Industry Analysis

The Onslaught of OTT

saurav — Mon, 12 Mar 2018 11:52:11 +0000

The Onslaught of OTT saurav Mon, 03/12/2018 - 17:22

Experts say that Year 2010 was the highest point for the SMS industry, with an estimated 3.5 billion active users (source: wiki). At that time, about 80 percent of all mobile subscribers largely depended upon the traditional messaging service provided by telecom operators.

The following years saw a rapid development in internet-based communication, accompanied by the adoption of smartphones. With the advent of compatible operating systems like Android and iOS, mobile-based apps became the preferable platform for instant messaging rather than web-based real-time communication.

The new development caused unprecedented changes mostly affecting the P2P messaging sector. Traditional SMS operated by Telco took a backseat with increasing users favoring OTT-enabled messaging apps.

The Data Talks

A report from the previous year by Ovum has estimated that the telecommunications industry will lose a combined $386 billion between 2012 and 2018 from customers using OTT voice applications (Source: New Telegraph). The report also shows that over 150 million users have dropped out of subscriptions.

This is attributed to the increased availability of internet platforms that consumers use over affordable data schemes facilitated by LTE networks. Many of them are switching over to data-based solutions for most forms of communication including messaging and VoIP.

OTT Share of traditional telco services will dramatically increase by 2018 | Source: McKinsey & Company

Trying to Reverse the Onslaught

As we can see that the telecom industry is currently dominated by major OTT players who are cannibalizing across various services like messaging, voice calls, pay TV, videos, etc. On the other hand, operators have been struggling since the rapid adoption of the internet. Presently, machine learning; AI, cloud computing, etc. are further assisting the intuitiveness of OTT applications, facilitating a more personalized experience for their users.

Some telecom operators are redefining their strategies and business models to adapt to a data-driven ecosystem. For example, numerous operators in Africa like Airtel, Cell-C, Safaricom, etc. are diversifying their services into new revenue streams like mobile money, media, insurance, e-commerce, etc. (Source: Gadget South Africa).

While the progression of 4G LTE has been accelerated the usage of data-intensive OTT applications, it has also been a significant enabler for operators. LTE-based operators are acquiring more and more users by offering HD quality voice calls and high-speed data bundles.

Owing to their extensive subscriber base, 4G operators have an excellent premise to build relevant data-based solutions for their subscribers. Considering that they have significant access to an extensive customer database and analytics, operators can harness them to develop intuitive services for the users.

Number of 4G mobile subscribers worldwide from 2010 to 2020 (in 1,000) | Source: Statista

Experimenting with Hybrid-OTT Apps

Data has become the linchpin of today’s telecom and digital landscape. This is further accelerated by the rise of LTE technology which is pushing telecom towards new growth zones.

Now is the time for telecom operators to work towards a Hybrid-OTT app that can deliver services from the cloud over data, as well as over multiple carrier networks. Operators can leverage upon their voice calling capabilities, over which they have optimal control.

Therefore, WiFi enabled calls are a promising ground for network operators who can tap significant revenue opportunities. They can offer robust voice communication by combining the best of GSM and data. When voice traffic travels over data or WiFi, new use cases and flexibility are generated for the users, which bring the power of internet into their hands.

Enabling a Virtualized, SIM-independent calling experience

It is also an opportunity for carriers to offer seamless calling and messaging that provides the customizable user experience of OTT apps but also interconnects into their network functions. Thus, a user can receive voice calls and SMS to any of their mobile number(s) over data, and also make outbound calls and send SMS over data, to any number, from any of their mobile number(s).

GSM-VoIP Call Conversion

The proliferation of data elicits a generation of OTT apps that partially address the communication challenges of mobile users. On the other hand, hybrid OTT approach, with telco and internet connectivity, can result in a unique suite of app-based solutions that mobile operators can roll out to their subscribers. Inspired by the idea of virtualization of numbers, GSM-VoIP call conversions, and visual voicemails, we can focus on technologies and innovations that define the next generation telecom experience.

To sum up, amidst the stiff competition and challenges posed by cloud-based OTT apps, telecom operators still have the time to carve out their niche. This can only begin by re-imagining ‘voice communication’ in a data era, which combines the best of GSM and VoIP.

A distinct hybrid-OTT approach is the way to go forward. It can also enable mobile operators to capture the ‘otherwise missed revenue’ from the calling party, and work towards increasing brand loyalty.

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Sun, 03/25/2018 - 12:00

The Technology Paradigm Constituting the Mobile Ecosystem

admin@kirusa — Fri, 24 Nov 2017 07:53:52 +0000

The Technology Paradigm Constituting the Mobile Ecosystem admin@kirusa Fri, 11/24/2017 - 13:23

A recent GSMA report features that two-thirds of the world’s population are now mobile subscribers. Approximately 5 billion people have a mobile connection while recognizing its potential as a versatile platform to access global mobile solutions and technologies.

