Telecoms operators will see their traditional voice based revenue streams decline by around 45 per cent by the end of 2024, according to a new industry study.
A new report published by Juniper Research claims that network operators’ voice based revenues will fall from their current level of $381 billion to just $208 billion by 2024.
The loss of revenues will be fuelled by the rise in popularity of voice over IP (VoIP) services provided by OTT players such as Facebook and Skype. Over the past five years, the number of OTT players competing in the telecoms and IT sectors has risen by 88 per cent.
Increased 4G coverage in developing markets and the rollout of 5G in the more affluent regions of the world will fuel a sharp increase in uptake of alternative voice base services such as Voice over IP (VoIP), Voice over LTE (VoLTE) and Voice over 5G (Vo5G)
“The study found that while this trend will contribute to declining voice revenue for operators, 5G proliferation will propel a number of nascent mobile voice and video services; generating fresh revenue streams for service providers,” a spokesman for Juniper research said.
The study urges telcos to invest in the Artificial Intelligence initiatives and technology that will underpin their next generation networks as a way to mitigate against the decline in their traditional voice based revenue streams.
“Establishing a 5G-enabled IMS (IP Multimedia Subsystem) infrastructure for VoLTE will provide a pivotal foundation for future voice services rollouts, which operators can monetise in upcoming years,” the Juniper spokesman said.