OTT versus Operator

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Over the top services verssus Operator - Why the Operators have already lost the revenue game already and what can be salvaged?

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OTT versus Operator

  1. 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.

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