OTTs Are Reinforcing Transformations in Telecom Service Providers

By Telecom Tech Outlook | Thursday, October 31, 2019

In the digital age like the present, all the entities that exist are now connected with cellular network services. When such a greatly impactful telecom service provider teams up with the Media and technology to offer OTT platforms and several other services, the domain undergoes a complete transformation

Fremont, CA: As the clear notifications button is pressed on the mobile screen daily, a message from the telecom service provider insisting a particular service has become a staple in any customer's daily routine. The telecom service providers relentlessly send notifications, and the customers avoid it with equal dedication. Although smartphones ringing with promotional texts is not a new idea, the concept of messaging has transformed since the last couple of years. So are the telecom service providers. 

The rates of data plans have reduced substantially, and the availability of affordable 4G-enabled services is increasing rapidly along with the rise of IoT. It is more than clear that the broadband scene has experienced an overhaul that is infinitesimal. This has resulted in making several OTT platforms the household names in the sector, universally popular platforms like Netflix, Amazon Prime are a few.

OTT video streaming industry is predicted to reach 100 percent of the population who owns a smartphone and growing at a CAGR of almost 25 percent in the process. In the present scenario, four out of five consumers use advertising-led video-on-demand (AVoD) services, while the rest of the population use subscription-led (SVoD) platforms. With a demand this great, the players in the OTT domain have grown immensely accounting to be more than three folds over the past six years. For most of the growth, telecom companies seemed to have ended up getting the shorter end of the stick as they fulfilled the roles of mere pipelines, delivering the content of several other providers. 

With the availability of high-speed Internet and smart devices, the use of OTT platforms was accepted faster than ever before. The internet infrastructure, which is expected to grow robust over the next few years with the governing bodies involved, will provide free internet in several countries from averages speeds being 1 Gbps to 10 Gbps. With the dawn of 5G infrastructure, the internet is set to become even more accessible and affordable in the future, offering a significant advantage for forming strong partnerships with Telcos and OTT.

OTT platform memberships will be provided for free along with subscriptions as a way to attract more people towards services. These OTT platforms benefit due to low customer acquisition costs and free advertising courtesy of the telecom service providers' campaigns. Telecom giants have now partnered with OTT platforms to bring the live streaming of sports matches, games, and popular shows to its customers at free of cost through various ingenious apps. The companies have also partnered with several digital content creators to bring popular shows online, especially its mobile app platform. 

When looked into the future, the telecom companies, in the near future take on more prominent roles among various avenues like show production, live sports broadcasting and original content creation by investing in, or setting up their own, media houses. This will convert them into an umbrella sector which includes content generation to distribution to consumption. 

The concept of families curling up together in front of the TV will be extinguished as the content consumption will become more personalized, taking into account the individualized experiences. The habitats of both content creators and providers will be intertwined, making isolated experiences not a viable option for either. The uniting points of the media, technology, and telecom giants at present will be forged to culminate into a hybrid version of what was once a telecom service provider. With this phenomenon being in full motion, the things will become more and more interesting with AR technologies that can be imbibed into OTT platforms for providing a total 3D effect of the content that is subscribed.

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