VoLTE/VoWiFi: capacity, reach and capability Deloitte Global predicts about 100 carriers worldwide VoLTE also offers a range of enhancements over will be offering at least one packet-based voice service standard voice. For example it offers the ability to use by the end of 2016, double the amount year-on-year, a data connection while being on a call, superior voice 347 and six times higher than at the beginning of 2015 . call quality, faster call connection, fewer dropped calls We estimate that approximately 300 million customers and the ability to switch from a voice call to a video call. will be using Voice over LTE (VoLTE) and/or Voice However while early adopters in 2016 are likely to be over WiFi (VoWiFi); double the number at the start of most fervent users of this additional functionality, many the year and five times higher than at the beginning users may not notice the variation in voice quality. 348 of 2015 . Carriers are likely to use VoWiFi to extend coverage, For most carriers launching VoLTE or VoWiFi in 2016, particularly indoors, and as a result help improve the primary motivation is likely to be to increase network customer satisfaction with the operator and lessen the capacity and extend the reach of their voice services. likelihood of churn. The majority of mobile calls are While VoLTE or VoWiFi technologies enable a range made indoors (at least twice as many smartphone users 349 of value-added services, such as video calling, we make voice calls indoors than outdoors) , but providing expect the majority of carriers to exploit this additional good internal coverage can be technically complex functionality in later years, with the initial focus being on and expensive, particularly for lower floors and internal coverage and capacity. rooms. One study found that about 40 percent of UK consumers have a mobile blackspot at home and almost VoLTE increases capacity as it allows operators to move a third reported regular issues making or receiving voice calls off 2G and 3G networks and onto the LTE 350 mobile calls from home . (4G) network. The often lower frequency spectrum that is freed up can be reused for data services. One response to blackspots is to deploy additional Additionally the LTE interface is more efficient at cellular towers or small cells to increase network reach, carrying calls relative to traditional calls: it can support but this is complex technically, time-consuming (due for 351 up to twice as many voice users in a given bandwidth example to required planning consents) and costly . (per megahertz). Additional cost savings can be Another approach would be to place femtocells (tiny obtained from retiring legacy infrastructure, and not base stations) in consumers’ homes: each of these having to run two infrastructures in parallel, one for data would cost tens of dollars. and one for voice. Figure 21: VoLTE and VoWiFi operator deployments and users, 2014‑2016 Users (million) Number of deployments 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 2014 2015 2016 Operator deployments Users (million) Source: Deloitte Global, 2015 Technology, Media & Telecommunications Predictions 2016 57

Technology, Media & Telecommunications Predictions - Page 66 Technology, Media & Telecommunications Predictions Page 65 Page 67