& cplSiteName &

How to Fight the OTTs

Jason Meyers
6/23/2014
50%
50%

Visitors to Light Reading's Big Telecom Event last week heard an awful lot about SDN and NFV, so they were probably relieved when one speaker decided to give them a breather from those ubiquitous acronyms.

Oracle keynoter Brian Pawlus told the audience that he would instead focus on how next-generation business support systems (BSS) can help service providers achieve what he called "connected lifestyle monetization."

Pawlus, who is director of product marketing for Oracle Corp. (Nasdaq: ORCL), pointed out that despite ever-increasing connectivity of people and devices, service provider profit margins are decreasing -- due in large part to the erosion caused by over-the-top providers. To fight off the OTT threat, service providers have to make themselves more relevant in the minds of customers.

"We've done a very good job of understanding our customers," Pawlus said. "But who do they think of when they pick up the device? It's not the operator -- it's one of these over-the-top providers."

The key to connected-lifestyle monetization, he said, is moving from the mindset of selling a me-too product to a mindset of the buyer, and providing a portfolio of lifestyle services that customers can personalize and control.

"Customers are willing to pay more if we offer that kind of value -- personalization, control and relevance to what they're doing," he said.

Network operators should focus on product innovation via quality rather and price, real-time customer engagement, and increased profitability via operational efficiency, he said. Systems that help operators with functions such as charging, billing policy, and analytics -- to monitor churn and customer segmentation, for example -- will help operators get there. Pawlus even encouraged more cooperation with OTTs, such as exposing charging policy to OTTs and billing for them through the service provider's bill.

"Attract, retain, influence," Pawlus said. "These are tried and true business concepts."

ó Jason Meyers, Utility Communications Editor, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
mohammed.sha
50%
50%
mohammed.sha,
User Rank: Light Beer
6/30/2014 | 11:45:39 AM
Re: Fightin' words
@nasimson it is a big amount indeed! They used the Veris O2P (read O-squared-P). The detailed case study is available here: http://www.asiainfo-linkage.com/ProductsSolutions/VerisO2P.aspx
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
6/30/2014 | 11:09:08 AM
Re: Fightin' words
@ sha : USD 200 Million dollars a month is an impressive number for any telco. Can you please share some details of the arrangement? Which collaboration platform are you referring to?
mohammed.sha
50%
50%
mohammed.sha,
User Rank: Light Beer
6/26/2014 | 5:35:07 AM
Re: Fightin' words
'Fighhting OTTs' is not the answer indeed! One example of partnerships between Operators and OTTs generating great benefits for operators is the world's 10th largest operator -  China Telecom. In 2011, this operator invested in a collaboration platform to converge its own products with OTTs, and to open up its IT systems for use by the OTTs. Result - China Telecom generates nearly $200 million a month from this initiative!
Atlantis-dude
50%
50%
Atlantis-dude,
User Rank: Light Sabre
6/24/2014 | 7:16:35 PM
OTTs
Service providers have geographic boundaries. Also they are very poor in developing interfaces that provide personalization, .. These limitations are hard to transcend and are the reason why OTTs became successful in the first place and to this day do not provide the same services at the same scale as service providers.
futurephil
50%
50%
futurephil,
User Rank: Light Sabre
6/23/2014 | 12:56:15 PM
Re: Fightin' words
I agree with that. One way is to take advantage of virtualized network functions that allow for the delivery of Web-scale applications at a very low cost.

Tiscali's Indoona social networking app is one example of an over-the-top service that helps a telco extend its brand, reach and network beyond the borders of its traditional facilities-based business.
jabailo
100%
0%
jabailo,
User Rank: Light Sabre
6/23/2014 | 11:45:19 AM
Re: Fightin' words
As much as they may want to see OTT as skimming the cream, in many cases these direct content providers are too fighting to stay relevent.   Look at how Netflix is moving into original programming and how YouTube has stuck ads in every 20 second cat video it could find.  

The service providers have succeeded mainly riding on the backs of the enourmous volume of free content generated by Web authors and creators.   Even Google itself would not exist if millions of people had not blogged and filmed the millions of hours of desirable content that exists on the Web.

 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
6/23/2014 | 10:03:22 AM
Fightin' words
Network operators need to understand that "fighting" OTT competitors is not the answer -- and the message from the Oracle keynoter reinforces the idea that drawing battle lines is not a smart idea. Figuring out a profitable and sustainable model for OTT service delivery should now be the biggest priority for all network operator five-year plans.
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.
LRTV Interviews
No Stopping Cable's Ethernet Gains

12|9|16   |     |   (0) comments


Vertical Systems' Erin Dunne explains why US cable operators, which now command a record-high 26% of the Ethernet market, will keep boosting their share.
LRTV Interviews
Fixing IoT Security Is an Ecosystem Challenge

12|9|16   |   05:34   |   (1) comment


Level 3 Communications' Chief Security Officer Dale Drew says service providers, manufacturers and even consumers must combine to halt massive DDoS attacks using IoT devices in botnets. The solution he has in mind includes reputation-based routing by the service provider but also more secure endpoint devices and greater consumer awareness.
LRTV Interviews
Cox Clears $2B in Business Revenue

12|8|16   |     |   (0) comments


Cox's Jeff Breaux discusses how the third-largest US MSO will reach the $2 billion revenue mark this year and plans to hit $3 billion by 2021
LRTV Interviews
Can Cable Climb Upmarket?

12|7|16   |     |   (0) comments


Carol Wilson and Alan Breznick assess cable's prospects for winning more enterprises in a landscape rocked by corporate M&A activity.
Women in Comms Introduction Videos
TalkTalk Exec: Find Your North Star at Work

12|7|16   |   3:38   |   (1) comment


Women need to find their purpose, a professional North Star, and create a personal board for themselves, according to Alex Tempest, director of partners at TalkTalk Business.
LRTV Interviews
Verizon: Beware Unknown Unknowns

12|7|16   |   04:58   |   (0) comments


Chris Novak, director of the Verizon Enterprise Solutions Risk Team, explains that enterprises who don't conduct a thorough audit of their assets often leave some things unprotected because they don't know they exist. Many times these unprotected assets are part of corporate M&A activity but left unshielded they can become a hacker's playground, he tells Light ...
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (2) comments


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
Upcoming Live Events
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
Consolidated Snaps Up Fairpoint for $1.5B
Iain Morris, News Editor, 12/5/2016
Small Arctic ISP Caches Netflix in New Way
Mari Silbey, Senior Editor, Cable/Video, 12/7/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
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
A Mobile Safari Click Here
Literally.
Latest Comment
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.