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The mobile core is changing. Fast. Mobile network operators around the globe are embracing the transition from legacy mobile technologies to next generation infrastructures and the new LTE core has a prominent role in adding intelligence to the network, enabling new functionality and supporting new services.
To date, more than 300 global mobile operators have committed to LTE network investments, and industry analyst firm, Strategy Analytics, predicts that there will be 1.6 billion LTE connections by 2017. Mobile operators are increasing investments in LTE access networks and the enhanced packet core to satisfy the consumer’s increasing demand for faster, higher volume mobile data. To recover these investments, many operators seem focused on revenues from the LTE broadband data services only. To increase revenues beyond data plans, LTE operators will also need to sell services that run over LTE, such as voice over LTE, rich communications services and other value-added services.
Voice has always been the main service offering and revenue generator in the operator’s portfolio, but mobile consumers have been increasingly turning to over-the-top VoIP and video applications such as Skype and Apple’s FaceTime. And with better data connections enabled by LTE, these services will increasingly support high-definition audio and video services, further wooing consumers away from operator-hosted offerings. Now is the time for operators to include IMS deployments with their LTE rollouts to enable the delivery of cutting-edge IP-based voice and video services, over and above the LTE data plan revenues, to defend their traditional voice revenue streams from these OTT rivals, or operators may also provide their own OTT services
VoLTE is based on a standards-based IP multimedia subsystem architecture, with IP media processing delivered by the media resource function. VoLTE is delivered, alongside data and video, through a single IP-based converged packet core, driving capital expenditures and operating expense savings, while freeing up 3G spectrum for future LTE growth. Some LTE operators are utilizing circuit switched fallback, which drops voice calls back to the 3G network, in order to support voice calls for LTE mobile customers. However, CSFB is not a long term solution for a successful operator business strategy. One problem is that a CSFB strategy requires operators to manage two networks in parallel – their 3G and LTE networks. A CSFB strategy also postpones the ability to re-farm legacy 3G spectrum for LTE access network growth. This is why global operators have come to the consensus that the only route to ensuring high quality, reliable voice is through VoLTE.
So is 2013 the year of VoLTE? We recently talked with Strategy Analytics and they believe that South Korea, Japan and the United States will lead the way with VoLTE deployments and will be joined by a wave of mobile operators globally over the next 24 months as they look to secure and evolve their communications businesses for the next decade.
Our own research backs this up. According to a recent survey of global mobile operators by Senza Fili Consulting and commissioned by Radisys, most mobile operators are on a good trajectory for deploying RCS and VoLTE services. What’s driving this accelerated adoption? Fifty-four percent of those surveyed said that revenue generation was a primary factor and 57%cited the ability to compete against over-the-top providers. Most operators have already started to deploy such services (18%) or are getting ready to do so over the next year (37%). In addition, RCS is seen primarily as a differentiator and revenue-generating source, rather than a cost saver (26%) or a requirement (34%). Mobile operators view RCS as a key instrument to reverse the downward revenue trends in voice and messaging, which are still their main profit sources. RCS and, in particular VoLTE, are seen as improving and expanding voice services through the support of richer functionality, and as providing better integration with other services within the mobile device, across devices, and across operator-controlled and third-party applications. Survey participants were from advanced markets in APAC (26%), Europe (37%) and the Americas (37%), and mostly from tier-one mobile operators.
The MRF and VoLTE
The MRF provides many important functions. During a basic VoLTE call setup, the MRF might be required to play network tones and announcements or collect digits. The MRF is also essential for value-added services such as audio adverts, ringback tones, conference mixing, message recording and playback, as well as regulatory requirements including legal intercepts, teletype interworking and emergency priority access.
Video media processing is another consideration in VoLTE and RCS services. An MRF provides similar media processing capabilities on video packet streams for RCS video services, video announcements, video ringback tones, interactive voice and video response, video streaming, multimedia conferencing and messaging.
Operators must also consider transcoding when planning their VoLTE service rollouts. Many VoLTE deployments will support HD voice using AMR-WB codecs. If a VoLTE user calls another VoLTE user, the HD audio quality will be spectacular. However, during the multi-year network migration to VoLTE services, it is more likely that early VoLTE subscribers will call someone using a broadband VoIP, 3G, 2G or a PSTN device. The MRF will provide the scalable transcoding between endpoints using different codec standards. For video transcoding, the MRF also includes transrating the frame rate, bandwidth or picture size between (for example) a desktop video using HD video and a mobile device with a small screen.
MRFs also provide a key role in delivering call quality. Since video is by far the largest consumer of over the air bandwidth, the MRF will be called upon to provide on-the-fly bandwidth optimization via transrating and media optimization techniques when delivering content to congested zones.
So, yes, we do believe that 2013 is the Year of VoLTE, but we also believe that MRFs will have an increasingly important role to support a portfolio of services well beyond VoLTE and RCS. Operators must compete against their OTT competitors, and adding IMS architecture with a scalable and flexible MRF solution to their LTE networks is an incremental investment with massive payout potential. Operators will be able to “take back the network,” generating new service revenues beyond flat-rate data plans with VoLTE, RCS and other differentiated and personalized video service offerings.
