This blog is by Andrew Burrell at Nokia Solutions and Networks.
They are coming.
They cause chaos and destruction.
They don’t care about the devastation that they leave in their wake.
They multiply day-by-day, hour-by-hour, and minute-by-minute, sucking the life out of communities.
There’s nothing you can do to stop them. Run – while you still have a chance!
OK, so the introduction was a little melodramatic — perhaps, if you’ll excuse the pun, over-the-top — but many operators view OTT (Over-The-Top) as a horror movie. They see OTT applications such as Skype, WhatsApp and NetFlix piggy-backing on their network investments, clogging up resources and stealing their revenues.
The figures themselves are certainly frightening. Every day 2,371 new applications are born, and a single ‘rogue’ app can generate 2,422 signaling messages per hour. By 2017, there will be 32 trillion messages sent by OTT messaging applications, and by 2020, operators stand to lose a cumulative total of $479 billion to OTT players.*
So is OTT a lost cause for operators? Thankfully not! With the right tariff structure for data-services in place, there are a number of different strategies that operators can successfully adopt to turn threat into opportunity. For example:
• Partnering with OTTs: ‘3’ offers subscribers a ‘Roaming Pass’ that allows them to use Whatsapp abroad with an inclusive data allowance.
• Operators can launch proprietary services of their own: Verizon has followed this approach with its ‘Viewdini’ service – a mobile video aggregation portal that delivers mobile content from Netflix, Hulu and others.
NSN will be sharing insights on OTT market trends and the strategies open to operators at February’s Mobile World Congress (MWC) in Barcelona. We’ll bring to life our Smart Labs and NPO (Network Planning and Optimization) expertise with performance proof points such as:
• Smart Labs research has shown that activation of WCDMA software suite features like Fast Dormancy Profiling** can reduce signaling loads by 40%
• Our NPO video optimization service was able to reduce content buffering by 30% for a major European operator
Of course, we can’t solve the OTT challenge on our own. But perhaps we can help operators turn the OTT ‘horror movie’ into a ‘romantic comedy?
Find out more by visiting us in Hall 3 at MWC. And be sure to join us in our ‘Let’s Talk – OTT Strategies’ sessions in Barcelona.
* 2371 apps: Venture Beat 2013; 32 trillion OTT messages: Portio Research 2013; $479 BN figure Source: Ovum 2013
** NSN’s unique Fast Dormancy Profiling reduces control plane signaling in the radio network. The network detects legacy fast dormancy smartphones and modifies network parameters. You get more network performance, while users enjoy longer device battery life.
Check out related NSN blogs about OTT impact:
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