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The Connected Consumer Survey 2015: OTT communication services

The Connected Consumer Survey 2015: OTT communication services

OTT messaging and voice apps are widely adopted, and are disrupting mobile operators' businesses. According to our 'Connected Consumer Survey', OTT messaging apps have had the greatest impact because they offer a differentiated user experience compared with SMS, while the use case for VoIP apps is less clear in most countries.


Executive summary
Messaging was the most widely used OTT communication service on handsets, and video calling apps were used more than VoIP
OTT messaging penetration and SMS usage are highest among younger age groups in Europe and the USA
Overseas workers in the Middle East continue to use Skype to call home, but newer apps are challenging its position as the market leader
Recommendations
Recommendations
Penetration of communication apps
Messaging was the most widely used OTT communication service on handsets, and video calling apps were used more than VoIP
Asia–Pacific: The market is fragmented so no service dominates, and competition is intense in Indonesia and Malaysia
Europe and the USA: Turkey has joined Germany and Spain as good markets for WhatsApp Messenger, and Skype remains strong elsewhere
Middle East and Africa: VoIP and video calling were more prevalent than in other regions, largely because of expatriate communities in Qatar and UAE
OTT messaging and SMS substitution
The – age group typically had the highest penetration of OTT messaging apps – particularly in Germany and Spain
The ‘messaging giants’ in Europe and the USA appeal across age groups and platforms, but a long tail of services is catering to niche segments
OTT messaging penetration and SMS usage are highest among younger age groups in Europe and the USA
A lack of universal reach limits the ability of OTT apps to fully replace SMS, but substitution is advanced in several countries nevertheless
Unlimited SMS message allowances may have restricted OTT messaging penetration in some countries, but SMS volumes are decreasing overall
Many operators in Asia–Pacific have chosen to partner with OTT players instead of competing directly in the messaging market
VoIP and video calling services
VoIP is strongest in the Middle East where the service is most widely used by older respondents
Overseas workers in the Middle East continue to use Skype to call home, but newer apps are challenging its position as the market leader
In countries that do not have large communities of immigrants, VoIP is not providing a compelling reason to convert usage from voice minutes
Video calling was more widely used than VoIP in most markets, suggesting that users are looking for more than just price advantage
Methodology and panel information
Methodology
Panel information: France and Germany
Panel information: Indonesia and Malaysia
Panel information: Morocco and Poland
Panel information: Qatar and Saudi Arabia
Panel information: South Africa and South Korea
Panel information: Spain and Turkey
Panel information: UAE and UK
Panel information: USA
About the authors and Analysys Mason
About the authors
About Analysys Mason
Research from Analysys Mason
Consulting from Analysys Mason
List of figures
Figure Geographical coverage of our Connected Consumer Survey
Figure OTT communication app usage on smartphones, by category, country and region
Figure SMS usage and OTT messaging app penetration by age group, Europe and the USA
Figure Penetration of Skype among handset owners by nationality and country, Middle East and Africa
Figure Penetration of VoIP apps, Middle East and Africa
Figure OTT communication app usage on smartphones, by category, country and region
Figure Penetration of OTT communication apps on handsets, Asia–Pacific
Figure Penetration of VoIP and OTT messaging apps by country, Asia–Pacific
Figure Penetration of OTT communication apps among smartphone users, Europe and the USA
Figure : Penetration of VoIP and OTT messaging apps by country, Europe and the USA
Figure : Penetration of OTT communication apps on handsets, Middle East and Africa
Figure : Penetration of VoIP and OTT messaging apps by country, Middle-East and Africa
Figure : Penetration of OTT messaging apps among smartphone users, by age group and country, Europe and the USA
Figure : Penetration of OTT messaging apps among OTT messaging users, Europe and the USA
Figure : Penetration of OTT messaging apps among OTT messaging users, by age group and country
Figure : SMS usage and OTT messaging app penetration by age group, Europe and the USA
Figure : Use of OTT messaging and SMS by smartphone owners, by country and region
Figure : SMS message allowance per month, by country, Europe and the USA
Figure : SMS volume sent per subscriber, by country, Europe, –
Figure : Operator partnerships with OTT players by region, November
Figure : Penetration of VoIP apps among handset users, by country and age group, Europe and the USA
Figure : Penetration of VoIP apps among mobile Internet users by country and age group, Asia–Pacific and Middle East and Africa
Figure : Penetration of Skype among handset owners by nationality and country, Middle East and Africa
Figure : Penetration of VoIP apps among handset owners, Middle East and Africa
Figure : Reasons stated by tablet and PC VoIP service users for not using VoIP services on handsets, and , Europe and the USA
Figure : Penetration of VoIP and video-calling services by country and region

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