The document discusses the evolving relationship between telecommunications companies (telcos) and over-the-top (OTT) services, emphasizing that telcos can leverage the internet to extend and innovate their service offerings. It identifies various models for telco-OTT integration, highlights key success factors for these services, and addresses technological advancements such as WebRTC and HTML5 that facilitate this transition. Ultimately, it suggests a need for cultural and organizational changes within telcos to effectively compete in the digital landscape.

1. Telco-OTT : Exploiting the Internet vs. fighting it
Dean Bubley, Disruptive Analysis
OTT Services, Kiev, 22nd March 2013
dean.bubley@disruptive-analysis.com @disruptivedean

2. About Disruptive Analysis
 London-based analyst house & strategic consulting firm
 Cross-silo, contrarian, visionary, independent
 Advisor to telcos, vendors, regulators & investors
 Published report on “Telco-OTT Strategies”, Feb 2012
 New report on WebRTC, Feb 2013
 Workshops on Future of Voice & TelcoOTT
Twitter @disruptivedean Blog: disruptivewireless.blogspot.com
March 2013 Copyright Disruptive Analysis Ltd 2013

3. What do these have in common?
Mobile advertising
SingTel Movies on demand
Telenor Online web portal
Telefonica
MusicKDDI
streaming VoIPTelefonica
& messaging Home automation
Swisscom
All are “OTT” Internet-based services
All are “Telco-OTT” services
March 2013 Copyright Disruptive Analysis Ltd 2013

4. What is “OTT”?
Simply: any capability delivered “over the top” of
the Public Internet
Can be service, application, feature or function,
decoupled from the underlying access network
Often used negatively by telecom “establishment”
Overlooks 130+ examples of “Telco OTT”
March 2013 Copyright Disruptive Analysis Ltd 2013

5. Classic telco & Internet-OTT model
Billing & Telco
ID service
Internet OTT Internet Telco
service broadband
TODAY: clear distinction between Internet-OTT
services, and on-net integrated telco services
Note distinction between
broadband vs. Internet access
March 2013 Copyright Disruptive Analysis Ltd 2013

6. Telcos, like developers, can exploit the Internet
Owned & operated by mobile operators
Usable by anyone, not just subscribers
Via apps & public Internet
Telco-OTT Services
March 2013 Copyright Disruptive Analysis Ltd 2013

7. Telco-OTT on same model as Internet-OTT
Telco OTT
service Internet
TELCO-OTT MODEL #1: Same model as Internet players
– use OTT & apps to reach billions of potential users.
and add extra value to access customers
March 2013 Copyright Disruptive Analysis Ltd 2013

8. OTT-extension model for telco services
Normal “on
net” users
Off-net
Telco extension user
service
Telco Internet
Billing &
ID
TELCO-OTT MODEL #2: Telco “extends” in-house
service to subscribers remotely, via OTT Internet
connection & application
March 2013 Copyright Disruptive Analysis Ltd 2013

9. Telco-OTT trend spans multiple categories
Connec-
Comms Content Cloud
tivity
More than 130 identified Telco-OTT services worldwide
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10. Cloud services for business
March 2013 Copyright Disruptive Analysis Ltd 2013

11. Fixed operators can offer mobile OTT services
(or mobile-to-fixed)
March 2013 Copyright Disruptive Analysis Ltd 2010

12. Key success factors for Telco-OTT services
Organisation & governance Managing cannibalisation Network awareness
Design Software mindset Synergies
March 2013 Copyright Disruptive Analysis Ltd 2013

13. Telcos developing “digital services” arms
March 2013 Copyright Disruptive Analysis Ltd 2013

14. Remember these? Video & IM move to web
Mar 2013 Copyright Disruptive Analysis Ltd 2013

15. Coming next: voice, video, data in browser
(Yes, you can sort-of do it with plug-ins and
Flash already.... But it’s not great)
Mar 2013 Copyright Disruptive Analysis Ltd 2013

16. Voice ≠ Telephony
• Now: 2G & 3G • Future: Smartphones & LTE
Voice
Voice
Telephony
Telephony
Voicemail Gaming, CEBP,
Conferencing surveillance, social
PTT Video voice, TV voice etc
Video, context, sense
March 2013 Copyright Disruptive Analysis Ltd 2013

17. WebRTC & HTML5 are game-changers
Service
e.g. SMS, Telephony
Product
e.g. Lync, Uberconference
Feature
e.g. Business social
Function

18. Device base supporting WebRTC
4000
3500 Tablets
3000 Smartphones
Million
2500 PCs
2000
1500
1000
500
0
Source: Disruptive Analysis WebRTC Strategy Report, Feb 2013
Definitions & methodology in report - See disruptivewireless.blogspot.com for details
Mar 2013 Copyright Disruptive Analysis Ltd 2013

19. Conclusions: Telco-OTT
 Operators can exploit the Internet too
 Extend existing services
 Develop new ones outside access footprint
 Spans voice, content, cloud etc.
 Requires
 Software & web skills
 Innovation & partnering ability
 Requires cultural & organisational change
 Technology making this easier to achieve at low cost
 Mobile apps
 HTML5 & WebRTC are game-changers
 No more false distinction Telco vs. OTT
March 2013 Copyright Disruptive Analysis Ltd 2013

20. www.disruptive-analysis.com
disruptivewireless.blogspot.com
@disruptivedean
information@disruptive-analysis.com
Skype:disruptiveanalysis
March 2013 Copyright Disruptive Analysis Ltd 2013