Enhanced QoS

Enhanced QoS can be different for every OTT application or service: increased bandwidth for streaming media sessions, optimized latency for online gaming applications, priority for online shopping or enterprise applications, etc. OTT providers would attract more customers and generate service premiums. These premiums do not necessarily have to be carried by the service’s end users. “Zero rating” (offering a particular data service for free) costs could also be carried by third party advertisers and promoters as part of a tiered partner agreement to enhance the user experience. Some markets are already exploring the possibilities.

Bandwidth is a good example. Rather than encounter the typical hiccups in HD video streamed content during data traffic rush hour, mobile video users can be offered higher bandwidth packages for uninterrupted viewing. These could be premium packages or third-party sponsored packages or data sessions.

Latency optimization for gamers in the UK is a popular example of the zero rating concept combined with QoS leveraging. Sony secured gamer grade connectivity from Virgin Media in preparation for the release of its PlayStation 4 console. Latency optimization is likely to be required for the next generation of rich online gaming, and both Sony and Virgin stand to gain from this partnership. PlayStation users will likely be offered platform optimized broadband connectivity for an optimized online gaming experience, and Virgin will ride the PS4 launch hype and leverage it to sign on more premium customers. 

Enterprise apps and services that facilitate global communication and collaboration rely greatly on dependable connections for efficient working experiences. Ensuring priority and bandwidth for OTT enterprise app sessions means that enterprise apps can always be connected for high quality conferencing, sharing and collaborating.

Prioritizing mobile shopping app sessions means fewer lost purchasing transactions. Access to a CSP’s subscriber database demographics, geolocation data and spending patterns means the shopping user experience can be highly personalized and customized. Zero rating capabilities can introduce countless different promotional engagements into the mix for contextual shopping experiences.

Service resale

In this model, the CSP’s subscriber base is leveraged by the OTT provider to offer an app or service to the CSP’s subscribers, marketed as part of a joint offer. Such offers could include enhanced QoS incentives for the service bundle. Spotify’s music streaming service is an excellent example of an OTT provider actively leveraging the huge subscriber base of European CSPs.

Carrier billing

A CSP’s payment infrastructure can be leveraged to collect payment for OTT services. CSPs can expose payment collection capabilities to the OTT and other third party developers, enabling “plug and play” charging and billing capabilities. This provides a quick and secure payment experience for the end users of the OTT service and frees providers from having to create separate payment channels.

Carrier billing and in-app purchases have been growing more popular all over the world. One of the best examples is Facebook, which partners with carriers in more than 60 countries worldwide for carrier billing of all Facebook applications.

VimpelCom Russia and SingTel (Singapore) have recently introduced new carrier billing options for Google’s Android store apps and content. Carrier billing business potential is driving operators who cannot offer this service natively to team with third parties who can. Such is the case of Telefonica Spain, which has teamed with third parties to enable API based carrier billing functionality.

Creating premium value

The CSP has a powerful and highly customizable arsenal of service-differentiating features to offer to OTT providers once key network assets are harnessed, and OTT portfolio management capabilities are acquired. This includes bandwidth, latency and priority optimization, access to subscriber base and subscriber usage patterns, device customization, exposure of payment, location and session based policy control functionality, or zero rated data sessions for promotion purposes. Each of these, or any combination of them, can be utilized to create and enhance user experience for the service users.

Google’s “Free Zone” partnership with Airtel in India and other countries exposes many new users to a free online data experience for the first time, with the potential to convert many of them into paying data service subscribers. It also enables Google to expand the audiences it can ultimately expose to sponsored ads.

Battling the inevitable commoditization of data will depend greatly on the CSP’s ability to introduce relevant value-based user experiences to customers. OTT partnerships can contribute greatly to both these abilities.

In summary: those service providers and OTT players who have done the hard work of identifying how they can collaborate—for their mutual advantage and that of their customers—are together writing an important new chapter in customer experience management.