Operators unable or unwilling to execute OTT strategies

While the relationship between operators and OTT players is no longer hostile, operators are not executing strategies that would see them profit from new sources of revenue.

That is the headline finding of a new survey by back office vendor Openet and research house STL Partners, which sought the views of 25 OTT providers and 15 operators.

The survey found that there was a strong alignment between the two parties on new services including profiling, ID/authentication, payments, and network QoS.

Equally, most operators have strategies to partner with OTT providers.

However, operators are either unable or unwilling to make the necessary organisational changes that would enable them to execute these strategies.

According to the survey’s authors, unless operators learn to collaborate with OTT providers, they run the risk of becoming dumb pipes.

“Risk of fragmentation is very real for operators if they don’t take the necessary steps to unlock the value of third-party partnerships,” said Michael Manzo, CMO of Openet.

According to the survey, OTT providers may require operators to collaborate with one another to create federated or clearinghouse services, which presents further execution challenges.

“Telecom operators are caught in a ‘prisoner’s dilemma’ which is preventing them from collaborating among themselves and with OTT application and content providers,” commented Chris Barraclough, MD and Chief Strategist at STL Partners.

“The desire for individual players to pursue service differentiation is actually inhibiting value creation at the industry level. The time has come for operators to work together to build value for third-parties in an effort to better serve consumers,” he added.

More News

UK telcos could be forced to shell out £185 million for poor service under Ofcom plans UK telcos could be forced to shell out £185 million for poor service under Ofcom plans Telecoms customers in the UK who experience poor landline or broadband service could be subject to automatic compensation under new proposals made by regulator Ofcom. More detail
eir loses CCO, appoints new CITO eir loses CCO, appoints new CITO Jon Florsheim has quit as Chief Commercial Officer of eir, the Ireland-based operator has revealed. More detail
Telefónica wins five-year Ferrovial comms deal Telefónica wins five-year Ferrovial comms deal Telefónica will supply infrastructure company Ferrovial with a range of communications services after winning a five-year deal. More detail
Virgin Media makes 100MBps standard for all UK broadband customers Virgin Media makes 100MBps standard for all UK broadband customers Virgin Media has revamped its bundles and made broadband speeds of 100MBps the minimum that customers will receive. More detail
BT reveals Michelin, Co-op contract wins BT reveals Michelin, Co-op contract wins BT has won deals to supply a range of services to Michelin and the Co-operative Group, it has revealed. More detail
    

@eurocomms