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Hosted Mobile VoIP Will Help Operators Monetize 4G Investment

 
August 18, 2011


By Rajani Baburajan, TMCnet Contributor
 

Even with Mobile VoIP’s giant revenue promises for 4G operators, there is still the struggle to choose between building and managing an in-house VoIP platform or partnering with a cloud-based, hosted VoIP solution provider, Haig Sarkissian, principal Consultant of Wireless 20/20 (News - Alert) recently noted.

To help put operators at ease, recent research conducted by Wireless 20/20 proves that mobile VoIP can increase the ARPU and ROI of 4G operators when compared to offering data only services. The study also recommends cloud-based delivery solutions over in-house mobile VoIP platforms.

Although the average VoIP revenue contribution per end-user is largely the same in both models, the investments needed and the ROI vary drastically depending on whether an in-house approach or a hosted solution is used, Sarkissian said.

According to the research, launching 4G mobile VoIP services will result in a 25-50 percent increase in ARPU, a 10 percent increase in Internal Rate of Return (IRR) and a 5X-10X increase in Net Present Value versus a data-only service strategy.

TMCnet caught up with Sanjit Chatterjee (News - Alert), director of Global Marketing for mobile VoIP provider REVE Systems at ITEXPO West 2010. Check out that interview below.

Further, the study concluded that deploying a cloud-based hosted mobile VoIP solution could further increase IRR by an additional 5 percentage point for many operators.

By comparing the benefits of the two implementation options for different types of operators, the study also concluded that cloud hosting is more beneficial to all of them. Operators that deploy an in-house mobile VoIP platform require large CapEx investment and the operating costs of an in-house solution are in the range of 30-40 percent of the total VoIP revenues, in addition to call termination charges.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Stefania Viscusi

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