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Collaborate with OTT players or lose out: Ovum

Madura McCormack | Sept. 12, 2012
Analysis points towards a needed shift in the mindset of mobile network providers

Mobile network operators (MNO) need to collaborate with content partners and over-the-top (OTT) players to avoid uncontrolled revenue loss, says independent analysis firm Ovum in a new report.

"Operators need to be more realistic and recognize that the OTT community is a meaningful threat to revenues," said senior analyst for telco strategy at Ovum Nicole McCormick.

With the undeniable popularity of the services that OTT players deliver, this dominance presents new challenges to MNOs

Ovum says to overcome this, operators need to re-evaluate their business models and become part of the OTT value chain.

"Revenue loss in traditional services is unavoidable, but there are new revenues available if MNOs can find common ground with OTT players," McCormick added.

Collaboration could also mean potentially less spending by MNOs for their services.

The report uses the example of Asian markets such as China and South Korea which are witnessing the decline in messaging revenues. Operators which are willing to "compete and collaborate" will pull away in terms of revenue, from traditional operators who are not.

All in all, operators should be more open to approaching partnerships with content providers and OTT players, while keeping in mind to view the issues and changing landscapes from the eyes of the average consumer.


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