SCOTTSDALE, Ariz. – IP Multimedia Sub-System (IMS)-based communication applications, enhanced by presence and other personalized functionality, will add value to existing services, but may not generate a windfall of new consumer spending, says a new report from research firm In-Stat.
The main revenue benefits that IMS provides lie in the integration of wireless and wireline services, and the creation of integrated multimedia service bundles for premium content and entertainment services, the high-tech market research firm says.
"Historically, consumer spending for communication services tracks consistently with growth of overall consumer spending," says Keith Nissen, In-Stat analyst, in a release. "Depending on new consumer spending for revenue growth is a risky proposition. The objective of carrier IMS revenue strategies should be to capture the maximum percentage of household monthly spending on communication and related services."
Recent research by In-Stat found the following:
* Legacy Public Switched Telephone Network (PSTN) revenue streams must be retained for as long as possible. Despite a declining revenue trend, pricing and gross margins should not be lowered simply to retain non-broadband single-service customers.
* Broadband market share will dictate future subscriber ARPU and carrier revenue potential.
* Rising content costs and communication service rate increases will limit new consumer spending for IMS-enabled communication applications.
However, Ericsson announced this week that it is banking on IMS. The company has now launched the IMS eco-system as part of Ericsson Mobility World’s developers program. The initiative is aimed to accelerate the creation of new applications and services, drive user demand for IMS enabled networks and create further revenue opportunities for operators.
Application developers will be able to take advantage of Ericsson’s IMS based solutions, as well as the Ericsson Service Development Studio (SDS), the development and end-to-end testing tool provided by Ericsson, which is based on Eclipse technology.
"The eco-system for IMS applications will give operators access to a portfolio of IMS based applications and gives application developers a chance to work closely with Ericsson and gain exposure to Ericsson customers worldwide," said Kurt Sillén, vice-president, Ericsson Mobility World.
The Ericsson Mobility World Developer Program is the Ericsson program helping application developers to successfully plan, develop, verify and get applications to the market for operators and end-users. The company is a leader in the IMS area with 19 commercial IMS contracts and a further 40 trials either completed or in progress
