#VoWiFi

The Rush to VoWiFi and VoLTE:

Opportunities and Challenges
An IHS Infonetics Webinar

Todays Speakers

#VoWiFi

The Rush to VoWiFi and VoLTE: Opportunities and Challenges

Diane Myers

Ken Kolderup

Steve Shaw

Allen Tatara

Senior Research Director

VoIP, UC and IMS

Chief Marketing Officer

Vice President, Marketing

Manager, Webinar Events

(Moderator)

IHS

Taqua

Accuris Networks

IHS

2016 IHS

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Market Trends
Problems and Challenges
Why VoWiFi: Case Studies
Key Considerations
Sponsor Approaches
Conclusions
Audience Q&A
2016 IHS

#VoWiFi

Subscriber Growth Is Hitting Penetration

VoLTE by itself is purely a

technology migration

The end service voice is

the same

100%

80%
6
60%
4
40%
2
20%

0%
CY13

CY14

CY15

CY16

CY17

Mobile subscribers

2016 IHS

VoLTE Subscribers

VoLTE is less than 2% of

the market today

Mobile Subscribers (Billions)

Mobile subscriber growth

is flat-lining

Source: IHS Infonetics Total Fixed and Mobile Subscribers Pivot Market Size and Forecasts; April 2015
IHS Infonetics VoLTE and OTT Mobile VoIP Services and Subscribers Market Size and Forecasts; June 2015

CY18

CY19

% VoLTE

VoWiFi and VoLTE Deployments

2015 VoWiFi (19)

NA
4

APAC
5

NA
6

2015 VoLTE (41)

EMEA
19

EMEA
8

APAC
18

VoLTE

VoWiFi

VoLTE

VoLTE

VoWiFi

VoWiFi

2016 IHS

Source: GSMA, GSA

Why Are Operators Deploying?

Voice over LTE (VoLTE)

Voice over Wi-Fi (VoWiFi)

Addresses the spectrum challenge

Addresses the indoor coverage challenge

Improved Indoor Service Coverage

2G/3G

LTE

Spectrum allocation
without VoLTE
With VoLTE

By transitioning voice services from 2G/3G to

LTE, operators can reallocate spectrum to
meet rising mobile data demands.

2016 IHS

1020% of subscribers have poor voice

coverage at home. However, many
subscribers now use smartphones and
already connect to a home Wi-Fi network.
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How Is VoLTE Service Being Positioned?

Advanced Voice
HD Voice, Faster Call Setup, Simultaneous Voice and 4G Data, Video Calling

2016 IHS

How Is VoLTE Service Being Priced?

Same as 2G/3G voice

No additional subscription fee

No additional usage fee

But, a number of operators are only making VoLTE

available on postpaid plans with high-end smartphones

2016 IHS

VoWiFi Deployment Details

2013

2015

2014

HK
Czech

UK

2016 IHS

How Is VoWiFi Service Being Positioned?

Voice coverage where you need it.

Make and receive calls

even with no phone signal

WiFi Talk helps customers

stay in touch at home and in
the office

Wi-Fi Calling improves voice

service in locations with limited
or no mobile network coverage

With Wi-Fi Calling,

customers can now benefit
from better indoor reception

2016 IHS

10

How Is VoWiFi Service Being Priced?

Same as 2G/3G/VoLTE voice

No additional subscription fee

No additional usage fee

But, a number of operators are only making VoWiFi available

on postpaid plans only
Also, some operators are restricting usage to just domestic
Wi-Fi networks
2016 IHS

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Market Trends
Problems and Challenges
Why VoWiFi: Case Studies
Key Considerations
Sponsor Approaches
Conclusions
Audience Q&A
2016 IHS

#VoWiFi

Challenge #1: Deployment Complexity

Timelines can be a 2+ year project

This is the most complex thing

Ive ever worked on in 20 years.
Tom Bennet, Dir. of Network Services, EE

VoLTE network deployment is one of the most difficult projects

ever. The complexity and workload is unparalleled in history.
Liu Aili, China Mobile Group Vice President

2016 IHS

13

Why Is Deployment So Difficult?

Traditional deployment architecture requires the new IMS core to
preside over the existing 2G/3G core
PSTN
IXC

PSTN

IXC

SS7

SS7

New IMS Core

Existing
2G/3G Core

Existing
Existing
Services
Core
2G/3G Core

Forces a complete
re-architect of the network
New external connectivity
New subscriber management
IN service redevelopment
New service charging systems
An 1824+ month project that
impacts all functions
within the company

CS Voice
2016 IHS

CS Voice

VoLTE VoWiFi
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Challenge #2: VoWiFi Handset Support

VoWiFi support on iPhone is straightforward, but how to enable
VoWiFi service on Android handsets?

Number of handset OEMs

One

Many

Number of handset models

~Six

Thousands

Easy method to update handsets in

field without native VoWiFi support?

