Are the Telecom Operators Losing Their Revenues Against Social Media or Will They Going to Leverage the Social Media Factor to Increase It?
Source: Staying relevant in the age of over-the-top services
A triangular value proposition by Nokia Siemens Network
Over-the-top players changing the game for Traditional operators
The companies that provide services on top of networks are driving much of today’s innovation. Unlike conventional communications service provider (operators) businesses, where the services and infrastructure are linked and network operators control the value chain, OTT services are delivered without any affiliation with the network. But opportunities are open to operators that add value to the use of over-the-top services. Traditional operators built their businesses on communications networks, but OTT providers have decoupled services from networks in terms of both the technology and business. Broadband connectivity is a growing business, yet operators must find ways to generate new revenue streams and avoid losing relevance within the value chain.
OTT providers today wield immense power in the market and include household names in content (YouTube, Netflix or Lovefilm), advertising (Google), communications (Skype and Facebook), commerce (Amazon and eBay) and device platforms (Apple, Microsoft) There are huge rewards at stake. For example, Facebook had more than 800 million subscribers in January 2012 - reaching more than half of the online population in many countries. Skype’s VoIP service increased its share of international call minutes from 8% to 25% between 2008 and 2011. Results like these mean that revenues for over-the-top service providers are predicted to grow by more than 40% between 2010 and 2015.
The good news is that with the right approach, operators can evolve their business and occupy key parts of the value chain, even as the relationship between OTT players and end users gets stronger.
Key questions for operators * What are sustainable value propositions in the new business environment? * How can we maintain a relevant position in the ecosystem? *
A triangular value proposition by Nokia Siemens Network
Over-the-top players changing the game for Traditional operators
The companies that provide services on top of networks are driving much of today’s innovation. Unlike conventional communications service provider (operators) businesses, where the services and infrastructure are linked and network operators control the value chain, OTT services are delivered without any affiliation with the network. But opportunities are open to operators that add value to the use of over-the-top services. Traditional operators built their businesses on communications networks, but OTT providers have decoupled services from networks in terms of both the technology and business. Broadband connectivity is a growing business, yet operators must find ways to generate new revenue streams and avoid losing relevance within the value chain.
OTT providers today wield immense power in the market and include household names in content (YouTube, Netflix or Lovefilm), advertising (Google), communications (Skype and Facebook), commerce (Amazon and eBay) and device platforms (Apple, Microsoft) There are huge rewards at stake. For example, Facebook had more than 800 million subscribers in January 2012 - reaching more than half of the online population in many countries. Skype’s VoIP service increased its share of international call minutes from 8% to 25% between 2008 and 2011. Results like these mean that revenues for over-the-top service providers are predicted to grow by more than 40% between 2010 and 2015.
The good news is that with the right approach, operators can evolve their business and occupy key parts of the value chain, even as the relationship between OTT players and end users gets stronger.
Key questions for operators * What are sustainable value propositions in the new business environment? * How can we maintain a relevant position in the ecosystem? *