& cplSiteName &

How to Fight the OTTs

Jason Meyers

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
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
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?
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!
User Rank: Light Sabre
6/24/2014 | 7:16:35 PM
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.
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.
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.

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.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
Wednesday, November 9, 1:00PM EST
MANO 101
Friday, November 11, 1:00PM EST
Open Source for NFV MANO
Wednesday, November 16, 1:00PM EST
SDN 101
John Isch, Practice Director, Network & Voice, Orange Business Services
Friday, November 18, 1:00PM EST
SDN & Open Source
Christopher W. Rice, Senior Vice President of AT&T Labs, Domain 2.0 Architecture and Design
in association with:
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 Custom TV
OneAccess NFV Solutions

10|26|16   |   5:30   |   (0) comments

Antoine Clerget, CTO of OneAccess, discusses how his company has expanded its product line from enterprise-class routers to include a universal virtualized CPE as well as a suite of VNFs to help telco customers evolve to an NFV future.
LRTV Custom TV
The Journey Toward Carrier-Grade WiFi

10|26|16   |   3:39   |   (0) comments

In this Light Reading interview, Dave Sperling, CTO at Smith Micro Software and active participant of the WBA's policy working group, discusses the need for carrier-grade WiFi. Technical and business challenges slowing the fulfillment of this goal are addressed, as well as management strategies that will enable communication service providers to optimize end user ...
LRTV Custom TV
ZTE BBWF Highlights

10|26|16   |     |   (0) comments

At BBWF 2016, ZTE showed a broad range of innovative technologies that are kick-starting an ultrafast broadband journey.
LRTV Custom TV
Next-Generation Technology Beyond DOCSIS 3.1

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Liu Jianhua speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Hybrid Video Solutions to Change TV, Change Future

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Ian Locke speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei Future-Oriented Giga Coax Network

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Allen Wang speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei at SCTE 2016

10|20|16   |     |   (0) comments

Join Alan Breznick of Light Reading and take a sneak peek at the Huawei booth at SCTE 2016.
LRTV Custom TV
Assuring Network Quality in a Rapidly Changing Environment

10|20|16   |     |   (0) comments

As the rate of change and complexity increases in agile networks, the importance of introducing DevOps methodologies for integrating active test and assurance solutions throughout the full service lifecycle becomes critical to ensure that customers are experiencing the service quality they demand. The industry landscape is changing, and software-based test and ...
Telecom Innovators Video Showcase
A10 Networks on Service Providers' Industry Needs

10|20|16   |     |   (0) comments

Light Reading's Steve Saunders hears how A10 enables service providers to accelerate, secure and optimize their application delivery to drive down costs, enhance service availability, and better respond to customer requirements, so they can improve customer satisfaction, monetize their network, and grow revenues.
LRTV Custom TV
New NFV Use Cases for Cable TV

10|19|16   |     |   (0) comments

A large number of NFV use cases are focused on the enterprise domain, looking at virtualization of customer-premises equipment (CPE). To date, there has been little focus on the use cases and business case for virtualization of the video content delivery networks required to deliver unicast and streaming video to consumers. Amdocs commissioned Analysys Mason to ...
Women in Comms Introduction Videos
Meet the Future Workforce: New Faces, Expectations & Motivations

10|19|16   |   5:33   |   (1) comment

Millennials and their younger peers, Gen Z, expect more out of their network and more out of their work. Intel's Lynn Comp shares how the industry can prepare for this new generation of workers.
LRTV Custom TV
ZTE Global Services User Congress 2016 Highlights

10|19|16   |     |   (0) comments

ZTE held its 2nd Global Service User Conference in Dusseldorf on October 13-14. Representatives from network operators, leading industry analysts and ZTE senior expertsattended the event, exploring the best practice in managed services and the vision to transform network operations into the operations center of the future (OpCF) in the software-defined networking ...
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Trump: Dump AT&T/TW & Comcast/NBC
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/24/2016
Google Fiber Hits Pause Button, Scales Back
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/26/2016
T-Mobile: AT&T & TW Means Ma Bell Not Focused on Mobile
Dan Jones, Mobile Editor, 10/24/2016
Sprint: Revenue up 3%, Capex Will Rise Again
Dan Jones, Mobile Editor, 10/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
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.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
'Oh, Were You Looking for This?' Click Here
'I was just playing some games...'
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.