Yes

No

2016 IHS

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Market Trends
Problems and Challenges
Why VoWiFi: Case Studies
Key Considerations
Sponsor Approaches
Conclusions
Audience Q&A
2016 IHS

#VoWiFi

Mobifone (Vietnam)
A top 3 mobile operator with over
25M subscribers
WiTalk service overview

Launched in December 2015

Available to prepaid and postpaid

subscribers for no additional fee

Introductory offer includes lower cost calling

over Wi-Fi

Subscribers can use Wi-Fi globally

Initially supported on all Android handsets

by leveraging downloadable Native Wi-Fi
Calling App from Taqua
2016 IHS

Primary driver Indoor coverage

Increase service usage
Reduce churn
Improve customer satisfaction
http://mobifone.vn/wps/portal/public/dich-vu/tien-ich/tien-ich-list/witalk

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EE (UK)
A top 3 mobile operator with over 30
million subscribers
Wi-Fi Calling service overview

Launched in 2015

Available to postpaid subscribers for no

additional fee

No billing change for calls made over Wi-Fi

(to domestic or international destinations)

Not allowed over Wi-Fi outside of the UK

(blocked on IP address)

Supported on iPhones and growing number of

operator sold Android and Microsoft
smartphones
2016 IHS

Primary driver Indoor coverage

Reduce churn
Improve customer satisfaction
http://ee.co.uk/ee-and-me/network/why-ee/wifi-calling

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Bell Canada (Canada)

A top 3 mobile operator with over 8 million

subscribers

Wi-Fi Calling service overview

Deployed in 2H2015

Available to postpaid subscribers with unlimited

national calling plans

No billing change for calls made over Wi-Fi

(to domestic or international destinations)

Not allowed over Wi-Fi outside of Canada

(blocked on IP address)

Primary driver Indoor coverage

Reduce churn
Improve customer satisfaction

Supported on iPhone, Android phones coming

http://www.bell.ca/Mobility/Promotions/Wi-Fi-Calling

2016 IHS

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T-Mobile (USA)
A top 3 mobile operator with over 60
million subscribers
Wi-Fi Calling service overview

Aggressive supporter of Wi-Fi Calling

since 2007

Available to all prepaid and postpaid

subscribers for no additional fee

No billing change for calls made over Wi-Fi

(to domestic or international destinations)

Allowed over Wi-Fi globally

Supported on iPhones and all operator sold

Android and Microsoft smartphones
2016 IHS

Primary driver Indoor coverage

Reduce churn
Improve customer satisfaction
http://www.t-mobile.com/offer/wifi-calling-wifi-extenders.html

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VoWiFi Has A Proven Business Case

The Customer Lifetime Value (CLV) of subscribers with poor
home coverage is significantly lower than average

Postpaid subscribers with poor home

coverage either cancel their service right
away or churn early in their lifecycle

Prepaid subscribers with poor home

coverage use significantly lower MOU per
month, and therefore top up less frequently

By solving the indoor coverage challenge, VoWiFi dramatically

increases the CLV of 1020%+ of your subscribers
2016 IHS

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Market Trends
Problems and Challenges
Why VoWiFi: Case Studies
Key Considerations
Sponsor Approaches
Conclusions
Audience Q&A
2016 IHS

#VoWiFi

#1: Software, Software, Software

The era of hardware-based solutions is over

Hardware Based

Software Based

Lower CapEx and OpEx

Faster time to deployment, scaling, upgrading, etc.
2016 IHS

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#2: Deployment Model

Hosted/cloud services are now a real option
Traditional In-Network
Deployment

Hosted/Cloud
Deployment

Operator Core

New IMS
Core

Time to market

Operator
Core

Organizational skills
OpEx vs. CapEx
2016 IHS

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#3: Starting Point for More IP Voice Services

VoWiFi is logical first step in overall transition to IP Voice
Launch VoWiFi
IXC

PSTN

IPX
Voice

Address indoor coverage challenge

Straight forward business case
Exercises new IMS core

Then look to

Mobile Core

Launch VoLTE
When macro network ready
Address spectrum challenges

Upgrade to IPX Voice

To improve voice quality
IP PBX

Lower interconnect, termination and

roaming costs

Launch Business Voice Services

CS Voice

VoWiFi

VoLTE

Hosted PBX/UC

SIP Trunking

SIP trunking, hosted PBX/UC,

In markets where appropriate

2016 IHS

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#4: Starting Point for More Wi-Fi Services

Use VoWiFi to create value with Carrier Wi-Fi Service
Launch VoWiFi
Core voice & SMS services over Wi-Fi

