A new study poses the theory that the much hyped battle between telcos and over-the-top providers is just that – hype. The reason?: There are more than 80 OTT-style Internet services run by telecom operators, analyst firm Disruptive Analysis points out. And that trend is accelerating, representing a major opportunity for the industry over the next five years.
The report coins the term "Telco-OTT approach" to represent telcos launching their own Internet-type services.
“Telecom operators need to go on the attack," said Dean Bubley, the report’s author and founder of Disruptive Analysis. “They must exploit the scale and ‘viral’ adoption of new services by billions of Internet and smartphone users, using similar tactics to the familiar Web- or VoIP-type providers. It is no longer enough to rely on slow-moving standards or cumbersome collaborations. Telcos need to act alone, or with specialist technology partners."
Disruptive Analysis believes that the Telco-OTT approach enables operators to expand their user-base reach to 1 billion users or more, even in countries in which they have no network footprint; improve existing subscribers’ experience when they are “off-net": for example, helping them access their TV or voice services from PCs or mobile devices connected via other networks; and benefit from both new revenue streams and the higher equity valuations placed on Internet businesses.
Telco-OTT has its own opportunities and challenges, the report says. Few services are easy to monetize, and experimentation – with some failure – will be needed. But customers want open-Internet services – they like the choice and flexibility, and that trend is unstoppable. If telcos are to survive in the long-term, they need to embrace OTT, not fight it, says Disruptive Analysis.
