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OTT versus Operator
1. OTT versus Operator: Collaborate or Compete or …?
Problem statement: Cannibalization of Operator Voice & messaging services.
How can this be overcome?
Short Term view
Actions
Medium term View
Long Term View
Operator Price Discrimination by
application generate revenues from
OTT
Revenue share between Bandwidth
providers and OTT
Telcos need to move into media
context, broadcasting, IPTV, IT
services, RCS and Proprietary OTT
services
(Throttling, blocking of OTT)
Implications
This invites customer dis-sat and
criticism
Also with WiFi profusion – this tactic
may not be entirely successful
To offset Loss of revenue from 1
SMS, ~2000 160-word tweets need
to be sent out.
Thus OTT leads to revenue loss even
with rev-share agreements
SMS and voice have seen limited
innovation ever since inception. OTT
is also about being “cool”.
What set of superior services would
allow Telco’s to differentiate versus
OTT better?
Regardless of how Telco’s would want to react to OTT threat – the revenue leakage would
continue to be massive.
Telcos would need to evolve to eco-systems with their suite of Rich Solutions ( Experience,
Video, Streaming, Messaging, Content) to counter the OTT losses.