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New Transforma Insights study finds that over one-fifth of IoT connectivity revenue will depend on support for voice services

SEP 11, 2024
 
region: ALL vertical: ALL HyperconnectivityInternet of Things

New report from the world’s leading IoT analyst firm finds that many key IoT applications need to support voice services and the vast majority will be delivered using native IP-based VoLTE/VoNR. IoT connectivity providers need to find a scalable solution for supporting voice.

This week Transforma Insights has published a Position Paper ‘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 voice in IoT applications, the technology mechanisms available to deliver it, and the characteristics of an optimised voice capability for supporting IoT.

By 2033 almost 20% of IoT connections (approximately 1.4 billion connections) and 22% of connectivity revenue (USD80 billion) will have a requirement for native voice. The most important set of use cases requiring voice are 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.

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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 optimised 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.

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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 number of 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 to 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 optimised voice capability that should be delivered by an IoT connectivity provider. The report is sponsored by voice solution provider ng-voice.

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If you have questions concerning the methodology or the report, don’t hesitate to contact our analysts via enquiries@transformainsights.com.

Join us on 5th November to learn more

Virtual Briefing – Why an IoT connectivity portfolio needs a scalable VoLTE/VoNR capability

Transforma Insights and ng-voice explain why IoT applications increasingly need to support voice, which technologies are available and appropriate to deliver voice services, and the best way for connectivity providers to implement a scalable capability.

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About Transforma Insights

Transforma Insights is a leading research firm focused on the world of Digital Transformation (DX). Led by seasoned technology industry analysts we provide advice, recommendations and decision support tools for organisations seeking to understand how new technologies will change the markets in which they operate. For more information about Transforma Insights, please see our website transformainsights.com.

About ng-voice

Founded by a group of software, open-source and Telco pioneers, ng-voice provides today the Hyperscale IMS: infrastructure-agnostic, cost-efficient, automated. Based in Germany but with a global footprint, ng-voice has developed a solution that is revolutionising voice in 4G/5G networks: the Hyperscale IMS (IP Multimedia Subsystem) - infrastructure-agnostic, cost-efficient and automated. ng-voice.com