Light Reading

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        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.
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
To keep up with consumers' increasing digital lifestyles, an IT system and operating model overhaul is required using a modern BSS, IES and analytics.
Hot Topics
Eurobites: Nokia Seals HERE Sale
Paul Rainford, Assistant Editor, Europe, 8/3/2015
Verizon Small Cells Ready to Rock in Chicago
Sarah Thomas, Editorial Operations Director, 7/31/2015
Cable Feuds With Senate Dems Over STBs
Alan Breznick, Cable/Video Practice Leader, 7/31/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
I was pleasantly surprised when Ericsson recently agreed to let me interview its CEO, Hans Vestberg. Traditionally, mega-companies like Ericsson (or Cisco) have kept ...
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Cats with Phones
Comes With Free Phone Stand Click Here
Who says cats don't have any skills?