Telecom operators are responding to the encroaching threat of over-the-top players with OTT offerings of their own, new research shows.
There are now more than 80 OTT-style internet services run by telecom operators, according to a report from Disruptive Analysis.
The OTT offerings span four main service categories – content, communications, cloud and connectivity.
Report author Dean Bubley said the rise of what the research firm calls Telco-OTT services shows that operators are starting to acknowledge the “need to go on the attack.
“They must exploit the scale and ‘viral’ adoption of new services by billions of internet and smartphone users, using similar tactics to the familiar web- or VoIP-type providers,” Bubley said.
Telco-OTT services will allow operators to expand their user-base beyond countries where they have no network footprint, and benefit from new revenue streams, he said.
A telco-OTT strategy could prove an uphill battle, because few OTT-style services are easy to monetize, he said. But as comsumers' expectations for open-internet services growth, the strategy could be key to staying relevant.
“If telcos are to survive in the long-term, they need to embrace OTT, not fight it. If you can’t beat ‘em, join ‘em.”