Fourth generation (4G) data services are in the deployment stage, but is will be a few years until there is ubiquitous LTE coverage. Meanwhile, there are competitive threats emerging against incumbent carriers' core voice services. This is coming at a time when all bearer services (voice and data) are becoming marginalized due to market expectations, economic conditions, and a coming supply side expansion in terms of network capacity.

This represents an opportunity and threat to incumbent network operators as well as their suppliers and even the competition. Certain competitors will become acquisition targets as carriers realize their transition strategy from inexpensive alternatives, to cheaper carrier branded offerings based on 3G. The incumbent carriers must deal with the threat of these "dial around" wireless VoIP providers by offering their own "dialable" VoIP.

This report evaluates the opportunity for incumbent mobile network operator to offer "dialable" VoIP services via VoLTE. This is in contrast to the many so called Over the Top (OTT) wireless VoIP providers that do not rely upon 4G. They instead offer OTT services via 3G/WiFi and require the user to download software onto a smart phone and access their offering via their carrier's data plan.

Audience:

• Over-the-Top VoIP providers
• Incumbent wireless network operators
• VoIP infrastructure and application companies
• Value-added Service (VAS) application developers

Key Findings:

• Offering 4G/LTE VoIP via VoLTE represents an implementation and operational challenge for incumbent operators
• Incumbent operators must offer branded OTT wireless VoIP as a transition and also a solution for outbound roaming
• Incumbent network operators are in the best position to leverage presence and other core next generation network capabilities
• Certain key next generation applications, such as the Dynamic Address Book, will enable incumbent operators to differentiate themselves

       
TABLE OF CONTENTS

Executive Summary
Introduction
Cellular 4G is LTE
LTE Network Architecture
LTE Air Interface
LTE Applications
Voice over LTE (VoLTE)
Voice over LTE Alternative: CSFB uses 3G
Voice over LTE Alternative: VoLGA uses Circuits with LTE
Over-the-Top (OTT) Wireless VoIP Providers
OTT Wireless VoIP Provider Business Models
Challenges and Opportunities to Incumbent Operators
The Value of Voice Services
The Industry Impact of OTT Wireless VoIP
The Industry Impact of VoLTE
Incumbents Must Fight Back with Value-added Services
Incumbents Must Leverage Next Generation Networks
Incumbents must offer "Diable" VoIP
Summary and Recommendations
Appendix
SDP and IMS
What is a Service Delivery Platform?
SDP Architecture
What is IMS?
IMS Architecture