Voice over LTE or VoLTE may be launched within 2014. In particular, AT&T and Verizon are keen to move voice traffic currently occupying 2G/3G spectrum. As a reminder, before VoLTE is launched, all voice calls currently drop down to either 2G or 3G network, using a technology called Circuit Switched Fall Back (CSFB). Thus, globally, LTE is purely being used for data traffic at present.
The intention of AT&T and other Telcos is to shift the voice traffic to VoLTE, in order to then free up their 2G/3G spectrum resources. These resources would then be reframed for LTE use, in order to meet strong data growth. Other telcos globally may then follow – particularly those with spectrum constraints.
However, the pace of transition to VoLTE has been delayed up until now largely due to concerns over customer experience—in particular, on whether VoLTE calls can be handed off to 2G/3G smoothly when going out of LTE range. Of the 222 operators that have launched LTE around the world, only MetroPCS and two operators in Korea have actually launched any VoLTE services. This may change during this year (2014) as the LTE standard has evolved to include technology (SR-VCC) that allows a smooth handoff from VoLE to 2G/3G voice (at least in theory).
How VoLTE can help Stop Cannibalization of Renews for Telcos ?
From a technology perspective, VoLTE is effectively a Voice Over IP or VoIP technology, which puts it in the same bracket as OTT voice [Skype, Viber, WhatsApp impending launch, etc] . This also therefore creates the risk of cannibalisation of traditional voice traffic onto what is effectively data. However, there is one critical difference, which is that VoLTE services are controlled within the telco operators’ networks and are identifiable by the operator as voice calls. This in turn means the operator can continue to bill the service as voice, which materially lowers the cannibalisation risk.