The CCA Voice - Spring/Summer 2014 - (Page 31)

THEME: ON THE EDGE: MEETING CONSUMER DEMAND Band Class 12 - Beyond Broadband By: Kevin Mitchell Vice President, Marketing and Product, Alianza A ccording to Competitive Carriers Association, "carrier members spent approximately $1.8 billion on 700 MHz spectrum [and] $1 billion on 700 MHz A Block spectrum alone." Despite this huge investment that gives carriers access to the airwaves, a mature ecosystem allowing these service providers to deploy mobile LTE solutions has been slow to materialize. While change is coming, particularly with the announcements about 700 MHz interoperability late last year, it will not happen overnight. Beyond the radio access gear, the ecosystem encompasses affordable handsets, interoperability with tier 1 carriers for roaming, and cost-effective and complete IMS-based solutions to power IP-based voice and messaging services. Mobile Technology for Fixed Broadband The lack of a mature ecosystem creates a dilemma for many carriers holding the band class 12 (BC12) spectrum: They must beat the clock and deploy a network per FCC mandates, but with what? Increasingly, carriers facing this challenge have chosen to use their LTE spectrum for fixed 4G broadband solutions. While the mobile ecosystem may be lacking, USB dongles, mobile hotspot devices, and indoor and outdoor modems are available in this band class. A viable solution has developed for rural and underserved America: highspeed broadband that reaches where copper and fiber cables do not. Wireless service providers can now compete head-to-head with traditional fixed line broadband providers and also reach customers long ignored. What's missing, however, is voice. Service providers solely offering broadband are at a disadvantage compared to the morecompelling value in competitors' service bundles and are leaving money on the table. ARPU can be enhanced and loyalty shored up with VoIP services. Adding VoIP to Broadband Undoubtedly, fixed line voice has been in decline, but it is still a massive market in the U.S., totaling nearly $70 billion (residential and enterprise) last year. And cord cutting is slowing; Gartner shows the residential voice market churn at under 0.5% on an annual basis. Further, service bundles have become the dominant subscription type. According to a November 2013 report from Digital TV Research, triple-play subscription revenues will dominate and grow to $144 billion in 2018 globally, making up 70% of total subscription revenues in that year. To capture consumer spending, service providers need to include voice in their offer. The challenge then becomes clear: How do these mobile service providers quickly and profitably add voice to their fixed LTE services? They basically have three choices: 1. Leverage the fixed line division's softswitch (if relevant). 2. Build a new IMS or VoIP network. 3. Outsource and white label from a wholesale provider. There are merits and drawbacks to each approach: Leverage a fixed line network - If there is an affiliated company's network THE to leverage, it may be quick to deploy, already paid for and managed by the experts at that company. However, the underlying costs of an aging fixed line VoIP network may destroy the business case for the new VoIP service over LTE. Plus, feature set, rate center and geographic coverage may be limited compared with the LTE coverage and future expansion plans. Build a network - The slowest and most expensive option does give carriers the greatest degree of control in terms of features and schedules. But it generally means a risky, five-year business case and the need to hire, train and staff a group to build, integrate and run the network. Outsource - The latest-generation outsource solutions leverage softwareas-a-service models and cloud infrastructure, providing great feature flexibility, low total cost of ownership and the promise of rapid time to market. There are concerns about control, so service providers need to critically examine the management and backoffice integration capabilities so an outsourced VoIP solution can truly be scaled and managed as a business. While the mobile ecosystem matures for rural and independent mobile service providers, using LTE to deliver fixed broadband service makes sense: it means more revenue and FCC compliance. But there is an opportunity and compelling reason to go beyond broadband and add VoIP to that offer. The VoIP delivery options are there. The reasons are apparent. The time is now. VOICE * * Spring/Summer 2014 31

Table of Contents for the Digital Edition of The CCA Voice - Spring/Summer 2014

Chairman’s Letter by Jonathan Foxman
A Message from the President and CEO by Steven K. Berry
CCA’s 2013 Annual Achievement Award Winners
Staying Ahead of “The Next Big Thing”
Near Tragedy in Nevada Demonstrates Need for Rural Investment
Competition – The Foundation for a Healthy Industry
Putting the “Incentive” in Incentive Auction
Beat ’Em or Join ’Em: Data Roaming in a 4G LTE World
2014: The Year of Small Cell Deployment
Band Class 12 – Beyond Broadband
Chat Mobility Utilizes Multi-Faceted Plan to Attract & Retain Customers
Blurred Lines: Reinventing in the Rural Market
Regional Carrier Bridges Digital Divide with Massive Network Upgrade
Wireless Challenges and Solutions for Competitive Carriers
Expanding America’s Wireless Networks: It Takes a Village
Lead with Location
Giving Your Customer Their Preferred Choices in Billing: Paper, Electronic, and Mobile
Monetizing Data Demand with Personalized Services
Making Sure Long-Distance Calls Reach Rural Subscribers
Mobility Growth with Emerging Devices
Mobile Broadband and the Rise of Mobile Security Challenges
On the Verge: Fulfilling 4G-LTE Consumer Demand in America
Transform Your Business by Making It Simpler
Lessons Learned on the Road to LTE
Let’s Get Personal
Even If the Voice Packets Make It, Does the Lack of Quality Ruin It?
Our Connected World: The Necessity of NFV for Telcos
Ten Hot Consumer Trends in 2014 and Beyond
Gain Your Edge: Effective Edge Out Strategies with 4G LTE
Reaching Consumer Demand Through Marketing in the Rural Driven Markets
Tips for Improving the Customer Experience
Creating a Super High-Capacity Network in Rural America
Your Competitors Are Coming for Your Customers
Index of Advertisers
Congressional Spotlight: Representative Robert “Bob” Latta

The CCA Voice - Spring/Summer 2014