The Impact of OTT Providers on the Telecommunications Sector
Over-the-top (OTT) services refer to communication, hosted, and entertainment services that are delivered over Internet Protocol (IP)-based broadband networks.
OTT services include voice, text, content, and applications. The key differentiating factor is that the OTT service provider need not be the owner of the network over which the service is offered and these services are not restricted to a single operator.
The OTT market is still relatively small; however, it is expected that the market will grow to challenge the traditional telecommunications participants for both subscribers and revenues. This is particularly relevant in the light of increasing broadband access.
OTT providers typically emphasize a core service and then gradually expand their presence across the telecommunications value chain.
Most OTT services are targeted at consumers and a few have been able to break into the enterprise market. However, the enterprise market is likely to be the next target market of OTT providers.
The major OTT providers are trying to position themselves as the primary portal through which people access the Internet. Operators should leverage their current position and access to the customer.
Monetization will remain one of the key challenges for OTT service providers. Adopting the right revenue model will be key for the success and sustainability of the provider.
About this report
The growing OTT market represents both a threat and an opportunity for telecommunications operators globally. The key drivers in the OTT market includes, the growing availability of high-speed connections, the increasing penetration of smart devices, and the consumer drive for the adoption of technology and services. The major OTT providers are trying to position themselves as the primary portal through which people access the Internet. OTT providers are starting to move beyond building subscriber bases to exploring the delivery of more comprehensive service packages.The aim of the study is to provide insight to participants in the telecommunications sector to effectively respond to the development of the OTT market. It is suggested that operators should leverage their current position and access to the customer.
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