& cplSiteName &

Operators Can't Kik the OTT Habit

Sarah Thomas
12/12/2013
100%
0%

Do you Kik? Ever even heard of it? Maybe not unless you're under the age of 20, but it's the latest over-the-top (OTT) platform to join the 100 million club and give the operators a run for their SMS revenues.

The mobile messaging app announced today that it has more than 100 million registered users, triple what it had this time last year. The app has been around since 2010, but Kik CEO Ted Livingston tells CNet it's now signing up around 250,000 new registrants every day, primarily teens in the US.

Kik is essentially another SMS alternative, but it lets its users pick a user name rather than use their phone number. So you can give out your Kik name over other popular OTT sites such as Instagram, Tumblr, and Twitter to chat without having to reveal your phone number. People aren't using it because of the expense of SMS, but because it's more fun.

Kik is also using open APIs to let third-party developers build apps on top of the messaging service for games, music-sharing, or location-based services. One game, Costume Party, a mobile version of Pictionary for Kik users, already has around 4 million users.

One-hundred million may not carry the weight that it used to -- WeChat and Line have around 300 million, and KakaoTalk, Viber, and Tango have all cracked 100 million -- but what's remarkable to me is the level of innovation that continuously comes from the OTT camp, as well as the success that so many of them are having. Kik is now getting more downloads than another OTT success WhatsApp in the US, but WhatsApp is managing to hold on to more than 350 million users.

The traditional knock on OTTs is that they can't achieve ubiquity, like SMS, but that is increasingly becoming a moot point. It's also becoming clear that this type of innovation won't (ever?) come from the wireless operators. The smart ones are striking partnerships in the space, but even those, like Sprint Corp. (NYSE: S) with Jibe, don't even come close. Frankly, even Telefonica Digital's much-heralded homegrown Tu Go service that lets you text from your tablet is boring in comparison to what the OTTs are doing. (See Sprint Jibes With OTT Comms, Genband Acquires fring to Help CSPs Go OTT, Meet Voxox, the OTT CLEC, and Et Tu, Telefónica?)

I'm not sure what the answer is here. I've come to realize it's just not in operators' DNA to be this innovative. I would suggest that they partner, but I'm not sure a company such as Kik or WhatsApp would be interested. SMS certainly isn't dying, but it's also not thriving, and OTTs continue to point out how much it lacks.

The operators could learn a lot from these OTT players, and, if they're smart, they'll play close attention to how the next generation of mobile users chooses to communicate.

— Sarah Reedy, Senior Editor, Light Reading

(24)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 3   >   >>
Kruz
50%
50%
Kruz,
User Rank: Light Sabre
1/21/2014 | 6:10:01 PM
Re: OTT or Zipwhip
Its indeed innovative. That should happen when ott and operators work together.
lborgstede
50%
50%
lborgstede,
User Rank: Light Beer
1/21/2014 | 1:37:07 PM
OTT or Zipwhip

If you look closely you'll see plenty of new innovation in SMS. Last week at CES, Zipwhip and AT&T revealed a new iPhone cloud texting breakthrough. And then there's business texting. Thanks to companies like Zipwhip more than 200 million business landline and toll free numbers can be equipped with SMS texting. Police departments, radio stations, non-profits and other organizations are adding texting capabilities to their existing landline and toll free numbers to field customer inquiries, schedule appointments, send out reminders, take sales orders and improve customer loyalty. That seems innovative to me.

Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
12/17/2013 | 4:34:07 PM
Re: WhatsApp
iMessage does it for me on the iPhone, but that is OTT, and I'm not that young and hip. The native experience on Android was surprisingly bad for MMS, video sharing and group messages. I would have definitely used on OTT app if I stuck with Android.
Kruz
50%
50%
Kruz,
User Rank: Light Sabre
12/17/2013 | 4:31:12 PM
Re: WhatsApp
True. But other than price and anonymity, people also opt for OTT players for a richer experience. SMS doesn't satisfy users need for an instantaneous 2 way chat with video, imaging, groups, etc... OTT's all in all experience evolved in a way SMS's experience should have.
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
12/17/2013 | 10:29:18 AM
Re: Kik
I'm not sure how much one is cannabolizing the others, but that's a good question. Most have very similar feature sets, which is one reason why they can't all last. But, ultimately, you go where your friends are. People would get bored pretty quickly -- or move on to the next app -- if everyone they know is too.
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
12/17/2013 | 10:27:52 AM
Re: WhatsApp
That is true for WhatsApp and other OTTs, but Kik, in particular, has said that isn't the case. Most of its users have unlimited SMS plans. They are using it because they like the anonymity of a user name instead of their phone number, so they can connect with people on social networks. Like GroupMe, WhatsApp and others, I think people also like Kik for group messaging with their non iPhone friends.
elligottmc
50%
50%
elligottmc,
User Rank: Light Beer
12/17/2013 | 9:46:31 AM
WhatsApp
Maybe I missed this point in my skimming of the article, but one of the main reasons WhatsApp has caught on with the younger crowd (and older lads like me) is that it gets around messaging costs for texting, particularily international.  Get an ID and a data connection and your in business.  One thing the youth know how to do is avoid expenses.  OTT is the ultimate workaround.  Therefore it will continue to thrive (much to the chagrin of providers).
DOShea
50%
50%
DOShea,
User Rank: Blogger
12/16/2013 | 10:47:02 PM
Re: Kik
Are any of the other OTT apps looking like fads to any degree? I know with hundreds of millions of users, the obvious answer is know, but when a newer one comes along like kik, how is it affecting the growth pace of the older apps, if at all?
MordyK
50%
50%
MordyK,
User Rank: Light Sabre
12/13/2013 | 11:22:52 AM
Re: Telco as identity
unfortunately my optimism is tempered with those doubts as well.
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
12/13/2013 | 10:30:48 AM
Re: Telco as identity
I hope you're right, Mordy! They have the assets, as you say, but I have a hard time believing they'll build it in house or partner in a way that leverages the innovation of the OTTs without crushing it internally.
Page 1 / 3   >   >>
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Que Sera Sarah
WiC congratulates the winners of our inaugural Leading Lights awards: Cisco's Yvette Kanouff, Zayo Group's Sandi Mays and startup Grid4C.
Leaders from Mellanox, Arista Networks, Syniverse, ECI Telecom and Cisco round out WiC's inaugural female tech pioneers of the year.
Women from AT&T, Ciena, Ixia, Zayo Group and Fujitsu make our shortlist for working to advance the cause of women in the next-gen comms industry.
Join WiC and Flex's Caroline Dowling for a live radio show on Tuesday at 12PM ET on how technology is powering the fourth revolution and to what effect in the future.
New companies with a focus on video graphics, smart grid predictive analytics and a quadcopter camera make up WiC's finalists for Female-Led Startup to Watch.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
Alan Bateman, Director, Agile Transformation
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Between the CEOs
CEO Chat: UXP Systems' Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Google Fiber Can't Be Called a Failure
Carol Wilson, Editor-at-large, 8/26/2016
FirstNet: A Billion-Dollar Boondoggle?
Dan Jones, Mobile Editor, 8/26/2016
WiCipedia: Should Men Be Included? & Olympians Face Discrimination
Eryn Leavens, Special Features & Copy Editor, 8/26/2016
How the Padres Hit an IoT Home Run
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/25/2016
Google Fiber Downsizing Not Confirmed
Mari Silbey, Senior Editor, Cable/Video, 8/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.