& cplSiteName &

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        ADD A COMMENT
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
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
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.
Huawei Videos
The Power of Next-Gen Unified Communications

8|23|17   |   04:46   |   (0) comments


How Huawei's unified communications and videoconferencing platforms are saving time and money and improving customer experience for users in Italy.
LRTV Documentaries
Phone Review: Moto Z2 Play

8|22|17   |   1:54   |   (0) comments


Light Reading Mobile Editor Dan Jones reviews the Moto Z2 Play, which he calls 'a nice modern Android phone with good battery life and one of the nicest cameras' he's seen. The Moto Z2 Play is a Gigabit LTE-ready phone, but we were not able to test speeds that fast in the US.
LRTV Documentaries
Three Gets Smart(y), BT Invokes Twitter – The Recap

8|21|17   |     |   (0) comments


From Telecoms.com, a recap of the week's telecoms talking points. It's been a week of gimmicks as Three tests out a pay-as-you-go sub-brand called Smarty; Comcast
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
AT&T Spreads Fiber & G.fast Wings
Alan Breznick, Cable/Video Practice Leader, Light Reading, 8/22/2017
Why AT&T May Dump Home Security Biz
Mari Silbey, Senior Editor, Cable/Video, 8/21/2017
Verizon & Friends Bust Through Gigabit LTE in the Lab
Dan Jones, Mobile Editor, 8/21/2017
Disney, iflix Team Up to Take Down Netflix
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 8/22/2017
WiCipedia: Dolly Babes, Manifesto Backlash & 'Brotastic' Failures
Eryn Leavens, Special Features & Copy Editor, 8/18/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
Talk About a Custom-Made Workstation! Click Here
Proper ergonomics indeed.
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.