The Emergence of Internet Data Traffic

Mobile has become a gateway to the vast amount of services and applications available on the cloud. With each subscription, every individual increasingly becomes aware of the possibilities that internet offers. As a result of which, there has been a 70 percent increase from Q1 2016 to Q1 2017 (Ericsson reports).

The Smartphone Symbiosis

GSMA shows us that smartphones account for over half of total mobile connections globally. It is mostly the emerging markets in Asia-Pacific, Africa, MENA, etc., which are experiencing faster smartphone subscription as compared to affluent markets.
Despite lower penetration, smartphone subscription in developing economies is set to skyrocket, especially in the more populated regions like Asia-Pacific and Africa. Therefore, we can expect more than a billion people using mobile to access the internet by 2020 (GSMA report).
One can conclude from these facts that the increase in internet data traffic is happening in tandem with higher mobile/smartphone subscription. Smartphones are more adaptive to higher data volume and support plethora of applications over the cloud that most users.

The Rise of LTE networks

Increased internet data traffic is being attributed to the rapid uptake of LTE network connection. LTE has fundamentally reconfigured internet access by mobile phones. It is easier for LTE backed devices to navigate faster while seamlessly browsing multiple websites and cloud-based applications.
As a result, there has been a massive difference in the way people connect over their devices. There is an increasing shift towards cloud-based mobile experience, which is being powered by LTE technology.

Faster Deployment in Emerging Economies

We are well aware that most of the population across the world is still in the process of embracing 4G network with higher penetration in developed economies. However, emerging markets in Asia-Pacific, Latin America, and Africa are set to represent 35 percent of the 4G increase and lead to a geographic shift in internet users (GSMA)
With more than 540 million people estimated to switch over to an LTE network by the end of 2017 (Ericsson), the mobile industry is gearing up for a simultaneous growth in the global internet data traffic. There will be an overall transformation in the telecom space with mobile increasing becoming a means to meet dynamic ends beyond communication.

5G and the Advent of Connected Devices

With LTE networks gearing up for further evolution, the 5G network is on the rise and estimated to take over by 2020 (Lanner-America). The 5G technology promises higher speed and faster data transfer. Hence, it is a move towards boosting the network of connected devices while allowing more devices/objects to exchange data and avoid over-crowding.

Implications for Voice Communication

There is no doubt that 5G or more robust LTE is exponentially going to enhance our experience of communication. VoIP will mainly reap the benefits of a 5G upgrade while avoiding ‘packet’ loss and poor network connectivity that 4G is yet to overcome. This will be made possible because 5G will exceed 4G’s threshold of data upload.
Enterprises will primarily be at the receiving end of these benefits. Apart from having multiple connected devices in a business environment, they will also avail improved video conferencing, daily business operations assisted by virtual and augmented reality. This will be entirely executed minus the delays in the network.

Need for Robust Infrastructure

The deployment is also set to significantly improve coverage in remote areas and inside buildings because of multiple transmitters and receivers spread over larger distances. To achieve this, there has to be a consolidated focus towards uniformly developing network infrastructure across all regions. As per Ericsson report, more than 50 percent of our population does not have internet access due to poor access and economic constraints.
Mobile will continue to be the focus of cumulative technological development. It laid the foundation for a plethora of innovations that we avail today. Consumers rely on the portability of cell phones to access all kinds of network and applications and thereby, control all other devices. We can only look forward to the new possibilities that mobility conjures.

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Wed, 11/15/2017 - 12:00

The State of LTE in 2017

admin@kirusa — Fri, 24 Nov 2017 07:52:54 +0000

The State of LTE in 2017 admin@kirusa Fri, 11/24/2017 - 13:22

According to a recent report by Ericsson, more than 540 million people would have switched over to a VoLTE network by the end of 2017. With LTE on the rise, the telephone ecosystem is propelling towards new growth zones.

This is accompanied by an exponential usage of smartphones that support the LTE technology. Across the world, increasing consumers are on the lookout for versatile data-intensive applications. More sophisticated devices are high on demand because they are compatible with this new technology.
LTE exclusively supports higher data volume and faster network connectivity. It enables operators to deliver high-quality voice calls and data services across several devices. As a result, more and more users are conveniently sharing files, streaming live audio/video, engaging in real-time communication, social media networking, face timing, etc. This is fuelled by larger device screens, higher resolution and better platforms that support faster streaming, as per Ericsson reports.

The Explosive Growth of Internet Traffic

These developments have significant implications for global mobile internet traffic. The report demonstrates that there has been an impactful growth in data traffic that grew by 70 percent between Q1 2016 to Q1 2017.

