Light Reading
Service providers should beat back the advance of the OTTs using business support systems that help provide more customized service experiences, said an Oracle keynoter at BTE.

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."

— Jason Meyers, Utility Communications Editor, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
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: Moderator
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.
Flash Poll
From The Founder
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (1) comment


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
Like Us on Facebook
Twitter Feed