTE, Voice-over-WiFi (VoWiFi) is IP-based and reuses a carrier’s existing IMS/VoLTE core network infrastructure
to support HD voice and video calls. Both use the same phone number, client and native dialer and naturally complement
one another, providing an operator with expanded coverage.
Introducing VoWiFi necessitates additional security mechanisms to support handover between Wi-Fi, 2G/3G and LTE.
The Trusted Wireless Access Gateway (TWAG) is required for the carriers’ own 3G or LTE access networks (including
small cells) and the untrusted/Evolved Packet Data Gateway (ePDG) is required to authenticate access from home and
public Wi-Fi hotspots.
Figure 6: 5G use cases and technology requirements to support them
SOURCE: Ericsson MARKETLINE
Also like VoLTE, VoWiFi needs a way to give voice packets higher priority than data packets. For the highest quality
voice both the terminal and Wi-Fi access network should implement Wi-Fi Multimedia (WMM). Additionally, the carrier
can define network policies for enabling voice handover between LTE and Wi-Fi using the 3GPP defined Access Network
Discovery and Selection Function (ANDSF) feature.
Native Wi-Fi Calling brings an out-of-the-box, dialer experience which is hard for OTT app interfaces to match.
WebRTC is an alternative route for real time communications

Carriers are struggling to find their place in the WebRTC value-chain, and clearly find it difficult to perceive the
opportunities in a B2B2C context.

Nevertheless, a small handful of carriers are starting to explore the various innovation avenues, from opening an
enhanced calling API for WebRTC to developers to allow third parties to provision browser-based voice and video
services alongside their own online Web interfaces, to launching a B2C brand, to learn more about customer WebRTC
uptake and behavior trends. WebRTC’s main advantage is in being browser-based, extending a carrier’s reach and in
flexibly supporting voice, video and data transfer.
WebRTC is an open project supported by Google, Mozilla, and Opera within the Internet Engineering Taskforce (IETF).
WebRTC provides a capability to initiate and receive real time IP-based communications from within Web browsers using
standard JavaScript APIs. WebRTC, however, is a framework rather than a service and does not include a signaling
protocol, relying instead on negotiation between end points.
Figure 7: Integrating WebRTC clients with carrier IP networks
SOURCE: Oracle MARKETLINE
While WebRTC can operate in peer-to-peer mode over the public internet, carriers can also use WebRTC as a means of
extending their reach, providing value-added consumer and business services integrated with their existing voice and
video services.
In order to provide “carrier grade” quality of service, WebRTC needs to be enhanced with improved security,
interoperability and reliability. This is normally provided by a WebRTC Session Controller (WSC) working in conjunction
with a Session Border Controller (SBC).
In addition to supporting value-added services, WebRTC also provides carriers with a developer-friendly style of network
exposure interface which can be used to open up its network capabilities to third-party developers.

POPULARITY OF DIGITAL COMMUNICATIONS
TECHNOLOGY GROWING
Despite initial sluggish uptake, carriers are now reconsidering the Rich Communications Services (RCS) opportunity as
arguably a best-bet OTT competitive offset in the digital communications space. Furthermore, the Wi-Fi technology,
mesh networking and Web browser-based, real-time communications for voice and video have now been deployed in
voice and video calls.
RCS becomes the standard communication offer

A broader availability of RCS-native devices skirts the need for carriers to market and encourage the take up of RCS
story via downloadable apps. Around 50 carriers worldwide have now deployed RCS, predominantly charged as a
premium VAS or as part of a standard mobile communications package. The future of the technology is inherently
aligned with VoLTE.
RCS is now native on around 40 Android devices, skirting the former user app download requirement, and operators are
starting to rethink RCS’ value in the light of VoLTE and as enabler for new market verticals, such as the connected car.
Carriers in the US, APAC and Europe are looking to align VoLTE capabilities (i.e., simultaneous voice and data and
video calling) with RCS for more advanced IP comms services.
Carriers are investigating the alignment of third-party APIs with VoLTE and RCS. API evolution will allow carriers to stay
relevant by enabling the provision of richer services for OTT partners and enterprise-focused developers requiring
higher-quality features for services such as video conferencing.
Recent RCS carrier launches have eschewed the GSMA’s former customer-facing brand recommendation, ‘Joyn’ brand.
Most new deployments now use carrier branding.
Figure 8: Rich communications services market status
SOURCE: GSMA MARKETLINE
Apple’s commitment to RCS could be the make or break of the entire project. The GSMA, together with leading RCS
carrier proponents, is attempting to put pressure on Apple to rethink its stance towards RCS.

