OTT providers are major threat to Mobile Network operators: Report

Alepo, a global provider of core network and IT solutions for communication service providers, recently released a research report titled ‘Mobile Operator Survey: OTT Services Outlook in Asia-Pacific’ highlighting the impact of OTT services on the business of Asia Pacific mobile network providers and their outlook for OTT partnerships. The report is based on a survey of mobile network operator executives conducted by Alepo to understand revenue loss and other business challenges caused by the rapid emergence of OTT providers in the region.

The key findings of the report titled are :

-Declining voice revenues versus rising OTT services is one of the biggest challenges Mobile Network Operators(MNOs) face today

– Revenue loss to OTT providers is higher for messaging (SMS) services than for other services, including mobile voice, video and mobile money.

-Nearly two thirds of respondents directly compete with OTT providers with their own video, messaging and all expressed interest in forming OTT partnerships.

-MNOs agree that OTT providers are a major threat to their business yet they are very optimistic about the potential for win-win partnerships.

Alepo enables mobile network operators to better monetize their 3G and 4G mobile data networks, partner with third-party providers, push new offers to customers in a modern mobile app, and much more. Danielle Elaine Smith, Director of Marketing at Alepo, commented on the report’s findings. “It’s clear that mobile network operators in Asia Pacific recognize the emerging threat of OTT services on the bottom line and are proactively seeking new strategies and business models to overcome that.” She added, “This report indicates that the implementation of those strategies is not limited by an unwillingness to partner by either the operators or the OTT providers, but rather by poor or outdated policy and charging control infrastructure that can’t adapt to meet the new realities of today’s dynamic APAC telecom markets.”

What challenges MNOs face in partnering with OTT providers are given in a picture below: