Transforma Insights Finds One-Fifth of IoT Connectivity Revenue Will Depend on Support for Voice

Transforma Insights has published a Position Paper on Why VoLTE/VoNR is a critical part of an IoT connectivity provider's portfolio in collaboration with ng-voice. The report from Transforma Insights examines the demand for a voice in IoT applications, the technology mechanisms available to deliver it, and the characteristics of an optimized voice capability for supporting IoT.

By 2033 almost 20 percent of IoT connections (approximately 1.4 billion connections) and 22 percent of connectivity revenue (USD80 billion) will require native voice. The most important set of use cases requiring voice is in the area of connected vehicles, alongside numerous other use cases such as access control, worker safety, vertical transportation, and assisted living. In many cases, the main driver is regulatory compliance, such as in the case of emergency calling (eCall).

There are several options for delivering voice. Historically it was largely done by way of circuit-switched 2G/3G voice. However, with much of the world going through the process of sunsetting 2G and 3G networks, this is no longer a viable approach. That leaves two options.

The first is native IP-based voice in the form of Voice over LTE (VoLTE) in 4G networks or Voice of New Radio (VoNR) in 5G. The second is over-the-top (OTT) voice services of the type delivered by WhatsApp or other similar applications, using the data channel.

According to the report, in the vast majority of use cases, the superior capabilities of VoLTE/VoNR, in terms of security, compliance, reliability, flexibility, and a range of other factors, will make it the most appropriate option, when compared to delivering the same services via OTT voice.

The requirement for delivering voice services causes challenges for many IoT Communications Service Providers (CSPs) which are dependent on inefficient legacy solutions that are not future-proof and/or scalable and – most importantly – cannot be delivered at the type of cost structures IoT customers are expecting.

Commenting on the findings, author Matt Hatton said: “Transforma Insights notes eleven characteristics of an optimized voice capability for IoT, which IoT connectivity providers should demand in any voice solution that they deploy. This ranges from being secure and compliant to being flexible in call routing and able to enrich calls with contextual information.”

One major consideration noted by the report for Communications Service Providers is the scalability of the technology solution. Few connectivity providers will have millions of dollars spare to invest in over-provisioned functionality. Instead, they will want a minimal up-front commitment and then scale by several users with proven technology scalability.

Commenting on the results of the report Quirin Maderspacher, Chief Operating Officer of sponsor ng-voice said: “VoLTE/VoNR plays will be essential for many IoT deployments - 1.3 bn devices will require native voice within the next 10 years. At ng-voice, we help customers add native voice to their platforms - in a software-centric, highly automated, and cost-efficient manner. Our solution is tailored to the needs of IoT."

About the Report

The free Position Paper ‘Why VoLTE/VoNR is a critical part of an IoT connectivity provider's portfolio’ examines the requirement for IoT applications to support voice services and the mechanisms required for IoT connectivity providers to do so.

It starts by examining the key IoT applications that demand voice services, quantifies the opportunity associated with those applications, examines the technologies required to deliver voice services, and identifies 11 key characteristics of an optimized voice capability that should be delivered by an IoT connectivity provider. The report is sponsored by voice solution provider ng-voice.

If you have questions concerning the methodology or the report, don’t hesitate to contact our analysts.