Subsequently, the report also observes emerging patterns regarding data consumption and how subscribers use their devices. It also underlines the growing popularity of VoWi-Fi calling and hints towards possibilities that network operators may explore to extend their voice services.
Vo-WiFi is a by-product of VoLTE and runs on the core IMS network. The former has vast prospects for mobile Network operators who have begun looking at it in terms of quality voice calling.
The most significant benefit of these new technologies, especially Vo-Wi-Fi can be reaped on the ‘voice calling’ front. Perhaps, we can begin to anticipate substantial improvements in the voice calling experience.

Delivering an Enhanced Voice Calling Experience

Everybody wants to communicate without hassles, and this has been the core premise of telecommunication. Calls are often interrupted due to poor network connectivity, and before VoLTE, network resources were quickly eaten up on a 3G network.
With VoWiFi, subscribers would not have to continually depend on the stability of a network to complete their conversations. This is because voice calls and messaging will be transferred on to existing Wi-Fi networks allowing subscribers to make and receive high-quality phone calls.
WiFi enabled calls are a promising ground for network operators who can tap significant revenue opportunities. They can mainly tackle the problem of indoor network coverage wherein it often becomes difficult for networks to penetrate homes. Considering that most calls are made indoors, operators can make use of this habit and translate calls into Wi-Fi calling to enable a steady communication.

How it Voice over WiFi different?

Calls operated over WiFi can reduce operating costs because the call placed upon their network would be carried over to the user’s internet/broadband.
This is fundamentally different from an OTT enabled voice calls because VoWiFi doesn’t require users to open an app.
Therefore, the call quality is in no way compromised while at the same time avoiding the chances of a call being dropped. Most importantly, the operator remains in-charge of the entire process and provides a better calling experience than OTT-generated VoIP.
With the growing movement towards VoLTE and VoWifi, we can begin to anticipate greater stronghold for operators over OTT applications.
With the new network being backed by more smartphones and devices, people would increasingly prefer quality calls at lower costs, especially ones that do not require both parties to necessarily have the same app.
Network providers and VAS players can take note of this significant evolution and work towards devising solutions or services that further assist the users.

What to expect on a global front?

However, the report takes into account significant differences in traffic levels across markets, regions, and operators.

It is to be noted that North America and Western Europe have the highest total traffic volume against user subscription. This is attributed to higher penetration of high-end user devices and well- built out LTE networks, accompanied by affordable schemes that offer large volumes of data.
On the other hand, as the most populous region, Asia Pacific has the largest share of mobile data traffic despite the slow uptake of LTE network in less developed countries. Countries like South Korea, Japan, Singapore and Hong Kong are witnessing higher adoption.
This is followed by the region extending over Central and Eastern Europe, Middle East and Africa, which are set to experience an eleven-fold increase of LTE adoption by the end of 2022. It is worth noting that more than 50 percent of the world’s population (Ericsson report) does not have access to the internet and the focus must be primarily on improving mobile network infrastructure.
On the brighter side, on an average, we have more than one million broadband subscribers being added every year, and the key drivers are increasing digital skills, decreasing smartphone prices and continued deployment of 3G and 4G broadband technologies (Ericsson)
The steady implementation of LTE across the world can also tackle hefty roaming charges overseas by offering bundled services. The seamless connectivity between WiFi and Cellular IP networks can enable calls anywhere without being reliant on the network while reducing costs for both the user and operator. We will witness a fundamental shift in the international calling process.

Wrapping Up

This development towards LTE technology is on the verge of bringing forth major implications for telecom carriers. With mobile networks being seen in a new light, operators are on their toes catching up with more dynamic, sophisticated technologies while they redefine the voice calling experience.

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Thu, 11/23/2017 - 12:00

Connecting The Unconnected

admin@kirusa — Fri, 24 Nov 2017 07:51:48 +0000

Connecting The Unconnected admin@kirusa Fri, 11/24/2017 - 13:21

Despite increasing smartphone adoption and escalating data traffic, around 3.7 billion people are yet to begin using the internet. The number mostly pertains to low-income, developing economies. GSMA reports that India and Sub-Saharan Africa account for 42 percent of the world’s unconnected population.
Users in developed economies account for 81 percent of worldwide users, along with higher penetration rates. (Source: ITU).

Source:Pew Research Center

The Device Factor

The global distribution of smartphones significantly shapes the percentage of internet penetration across regions. Feature phones continue to have higher market share worldwide as compared to smartphones. There is a better distribution of feature phones across the world because the majority of the population cannot invest in smartphones. According to Strategy Analytics Director Ken Hyers, “Feature phones today still account for one in five of all mobile phones bought worldwide, and the category is surprisingly larger than many think.”
It is mostly the developed economies that have a more significant market share for smartphones. South Korea tops the chart with 88 percent penetration, followed by other affluent economies like Australia, Israel, USA, Spain New Zealand, etc. Emerging markets occupy the lower rungs with less than 50 percent penetration. (Source: Wikipedia)

Source: MarketingCharts

What can we take from the Figures ?

