Industry Players ‘Voice’ Differing Opinions on IPX in HOT TELECOM Report

Voice emerges as priority for customers as IPX providers see wider potential for the model

An upcoming report based on surveys and interviews conducted with over 100 IPX customers and providers, from Research Firm HOT TELECOM, reveals some surprising and intriguing differences in opinion and perception about the IPX service.

Although in its relative infancy, IP Packet Exchange (IPX) is seen as a critical enabler for the future, but the new HOT TELECOM report shows how customers and providers of the service are seeing it differently right now.

The report has revealed that 60% of the customers intending to adopt IPX anticipate that it will primarily be used to facilitate voice traffic (standard Voice over Internet Protocol or HD Voice) over the next 3-4 years, while only 16% indicated a focus on video and other data content. In contrast, only 18% of IPX providers expect voice to be the prominent service, pointing to a significant gap in perception and expectations.

Originally conceived by the GSMA to cater for the growing IP needs of mobile operators; IPX has since come to include the IP-requirements of Fixed Operators, Cable Companies, Internet Service Providers (ISPs), Over-The-Top players (OTTs) and Application Service Providers (ASPs). Indeed, the upcoming HOT TELECOM report reveals that while the majority (66%) of IPX customers are mobile and fixed operators, the significant remainder is now made up of potential competitors to those operators, in the form of ISPs, OTTs and ASPs, and this trend is expected to accelerate over the next 3-4 years.

HOT TELECOM President Isabelle Paradis said: “It is clear from the customer and provider feedback we received that the two groups see the benefits, drivers and inhibitors to the service differently at present. We believe that the gap will close as the services IPX offers continue to evolve, but right now the differences in opinion are driving different priorities and behaviours and are impacting the take up by IPX customers.”

“The difference of perception isn’t universal but it is clear that both groups would benefit from a closer understanding of the capabilities, the promise and the market environment. IPX, particularly as the world moves to all-IP communications for fixed and mobile communications, has much to offer – understanding all of the elements is key to gaining and / or maintaining competitive advantage.”

Isabelle added: “VoIP and Data Roaming are two of the main types of traffic transported over IPX at the moment, but we expect the upcoming proliferation of LTE to be one of the key drivers for IPX adoption in the near future. The support of LTE voice, signalling and roaming over IPX might, in fact, be the killer applications that IPX providers have been waiting for. The adoption of LTE in the mobile sector is likely to drive the market towards IPX and we anticipate that it will eventually become the default for delivery and distribution of voice and ‘data’ between global service providers.”

In its report, HOT TELECOM has compiled data and opinion that quantifies the impact of LTE and the global migration to IPX. More importantly, the report goes a long way towards providing the industry with a clear view on IPX’s overall direction, the requirements of customers and the focus of providers.
The report, ‘IPX – Who, What, Why and When’, will be published on 26th November and will be available at https://www.hottelecom.com/ipx-traffic-analysis.html

HOT TELECOM define IPX as ‘an IP interconnection model supporting voice and data services to offer end-to-end QoS, security, interoperability and SLAs through a dedicated IP connection.’