Approximately three quarters of mobile operators surveyed are currently deploying, trialling or planning to deploy LTE
GAITHERSBURG, MD - June 27, 2011 - More than 42 percent of global Mobile Network Operators (MNOs) are currently deploying or trialling LTE, and an additional 34.2 percent plan LTE network rollouts in the future, according to a study released today by BroadSoft, Inc. (NASDAQ:BSFT, news, filings). The survey, conducted by analyst firm MobileSQUARED on behalf of BroadSoft, the leading global provider of software that enables mobile, fixed-line and cable service providers to deliver real-time communications over their IP networks, identified strategies and perspectives of leading mobile operators worldwide about LTE, Unified Communications (UC) and Rich Communications Suite (RCS) services in an all IP environment.
LTE Technology Strategies
Approximately three quarters of all operators surveyed said they plan to launch an LTE network in the future, with 42% already deploying or trialling LTE. One requirement for monetizing these high speed networks is the availability of LTE handsets. Over one-third of those surveyed believe LTE handsets will be readily available in 2012, and another third (for a total of 64%) believe LTE handsets will be available by 2013.
The GSM Association closely watches the speed of LTE networks deployments and recently recognized LTE as the fastest developing mobile technology ever, and with it, the industry is witnessing the emergence of a strong UC offering. These services are expected to enable the majority of mobile operators to leverage their significant assets to overcome the threat posed by Over-the-Top (OTT) services and target both the consumer and enterprise market with innovative, revenue generating services beyond traditional voice and messaging.
"We believe the results of the BroadSoft survey reinforce our view that LTE offers significant opportunities for mobile network operators to leverage an all-IP environment to deliver innovative communications services that enhance, rather than replace, voice," said Scott Hoffpauir, chief technology officer, BroadSoft. "With the proliferation of mobile tablets and smartphones, we believe VoLTE can be a game changer for mobile carriers, as they are ideally positioned to provide a single communications identity - a phone number - through which their customers can always be reached, regardless of the communication app, voice, video, texting, IM, or device they choose."
Required UC and RCS Services
When operators were asked to choose the three most important elements of UC and RCS, 'data sharing' topped the list, chosen by almost 60% of respondents, followed by 'video and conferencing' and standard 'telephony'.
Hoffpauir added, "We believe the introduction of these innovative communication services will enable MNOs to radically change the communication experience. We expect to see voice become high-definition (HD) voice, video calling become a standard feature and text messaging evolve to content messaging, with the sharing of pictures and videos, and all in real-time."
The survey shows mobile operators believe this evolution is taking place and that LTE will enable them to capitalize on the desire by individuals for a wider variety of communication options.
The vast majority of operators (92%) surveyed stated that they are either currently or are planning to offer UC services for enterprise customers and 83% are currently or plan to offer RCS services for consumers.
With an LTE network, MNOs can offer a superior user experience, by providing higher quality of service (QoS) for voice and video calling, than the 'best effort' offered by OTT providers. VoLTE specifications ensure that voice quality and service requirements are as good as current CS-domain voice, or better.
Individual survey results are anonymous, but the participating operators represent most of the major operating groups - including 3 Group, Etisalat, Maxis Communications, MTS, NTT DoCoMo, Orange/France Telecom, Orascom, QTel, Reliance Communications, Singapore Telecom, T-Mobile/Deutsche Telekom, Telefonica O2, Telenor, TeliaSonera, Telstra, Tigo, Turkcell, Vodafone, Wataniya Telecom and Zain.
BroadSoft provides software that enables fixed-line, mobile and cable service providers to deliver voice and multimedia services over their IP-based networks. The Company's software, BroadWorks®, enables service providers to provide enterprises and consumers with a range of cloud-based, or hosted, IP multimedia communications, such as hosted IP private branch exchanges, video calling, unified communications, collaboration and converged mobile and fixed-line services.
BroadSoft and BroadWorks are registered trademarks of BroadSoft, Inc. All other names are trademarks of their respective owners.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "will," "believe," "expect," and other similar terms and phrases and include statements regarding the timing of the deployment or adoption of LTE networks, the benefits and attributes of, and economic opportunities provided by, LTE networks, the expected timing and availability of LTE handsets, whether LTE will enable MNOs to overcome the threat posed by OTT services and the value to customers of services enabled by LTE networks. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to whether the deployment of LTE networks will result in increased revenues for BroadSoft or greater customer acceptance of BroadSoft's products and services, as well as those factors contained in the "Risk Factors" section of BroadSoft's Form 10-Q for the quarter ended March 31, 2011, filed with the Securities and Exchange Commission on May 9, 2011, and in BroadSoft's other filings with the SEC. All information in this press release is as of June 27, 2011. Except as required by law, BroadSoft undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in its expectations.
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