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Mobile Operators Predicted To Lose 12 Percent Of Service Revenue To OTT

Consumer Migration to OTT Services to Cost Mobile Operators More than $100bn in Lost Revenues this Year

Juniper Research has released a new report that predicts mobile operators will lose more than 100 billion dollars or about 12 percent of their voice and text service revenue to over-the-top (OTT) messaging services and social media

A new study from Juniper Research has calculated that the consumer migration from operator voice and text services to OTT (Over the Top) messaging services and social media will cost network operators nearly $104 billion this year, equivalent to 12% of their service revenues.

Margins under Pressure 

The new research - Mobile Operator Business Models: Challenges, Opportunities & Strategies 2017-2021 - reached its conclusions by analysing the scale of operator traffic decline together with the uptake of OTT VoIP and message services. The research pointed out that the success of several platforms had substantially impacted on operator margins, with WhatsApp alone now generating nearly three times as much daily traffic as SMS.

Furthermore, it argued that with most leading OTT messaging platforms now incorporating or trialling multiple communication options, including group voice or video chat, operators would see continued erosion of traffic levels in the future.

Strategic Choices for Operators 

However, the research highlighted a number of measures that operators could introduce both to arrest the decline in core revenues and to develop new sources of income.

These include:

 • Big data and analytics packages for both consumer and IoT (Internet of Things) devices

 • Carrier billing payment options

 • Mobile money services

 • Mobile identity services

In each case, the research explored the strategic options offered by these measures and quantified the scale of the revenue streams they would provide.

The research also argued that with mobile increasingly deployed within the context of a quad-play offering, it was essential for telcos to provide consumers with attractive, original content to differentiate themselves from the competition. According to research author Dr Windsor Holden, "With mobile devices now regularly used forprimary consumption of video content as well as snacking, operators providing popular film, drama and exclusive sports events over multiple channels are at a distinct advantage."

Source: Juniper Research release


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