There’s an argument that a failure to consider RCS could pose a risk to Apple’s wearables strategy in the mid-to-longer
term.
Several carriers are now exploring the way RCS, as a native dialer experience, can expedite the exploration of new
communications use cases and applications for IoT, starting with the connected car and smart home.
Wi-Fi calling deployments to date and next steps

Wi-Fi calling has been launched by a large number of different operators, from both mobile incumbents and challengers,
as well as cable and fixed-players, with a wide variation in use case.
Carriers have tended to market new Wi-Fi calling services as a cellular coverage enhancement value-add, especially for
indoor calling.
Cable operators, on the other hand, are positioning Wi-Fi calling more aggressively as a solution for cellular calling
substitution, both at home and abroad, to avoid high roaming costs.
A new generation of MVNOs, spearheaded by Google Project Fi, are looking to Wi-Fi calling to effect competitive access
propositions via steering to the lowest cost available access option. Call handover between Wi-Fi and cellular is still very
much a work in progress, and for the most part unavailable today, or missing from the majority of commercially available
services. A set of new partnerships at the MVNE and MVNA level have emerged to expedite the provision of Wi-Fi calling
at the MVNO level.
Figure 9: Key carrier Wi-Fi calling deployments to date, features
WebRTC developed by major carriers

Web browser-based, real-time communications for voice and video without the need for plug-ins opens up myriad
partnership and commerce opportunities; carriers are still attempting to figure out their position in the value chain.

Telenor is experimenting with WebRTC on an OTT B2C level, via its functionally independent appear.in project.
Appear.in allows any user to set up a group video conference from a Web browser, and invite other users without
downloading an app. Telenor is using appear.in as a learning vehicle for potential future implementations within its carrier
services portfolio.
AT&T is one of the first to introduce an Enhanced WebRTC API program that includes several enhancements to the API
standard, such as a signaling path to enable phone calls to fixed and mobile lines, plus calling capabilities; caller ID and
virtual numbers. The AT&T Enhanced WebRTC API program emerged from beta in August 2015, to allow developers to
add real–time voice/video communications to any Website or online application. Key targets include conference
solutions, contact centers, telemedicine and collaboration applications.
Telefonica has aligned its multi-device calling and messaging application TU Go with WebRTC, to allow users to place
and receive calls from within compatible web browsers, without the need to download an application for desktop use.
Telefonica acquired video platform TokBox in 2012, and has evolved the company to be a leading Platform-as-a-Service
provider for enterprise WebRTC, via the OpenToK API. In 2014, Telefonica evolved its Spanish mobile social network
brand, Tuenti, with a multi-device VozDigital app, including browser-based calling. In early 2015, Telefonica enhanced its
flagship multi-device mobile IP Comms service TU Go with WebRTC capability, to allow users to in-browser calling from
a Firefox or Chrome browser using the same Tu Go credentials. The launch was a first mobile carrier channel B2C
implementation for WebRTC. In October 2015, TokBox struck a partnership deal with x-Mobility, the MVNA for 3
Hutchison in the UK and Ireland to allow its x-Mobility’s own set of MVNO customers to launch new voice and video
communications services using the device, OS and browser-agnostic WebRTC service delivered by TokBox.
Mesh networking's march toward market success

Mesh networking is gathering pace as a consumer application for ‘dead devices’; its impact on potential carrier
connectivity revenues for IoT has yet to be properly explored.
Still in its infancy, mesh networking allows OTTs to establish crowdsourced and hyper-local connectivity for potentially
millions of users and ‘dead devices’ (devices with WiFi and Bluetooth features, but no cellular SIM) in a daisy-chain
mode, allowing large groups Internet connectivity where access is limited or restrained.
The app’s fundamental premise has the potential to cut carriers out of the one user-one SIM connectivity equation for
new wearable form factors and other WiFi-enabled devices.
Figure 10: Open Garden’s network vision
SOURCE: Open Garden MARKETLINE

Open Garden’s pioneer mesh networking app FireChat launched in March 2014 allowing large groups to message via
public mobile chat rooms. Open Garden claims six million FireChat users. In July 2015 FireChat private messaging
launched.
Open Garden’s FireChat app has been used widely at public demonstrations and festivals, from the Occupy Central
Hong Kong uprising in 2014 to multiple music and community festivals.
Jott, the company behind the Jott mesh networking app amassed more than 500,000 monthly users and one million app
installs in its first three months of commercial service earlier in 2015. The app targets teens with ‘dead devices’ in school.
Open Garden has launched a hardware GreenStone product, marketed as ‘the first messaging beacon’ to allow peer-to-
peer connections to spread even further, enabling free messaging anywhere.

