Innovation in the delivery of VoIP has the potential to challenge operator business models, according to a new report from consultancy firm Arthur D. Little. 

The report, titled Disruptive threat or Innovative Opportunity?, outlines key trends influencing this development and the response options available.

“Key technological, business and regulatory trends are influencing the development of the mobile voice OTT industry,” says Dr. Björn Thunström, principal of Arthur D. Littles Telecoms, Information, Media & Electronics (TIME) Practice. “The operators response strategies will dictate whether this proves to be a disruptive threat or an innovative opportunity.”

The report is based on interviews with more than 50 interviews with telecom and OTT CxOs globally, and assesses OTT growth potential according to three levels of impact. In the negligible scenario, operators take steps to block or hinder VoIP growth, and mobile VoIP would grow from $1bn in 2011 to $14bn in 2016, and account for 2 per cent of global mobile voice revenues. The moderate impact scenario would see the industry grow to nearly $60bn, as OTT providers partner with challenger operators and regulators prevent discrimination of the mVoIP industry. 

A major impact scenario sees the industry grow to more than $100bn, fueled by the continued growth of smart device use and flat fee data bundles, combined with sustainable partnerships with operators globally.

“Telcos must implement strategies determined by their market position, as well as the business and legal context of individual markets,” says Dr Thunström.

The report can be downloaded from the Arthur D. Little website.