VoWiFi
Inbound
Wi-Fi Roaming

Wi-Fi Service/
Subscriber
Management

Then look extend with

Network Offload with Carrier Wi-Fi

Intl
Wi-Fi

Use domestic Wi-Fi to augment RAN capacity

Create Wi-Fi Fabric with 3rd parties

Outbound
Wi-Fi Roaming
Carrier
Wi-Fi

3rd Party
Wi-Fi

Easily include 3rd party Wi-Fi for expanded

coverage
Seamless, SIM-based authentication

Add Wi-Fi to Intl Data Roaming

Enable subs to use Wi-Fi when traveling

VoWiFi

Offload +
VoWiFi
2016 IHS

Monetize Wi-Fi capacity by opening up

domestic Wi-Fi networks
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1
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Market Trends
Problems and Challenges
Why VoWiFi: Case Studies
Key Considerations
Sponsor Approaches
Conclusions
Audience Q&A
2016 IHS

#VoWiFi

Virtual Mobile Core (VMC)

Existing
2G/3G Core

Virtual Mobile
Core

A virtualized IMS core that combines the

standard functions required for VoWiFi, VoLTE
and more into a single software solution
Telephony Application Server (TAS)
IP Short Message Gateway (IP-SM-GW)
IP Multimedia Service Switching Function (IM-SSF)
Service Centralization and Continuity AS (SCC-AS)

CS Voice

VoLTE

VoWiFi

Call Session Control Function (CSCF)

Media Resource Function (MRF)

2016 IHS

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Supports Fast Track Deployment Option

VMC can optionally allow existing 2G/3G
core to preside over the new IMS core
PSTN
IXC

PSTN

IXC

SS7

SS7

Existing 2G/3G Core

Fast Track option avoids complete

re-architecture of network, by
leveraging
Existing external connectivity
Existing subscriber management

Existing
2G/3G Core

VMC

Existing IN services
Existing charging systems
A 3 month project that impacts few
functions within the company

CS Voice
2016 IHS

CS Voice

VoLTE

VoWiFi

29

VoWiFi App
A downloadable App that enables a native Wi-Fi
Calling experience on Android handsets that do
not have native VoWiFi support from the OEM
Standard Android Application

Wi-Fi Calling
Significantly increases the
availability of VoWiFi
service to subscribers

2016 IHS

Downloadable through Google Play Store

Pre-loadable onto handsets prior to launch

Brandable by operator

Native Wi-Fi Calling experience

Operates like native VoWiFi implementations

Service indication on notification bar

Subscribers use native Dialer, Contacts

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The Accuris Enhanced Data Gateway (eDGW)

Combined ePDG & 3GPP AAA function into

single solution

Software-based security gateway (ePDG)

SWx

HSS

Accuris
eDGW

Conforms to TS 23.402
IPSec tunnel setup based on
SIM authentication

Integrated 3GPP AAA for

granular subscriber control

Policy-based subscriber access on

location, device, service plan, Wi-Fi
provider, etc.

2016 IHS

HLR

3GPP
eAAA

S6b

SWm
SWu

D/Gr

OPERATOR
CORE

IPSec

ePDG

S2b

GTPv2

P-GW
(EPC)

SGi

IMS
Core

Quickly add VoWiFi to any IMS Core

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The Accuris Advantage

Software-based Scalability
Realize the agility associated with software, and support the
transition to a Software-Defined Infrastructure (SDI).

BYOHw
Built on Commercial Off the Shelf (COTS) Intel-based hardware
means you can buy from Accuris, or manufacturer direct.

Deployment Flexibility
Architected for cloud deployments, available as traditional network
element (on COTS hardware) or SaaS.

Granular Service/Subscriber Control

Integrated AAA gives providers full control over Wi-Fi Calling service
based on location, device, Wi-Fi network, service plan, billing and more.

2016 IHS

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1
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5
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Market Trends
Problems and Challenges
Why VoWiFi: Case Studies
Key Considerations
Sponsor Approaches
Conclusions
Audience Q&A
2016 IHS

#VoWiFi

VoLTE & VoWiFi deployment is underway

Deployments remain complex but there

are deployment options

Need to leverage assets for new services

2016 IHS

34

1
2
3
4
5
6
7

Market Trends
Problems and Challenges
Why VoWiFi: Case Studies
Key Considerations
Sponsor Approaches
Conclusions
Audience Q&A
2016 IHS

#VoWiFi

Audience Q&A

#VoWiFi

The Rush to VoWiFi and VoLTE: Opportunities and Challenges

Diane Myers

Ken Kolderup

Steve Shaw

Allen Tatara

Senior Research Director

VoIP, UC and IMS

Chief Marketing Officer

Vice President, Marketing

Manager, Webinar Events

(Moderator)

Diane.Myers@ihs.com

Ken.Kolderup@taqua.com

Steve.Shaw@accuris-networks.com Allen.Tatara@ihs.com

IHS

Taqua

Accuris Networks

2016 IHS

IHS

36

#VoWiFi

Thank You
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