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The Need for VoLTE Interconnection and Roaming
is Pressing
By Ajay Joseph, iBasis CTO
Operators revenue from mobile voice traffic is
declining sharply as subscribers adopt over-the-
top (OTT) applications like Skype and Viber.
VoLTE represents an opportunity for operators to
retain Voice revenue and compete more effectively
by improving quality, incorporating multimedia
features and escaping the costs and limitations of
running circuit-switched voice networks.
The ability to provide consistent VoLTE service
across borders presents operators an opportunity
to gain an early advantage with current and
prospective subscribers. However, multiple
challenges remain, starting with a revenue-
impacting decision operators must make in
choosing the appropriate VoLTE roaming model
for their business.
The Disruption of VoLTE Roaming Models
Operators are uncertain about which roaming
model to embrace.* The two models, both
approved by GSMA, are Local Break-Out
(LBO) and S8 Home Routed (S8HR). Internal
departments are often unaligned as they debate
trade-offs between time-to-market and regional call
quality. The main differences between the models
are the way they route calls. In S8HR, voice is
treated as data and is charged using a data business
model, while LBO maintains the existing voice
business model.
*Ovum Survey, Confusion Reigns over VoLTE, ViLTE, and RCS Roaming, March 2016
In the LBO model, the current international Voice
revenue is preserved as the sending party pays the
receiving-party termination rates (MTRs). In the
case of S8HR, the voice traffic is now part of the
total S8 data traffic; the majority of calls in from the
subscriber in the visited network end up at home.
International carriers do not pay MTRs to the
receiving party in the S8 HR model. This results
in a loss of revenues for the home operator, most
likely in its interconnect department. This can
have significant financial impact for countries and
networks.
The Technical Gaps of VoLTE Roaming Models
iBasis S8HR trials revealed several technical gaps
that are acknowledged by GSMA and 3GPP. The
first challenge, from the home network point of
view, is local regulatory compliance, especially if
the visited network has a different emergency call
support structure.
The second gap relates to call quality. When the
end-user makes a call that needs to be terminated
close to the visited network, the call trombones
back to the home network, which could be very far
away, impacting the call quality, as we observed.
Because some operators will implement S8HR
and others LBO, there will be interoperability
problems between the models. Today, there is no
interoperability between them, which can result in
Wi-Fi Calling And The Next Generation Of Wireless Services // June 2016
lack of scalability and loss of revenue.
During our trials we also observed the increased
complexity of S8HR, which requires number
translation by the home network for special format
local numbers within the visited network, as well
as identification of the visited network needed for
end-user billing.
There are also several challenges to be addressed
by the visited network side, such as lawful intercept
support and overcoming the lack of service
awareness. Because voice is treated as data, the
visited network lacks visibility, which is critical
for service trouble shooting, fraud prevention and
voice KPI measurements.
The IPX Hub Solves Roaming Implementation
Challenges
The iBasis IPX acts as a hub between different
operators helping to solve interoperability issues
and mediating between roaming models. In the case
of a regional call, the IPX can act on behalf of the
home operator and break-out the call close to the
visited network to ensure high quality voice service.
Ovum expects IPX providers to have an increasing
role in helping operators understand the
implications of VoLTE roaming models, helping
them to make better-informed decisions and
address implementation challenges. n