Light Reading
Telecom operators shouldn't fight the OTT players, they should make money from them

How Telcos Can Deal With OTT

Ray Le Maistre
3/21/2013
50%
50%

One of the big questions for communications service providers (CSPs) today is: How should they deal with the threat of OTT? One obvious answer is that they should look at the undeniable and unstoppable demand for third party/OTT apps and services as an opportunity to make money. How? By doing what Telenor ASA is doing -- using its billing/charging platform and large customer base to get a cut of the money that its subscribers spend on Google apps. Quite simply, CSPs have large customer bases that trust them on a billing relationship level (even if they hate them on a customer service level, it should be noted). The CSPs also have billing/charging platforms and a wealth of information about their customers. As a result, it makes sense for the CSPs to enable their customers to buy all manner of goods and services using their mobile (or fixed) services subscription, with the value of goods and services bought added to their bill. The CSPs take a cut of the transactions, their customers don't have to forge a financial relationship with another company and the third-party companies/OTT players can focus on marketing their goods and services. That's what Telenor is doing in Norway: The operator's Android smartphone customers can buy apps and services from the Google Play store and charge it to their mobile accounts in a simple and secure transaction. It makes sense, which is why the likes of Telenor and Telefónica SA (and many others) are going down this route and why companies that provide the billing mediation platforms that sit between the telcos and the content/services/goods suppliers are going to be hot property. Companies that have developed "direct carrier billing" capabilities include Bango Inc., Boku Inc. and MACH. (See Bango's Influence Just Got Bigger, Telefónica Invests in Payments Partner and MACH, payvia Team on Carrier Billing.) As an interesting aside, Bango has relationships with both Google and Telenor, yet the direct carrier billing engagement between the Norwegian CSP and Google does not involve Bango. Instead, it was brokered by the team at Telenor Digital Services. So what is the market opportunity for the telcos by embracing a "direct carrier billing" strategy and taking a cut of the resulting OTT action? Analysys Mason estimates that by 2022, CSPs can generate US$12 billion in revenues from such transactions. The alternative? CSPs can develop rival apps and services, try to do everything themselves and keep all the money. But we all know that is a strategy that will lead to a slow and painful death. — Ray Le Maistre, International Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
skirchner
50%
50%
skirchner,
User Rank: Light Beer
4/1/2013 | 4:27:17 PM
re: How Telcos Can Deal With OTT
Doesn't this lead to the path where LD providers took us. Suddenly there are providers on our bills and we have no responsible party? This is a bandwagon best left alone.-á
ClausHetting
50%
50%
ClausHetting,
User Rank: Light Beer
3/22/2013 | 12:25:02 PM
re: How Telcos Can Deal With OTT
Excellent points. Consider also this: Three quarters of smartphone traffic is not running on mobile broadband networks, it runs on Wi-Fi. The way forward is for cellular operators to take (part of) this back - OTT or not. And the way to take it back is with carrier-class Wi-Fi and seamless Wi-Fi services :-) I rest my case.
svs123
50%
50%
svs123,
User Rank: Light Beer
3/22/2013 | 3:12:13 AM
re: How Telcos Can Deal With OTT
How does the telco deals with OTT providers in terms of financial transactions. I understand that customer gets a rebate in downloading the applications from using the provider but how is the relationship between Telcos and OTT providers stay alive?
More Blogs from EuroBlog
Having taken a breather from its acquisition spree in the US, Zayo could kick-start some infrastructure consolidation action in Europe
Some good news for its Finnish parent – Nokia Siemens Networks is on a margin roll
Telefónica to boost its broadband lines in LatAm with DSL management the from ASSIA
According to the value of Nokia's takeover deal, Nokia Siemens Networks is worth less than $5B
As APAC and North America forge ahead, Europe seems stuck in yesteryear
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
LRTV Huawei Video Resource Center
Amsterdam ArenA as an Agile Campus

11|24|14   |   3:31   |   (0) comments


The Amsterdam ArenA, home of the Ajax soccer team, can be a crowded space. ArenA has partnered with Huawei to work on bringing ample bandwidth to 53,000 people at the same time.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
Net Neutrality Even Mark Cuban Could Love
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/26/2014
Operators Should Block Ads to Get Their Cut, Startup Says
Sarah Reedy, Senior Editor, 11/24/2014
$35B+ Spectrum Auction Dings Verizon, Shines Dish
Dan Jones, Mobile Editor, 11/24/2014
Like Us on Facebook
Twitter Feed