BROAD ARRAY OF COMPETITORS INNOVATE
FASTER IN DIGITAL COMMUNICATIONS
The competition among carriers causes threats from a wide variety of players and business models. Although carriers
are still struggling to achieve fast progress with their B2C digital communications projects, far too few are giving thought
to the implicit external monetization opportunities.
Competitive digital communications solutions

Technology is sweeping away the former feature access disadvantage which once held MVNOs so comfortably far away
from digital communications innovation. A new breed of IP comms MVNEs and MVNAs, together with Wi-Fi-first players,
look set to challenge carrier Wi-Fi calling efforts with better interfaces, stronger cost-saving propositions and improved
digital promotion strength.
Several global OTTs such as LINE and even Facebook are starting to describe mobile VoIP as ‘better voice quality’, in
comparison to cellular voice. Without a set of strong VoLTE value-added services to point to, carriers risk seeing their
own headline ‘HD voice’ for VoLTE end user value message challenged.
In emerging APAC markets, handset OEMs getting into the data sponsorship game, and this trend – should it spread –
could effectively cut carriers out of the device upgrade process, particularly those carriers in markets which have now
turned to device financing as a subsidy alternative. In APAC, sponsored data for a wide area of apps, including mobile
VoIP and IM interfaces.
To date, the isolated community nature of messaging OTT platforms has been the key drawback for consumers looking
to migrate all communications to their favorite app interface. The requirement to provision off-platform calling to non-
community users has been a drain on OTT resources and development time. But that could easily change. Some of the
largest global app interfaces could start building ‘bridges’ between communities; Facebook has already piloted such
features between its key Facebook app and WhatsApp.
Any rise in mesh networking technological progress and app adoption could significantly challenge carrier IoT
connectivity ambitions, besides the anticipated loss in access revenue as early adopters use mesh networking to hook
‘dead’ devices (Internet enabled, without a SIM or Wi-Fi access) to daisy chain to community connectivity platforms. To
date, only a small handful of app developers have tested market appetite for community connectivity, but the impact on
the IoT market has yet to be fully explored.
Carriers see opportunities in digital communications

Although carriers are still struggling to achieve fast progress with their B2C digital communications projects, far too few
are giving thought to the implicit external monetization opportunities.
Carriers should consider following AT&T’s lead in creating a simple, easy-to-access API program to allow a wide range of
enterprises to enhance their own Websites, applications and online stores with WebRTC voice and video calling in-
browser experiences. WebRTC could prove to be a valuable boost to the telco wholesale business.
With RCS native device choice now reasonably broader, carriers should re-focus their calling innovation efforts on the
dialer experience, and innovate dialer incentives to dissuade users against going to a dedicated app for a
communications experience. All carriers should also be watching SK Telecom’s T Phone 2.0 innovation carefully, to
understand the external monetization opportunities in opening calling KPIs to third parties. OTT messaging players are
significantly ahead of carriers in IP Comms product feature excellence, yet few have invested much in the area of new
connected devices, such as wearables. Carriers should consider honing their communications efforts in this area, for
entirely new services around voice and video calling differentiation.
All carriers have to re-think the boundaries of traditional one-to-one communications to fully grasp the digital
opportunities for value-added experiences, as both a B2C service and a wider B2B2C two-sided business model
opportunity with partners.

CONCLUSION
Carriers evolve mobile messaging application interfaces to
incorporate new voice and video communications offerings
OTTs are innovating faster than telcos. Mere ‘catch-up’ efforts are insufficient to stem the challenge to core carrier voice
and messaging revenues.
RCS has struggled to acquire broad mobile carrier community acceptance, but the dearth of success stories in the carrier
app-based IP comms camp points back to the benefits of backing a cross-network, cross-carrier communications
interface.
Carriers need to recognize that the same technology, in another player’s hands, can be bent to an entirely different set of
unfriendly strategic objectives. Carrier Wi-Fi Calling, for example, is frequently positioned as a cellular coverage
improvement. OTTs and MSOs will likely leverage the same technology to challenge on basic service pricing terms.
Early RCS deployments that have been reliant on a downloadable app have demonstrated weak initial take-up. The
choice and variety of available native RCS devices is now broad enough for carriers to consider a more ambitious
strategy for rich communications services.
Carriers need to enhance their VoLTE services with end-user benefits and value-added service features which are more
compelling than merely 'better voice quality'. OTTs will be quick to claim the same for mobile VoIP; several are already
doing so.
Although RCS is often thought of as a primarily B2C communications tool, carriers can also stay relevant by enabling
richer services for OTT players and enterprise-focused developers requiring higher-quality features for services such as
video conferencing.
Few carriers are giving enough thought to the B2B2C opportunities implicit in WebRTC. Far too many continue to view
the technology as a threat to their existing calling business, as opposed to an opportunity for external monetization.
Provisioning easy-to-access developer tools and WebRTC APIs for in-browser communications has the potential to
revolutionize the carrier wholesale business on a whole new digital level.