GSMA has categorized the GSMA mobile connectivity index to quantify the barriers to the mobile internet across four key enablers-Infrastructure, Affordability, Consumer Readiness, and Content. With the help of 39 specific indicators feeding into 13 dimensions, the index measures the performance of 150 countries against the key enablers. The analysis helps to uncover the global disparities that exist in terms of internet penetration.

Infrastructur

Mobile Infrastructure, network coverage, spectrum, electricity, etc. are indispensable for efficient digital access. Without these components, internet access is a faraway reality. According to the data presented by GSMA, most countries in Sub-Saharan Africa are not using the internet because of insufficient infrastructure at a rate of only 32.1 percent. Affluent economies in Western Europe, North America, and East/South East Asia score highest in terms of infrastructure. High capacity fixed networks; especially optical fiber are a prerequisite for undeterred voice communication and internet connectivity. The optical fiber is reported to have reached internet speeds of over 100 petabit/kilometre per second (Source: Wiki).
However, due to complicated and expensive installation process that the optical network entails, most emerging economies are yet to utilize its potential. Therefore, several countries are still outside the advanced 4G networks because they still rely upon traditional copper networks.

Source: Zion Research Analysis 2017

Affordability

As one of the key enablers, affordability mainly affects digital inclusion. It takes into account various factors like income distribution, taxation, mobile tariffs, and handset price (GSMA) across all regions.
Amongst all these factors, the most pressing one is the affordability of data. Despite increasing mobile subscription with 5 billion subscribers and 2.3 billion smartphone users (GSMA), most people in the emerging markets are not coming online because of relatively expensive data plans. Most data schemes released by network carriers do not deliver the desired value for money. Several users living within a 3G/4G zone own a smartphone without an internet connection because besides being costly, data packages in emerging markets do not meet their requirements.

Consumer Readiness and Content

Consumer readiness is understood in terms of basic factors like literacy, awareness, interest, and conviction. It also includes equal access for all genders to strive towards sustainable goals and for a holistic representation in the digital space.
According to GSMA, consumer scores are lower in the developing economies. This is due to the gap that exists between the user and the content provided on the cloud, assisted by economic and social determinants.
Consumers in emerging economies are striving to move higher in terms of financial capabilities and digital awareness. Not everyone has access to equal financial gains and opportunities due to unequal distribution of resources. Priorities and use cases vary across markets. Therefore, there is a significant disconnection between consumers and the content being circulated across networks.
Several users in the emerging markets misunderstand the internet as solely a medium of entertainment, thereby, remaining unaware of various functional services like e-governance, e-banking, mobile money, transportation, e-learning, etc. Many users lack necessary skills required to explore the internet. The process of browsing is further complicated by challenges posed by the unavailability of content in local language. Most consumers would instead browse in a native language.

Towards Holistic Digital Inclusion

Gathering from the report, we can conclude that infrastructure, affordability, consumer readiness, and content are the key foundation for digital inclusion.
Emerging markets have to be assisted with a systematic approach towards these enablers.
The user is always at the core of every initiative; hence, efforts must be made to understand the key drivers of their needs.
Along with strong, high-performing infrastructure, network providers and policy makers need to recognize the cultural environment of users, especially when it comes to women consumers. It is a known fact that most women in developing economies are still striving for equal access and income and without representing all groups across gender, race, class, etc. we cannot hope for a fair digital inclusion.
Finally, as a significant component, content primarily motivates and drives the user’s interest. Therefore, the focus must always rest upon its benefit and relevance.

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Industry Analysis

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Blog Date

Fri, 11/24/2017 - 12:00

Industry Analysis

The Onslaught of OTT

The Data Talks

Trying to Reverse the Onslaught

Experimenting with Hybrid-OTT Apps

Enabling a Virtualized, SIM-independent calling experience

GSM-VoIP Call Conversion

Tags

The Technology Paradigm Constituting the Mobile Ecosystem

The Emergence of Internet Data Traffic

The Smartphone Symbiosis

The Rise of LTE networks

Faster Deployment in Emerging Economies

5G and the Advent of Connected Devices

Implications for Voice Communication

Need for Robust Infrastructure

Tags

The State of LTE in 2017

The Explosive Growth of Internet Traffic

Delivering an Enhanced Voice Calling Experience

How it Voice over WiFi different?

What to expect on a global front?

Wrapping Up

Tags

Connecting The Unconnected

The Device Factor

What can we take from the Figures ?

Infrastructur

Affordability

Consumer Readiness and Content

Towards Holistic Digital Inclusion

Tags