3. Double Sided OTT Business Model
Sponsored : Revenue Streams
Advertising platform
twitter
BBM
whatsup
Advertising
Revenues
skype
Google
twist
Communities
Content & context
facebook
Consumer
Freemium services
Pay per use premium services
Collaboration and
content services
Business
1.
2.
3.
Free content
Free messaging service
Free Voice service
Accept
exposure to
adverts
4. The no-revenue business model?
Viber statements:
We will NOT charge for the app
We will NOT charge for Viber-to-Viber calls
We will NOT charge for Viber-to-Viber texts
We will NOT advertise on the Viber app
“We will NOT sell, rent or in any other way abuse your
data”
3
5. Freemium Services
Sponsored free service…
ads or induced to services
so that customers can buy
and follow through with
premium
Underlying Infrastructure
The underlying
infrastructure will never be
free.
Someone is paying for your
free wifi… either your
neighbour, restaurant or
advertisers
APs
6. But social network platforms are not built for philanthropy
160
Investment per customer
Sponsored Revenue Streams
140
Freemium services customers
Paid for Premium Services Subscriptions
120
100
80
Freemium service Subscriber base
Size of community
60
Average investment Per
customer
40
20
0
A
B
C
D
E
F
G
H
I
J
… the Freemium service is paid for
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
7. Challenges MNOs are facing: Scissor Shaped and ABC
Voice
Broadband Connection
Ultra Broadband and User Centric
B
ARPU
Can it be enhanced?
Golden Year
A
Bandwidth
C
SMS
Value/Bit
Voice
Leased Line
Can cost remain same
while Bandwidth increase 10 times?
Cost
HSI
Mobile BB
Can they be controlled
within the target?
IPTV
Increase User Base
Lower the cost
Killer Application Era
Model courtesy of Huawei
Can it be achieved beyond
demand?
HDTV
Long Tail Application Era
9. The current model where operators continue to invest in
the underlying network and OTT players take the UPSIDE
is not sustainable. A new model that is balanced must
evolve. Operators have to develop new ideas around this
issue.
10. VS
MNO’s facilitate the underlying
platforms thus creating a possibility to
VS
facilitate real interoperability.
Billing relationships with clients create
biggest potential upside for both OTT &
VS
1.
2.
3.
MNO
Amazon does not know how to talk to ebay
Facebook does not know how to talk to Linkedin
Google search engine does not know how to talk to Bing search engine
Build standard APIs and expose them to OTT to connect at easy and therefore create a
partnering context
11. The next evolution of OTT service will be mission critical yet underexplored
applications such as for mhealth
mHealth evolution
Activity & health tracking &
monitoring
Wearable smartphones
Html 5 will enable simple service integration for APPS … the key is for Telcos to shape
this future so that the ecosystem is rebalanced.
Html5 , Access networks, Standardised open APIs, Data storage capability , Trusted brands and Billing
relationships , Customer service context give MNO in unassailable position to participate in the ecosystem
12. What should MNO’s do?
1. Transform : transform traditional ( voice centric) business model into data centric business model, then
the issue of OTT becomes that of gain sharing than revenue cannibalisation.
2. Collaborate : collaborate with OTTPs and provide billing context for service bundles so that customers
are always on regardless of the underlying service plan from MNO.
3. Innovate : create end to service by developing open APIs for OTT to engage with ease and cross service
integration leveraging developments such as html5 etc.
4. Lead and Shape health and education ecosystem
14. Collaborate with OTT players
1.
MNO have data centre and cloud assets
2.
MNO have channel capability which OTT tend to struggle with at enterprise level
3.
Value bundling of OTT services and increase ARPU as customers move to higher price plans
4.
Billing relationships with clients
5.
Build end to end rich communications service platform as industry standard (RCS)
6.
Leverage OTT systems capability to build commercial offers
15. MNOs are still the go to service point for OTT services…
When a customer has a problem with BBM or facebook not
working, they call their MNO first as some of the OTTPs
have no direct service support context, which tends to be
crucial requirement when the service fails.
…despite not benefiting from the OTTP upside
16. What is RCS-e?
Rich communication service (RCS) ete
An industry GSMA standard
Chat & Group chat
Video sharing
The simplicity of SMS with
the richness of IM.
Add video to a running voice
call contrary to 3G video
calls
Capability discovery
An end-to-end seamless service :
File sharing
Share multimedia content
during a chat or voice call
session
17. Operator strategies to manage OTTP challenge
Mobile Voice
1. Hold ground and
transform business
model
2. Migrate to integrated
price plans
3. Create a differentiated
voice quality
proposition
Messaging
1. Drive enterprise
messaging strategy
especially for Sme
2. Collaborate with OTT
3. Develop APIs and
expose them to OTT to
create a revenue share
relationship
4. Evolve sms / mms into a
value added platform for
enterprise b2c.
5. Accelerate m2m
Media
1. Integrated offers quad
play with focus on
quality of service and
experience.
Cloud
1. Leverage customer billing
relationship, access
network and data centre
assets to carve a distinct
position in the market.
2. Leverage IaaS, PaaS &
SaaS capability to lead in
enterprise
3. Value Bundling: Bundling
third party cloud services
and get customers into a
higher price plan.
