Sunday 29 March 2020

Mobile Voice Communications is neither Dying, nor Dead!

If you have been following the mobile industry for a long time, you could be forgiven for thinking that voice communications is dead. This 2013 article for example talks about the impending death of voice and this 2018 article talks about how smartphones have killed the art of conversation. These are just examples and I have read many similar articles in the last 5-10 years.

The thing is that a lot of unnecessary calls became SMS and messages once the price of SMS and data went down. Similarly, voice ceased to be a differentiator in many markets so they started offering unlimited voice and/or SMS locally. This does not necessarily solve my requirements for international calling so I moved on to Viber, WeChat and WhatsApp.

The annual TeleGeography Report and Database update (just released) estimates that international over-the-top (OTT) voice traffic reached 1 trillion minutes in 2019, compared to just 432 billion minutes of international carrier traffic.

Anyway, with the lockdown in many countries because of coronavirus COVID-19, people have re-discovered the use of voice communications again. While I prefer having meetings on the internet, sometimes it's just simpler to call using your phone. A friend discovered that while she has some 40 GB data allowance that was generally more than enough, working from home means that she is having to use her device as a hotspot that is using up all her data. Switching from OTT calling to unlimited voice calling in her package means that she doesn't have to worry about voice calls eating her data package.

She is not alone. Operators all over are reporting the rise in voice communications:

  • 27 Mar 2020 - O2 UK reported, "Since March 16th we have seen approximately 57% more voice traffic at the busiest point of the day. Typically voice traffic increases 5% year on year, and in a week we have experienced an increase of voice traffic comparable to nine years of regular demand." (link)
  • 26 Mar 2020 - Official numbers reported by CTIA from Verizon, AT&T, T-Mobile, Sprint and U.S. Cellular stated that mobile voice traffic was up 24.3% while mobile data traffic was up 9.2% (see photo above - link)
  • 24 Mar 2020 - Telenor Norwar tweeted, "Traffic has increased sharply since the coronary smith was seriously registered in this country. 50% increase in mobile voice, 25% increase in mobile data and 30-40% increase in fixed broadband"
  • 24 Mar 2020 - T-Mobile USA released some interesting stats including gaming, etc. With regards to voice, their announcement said, "People are talking and texting more. Messaging is up dramatically, with a 26% increase in SMS (texting) and a 77% increase in MMS (pictures, multi-party texts, etc.). And, the amount of time people spend on calls has increased 17% nationwide." (link)
  • 20 Mar 2020 - Telia in Denmark reported, "Thursday, March 12, the volume of speech in the network thus increased by 24% compared to the day before. Over the weekend 50% more was spoken - obviously due to a need to gain status on family and friends in the new situation. In the past working week, about 60% more has been spoken on the phone than on a normal week in March." (translated from original)
Is voice important for an operator? Probably not very much in the developed markets where users pay a good amount for data packages. In developing countries, voice is still a good source of revenue. At the TIP summit last year, Malaysian telecom giant Axiata said that ""every gigabyte costs about $1.40 to manufacture...generates only 80 cents in revenue...The 2G voice business currently funds any losses". This is not a long term sustainable model for these operators.


Funnily I just remembered that in a survey of over 1000 people in the USA regarding what they want from 5G, the third most important thing was "clearer voice quality". If you want to understand how voice quality is measured that see this tweet below


We may keep on seeing a boom in voice traffic as more lockdowns occur and they are even stricter. We will have to wait and see of this habit of talking sticks or it's just for this unusual situation.

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