APPENDIX
Definitions
Air Interface - The method by which data (including voice) is transmitted over the air – between base station and user –
in cellular systems. Air interfaces are, generally, specified by standards bodies and generally evolve from one technology
to the next. Examples include TDMA (2G GSM), WCDMA (3G UMTS/HSPA) and OFDM (LTE).
Caller ID - A value-added telephone service that allows a subscriber to identify a caller before answering by viewing the
displayed caller's telephone number which appears on the recipient’s screen.
GSMA - The GSM Association, formed in 1995, is an association of mobile operators and related companies supporting
the standardization, deployment and promotion of the GSM mobile telephone system.
IoT - The Internet of Things, a current movement imbibing ‘ordinary objects’ with both sensors and Internet connectivity,
and the ability to report information for a wide range of scenarios and use cases.
IP Comms - Internet protocol communications.
P2P - Peer-to-peer computing or networking is a distributed application architecture that partitions tasks or work loads
between peers.
RCS - Rich Communication Services program is a GSM Association (GSMA) program for the creation of inter-operator
communication services based on IP Multimedia Subsystem (IMS).
VoLTE - Voice over LTE, which is based on the IP Multimedia Subsystem (IMS) network, with specific profiles for control
and media planes of voice service on LTE defined by GSMA in PRD IR.92.
WebRTC - Web Real-Time Communication is an API definition drafted by the World Wide Web Consortium (W3C) that
supports browser-to-browser applications for voice calling, video chat and P2P file sharing without the need of either
internal or external plugins.

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MarketLine Case Study

Publication Date: April 2016

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

Carrier forced to develop their services ............................................................................................................................... 5

OTT threat moves beyond messaging to voice ............................................................................................................... 6

VoLTE enters into mobile networks ................................................................................................................................. 9

WebRTC is an alternative route for real time communications ...................................................................................... 10

Popularity of digital communications technology growing ................................................................................................. 12

RCS becomes the standard communication offer ......................................................................................................... 12

Wi-Fi calling deployments to date and next steps .......................................................................................................... 13

WebRTC developed by major carriers ........................................................................................................................... 13

Mesh networking's march toward market success......................................................................................................... 14

Broad array of competitors innovate faster in digital communications ............................................................................... 16

Competitive digital communications solutions ............................................................................................................... 16

Carriers see opportunities in digital communications ..................................................................................................... 16

Ask the analyst .............................................................................................................................................................. 19

About MarketLine .......................................................................................................................................................... 19

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

Figure 2: Voice ARPS in 2020............................................................................................................................................. 6

Figure 3: OTT Voice demonstrates rapid progress in 2015 ................................................................................................. 7

Figure 4: Leading OTT app Video calling capabilities ......................................................................................................... 8

Figure 5: Carrier voice evolution to VoLTE .......................................................................................................................... 9

Figure 6: 5G use cases and technology requirements to support them ............................................................................ 10

Figure 7: Integrating WebRTC clients with carrier IP networks ......................................................................................... 11

Figure 8: Rich communications services market status..................................................................................................... 12

Figure 9: Key carrier Wi-Fi calling deployments to date, features ..................................................................................... 13

Figure 10: Open Garden’s network vision ......................................................................................................................... 14

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

Global carrier mobile messaging volumes and revenues

Figure 1: Average monthly SMS Decline 2015-20120

SOURCE: Pyramid Research MARKETLINE

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SOURCE: Pyramid Research MARKETLINE

OTT threat moves beyond messaging to voice

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SOURCE: Pyramid Research MARKETLINE

Leading OTT messaging apps dominate in video calling feature

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SOURCE: Public Sources MARKETLINE

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VoLTE enters into mobile networks

Figure 5: Carrier voice evolution to VoLTE

SOURCE: Qualcomm MARKETLINE

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Figure 6: 5G use cases and technology requirements to support them

SOURCE: Ericsson MARKETLINE

WebRTC is an alternative route for real time communications

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Figure 7: Integrating WebRTC clients with carrier IP networks

SOURCE: Oracle MARKETLINE

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RCS becomes the standard communication offer

Figure 8: Rich communications services market status

SOURCE: GSMA MARKETLINE

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Wi-Fi calling deployments to date and next steps