Over-the-Top (OTT) applications are those that are provided via the Internet in which only a data connection is required. The wireless carrier is not directly involved and only recognized indirect revenue due to data usage. OTT players and applications have grown to become a significant threat to core services for network operators, most notably voice and messaging. Carriers do not discriminate what is being carried over the data channel and are satisfied (from a data service revenue perspective) to just sign up as many data users as possible.
LTE brings rather significant capacity gains to the mobile networks, which translates into more bandwidth to offer, more subscriptions to sell, more data consumed, and more data revenue for the carriers. On the demand side, bear services, particularly data, continues to grow at a healthy pace, but there are limits to growth in bearer service for consumer and even enterprise usage. In addition, there is an increasing awareness of Internet Protocol (IP) being cheap source of transport, and hence more people becoming aware of VoIP, and therefore OTT alternatives.
There is a big migration underway from traditional voice to data. This is not to mean that voice goes away in favor of only non-voice services. What this really means is that traditional circuit-switched (bearer) is going away, and eventually with it, traditional voice calling plans. With this evolution of bearer services becoming marginalized, the payload itself becomes the value and the simple carriage of data becomes a marginalized commodity. With this development, Value-added Service (VAS) applications become much more important to the network operators. Carriers can either sit idly by while this happens or take proactive action. We recommend the latter!!
This research evaluates the OTT threat to wireless carriers and provides specific strategies and recommendations to compete and win in the marketplace. The report evaluates the general market drivers for VAS applications and the competitive factors issues relative to OTT player offerings. The report includes analysis of LTE enabled application benefits and challenges and presents an application roadmap.
The report also includes forecasts from 2013 – 2018 for every major VAS application category including:
- Voice over LTE (VoLTE)
- Rich Communication Suite (RCS)
- Mobile Advertising
- API-based Apps
- Social Networking
- Coupons and Loyalty
- Mobile Gaming
- Mobile Virtual Goods
- Video, TV, and Second Screen
- Mobile Health
- Mobile Entertainment
- Machine-to-Machine (M2M)
- Connected Vehicles
- Public Safety
- Messaging (non RCS)
- Small Cell Targeted Advertising
- OSS/BSS Solution Providers
- Mobile Network Operators
- Mobile Software Developers
- Mobile Payment Service Providers
- Handset and Tablet Manufacturers
- Content and Applications Mediators
- Social Commerce Vendors and providers
- Mobile Marketing and Advertising Providers
- Telecommunications Infrastructure Providers
- Carriers must leverage the Cloud and APIs to deploy their own VAS applications
- The first VAS in the post-VoLTE era is RCS and it will lead to API development and integration
- Network operators must deal with the threat of these “dial around” voice over wireless IP (or VoIP over Wireless OTT)
- Partnerships such as API integration for Enterprise Dashboard will lead to improved customer loyalty as well as carrier profits
- Leading VAS (such as Mobile Health with projected $10B revenue by 2018) represent significant margin enhancement opportunities for carriers
- Forecast for every major LTE VAS application 2013- 2018
- Strategies and recommendations for wireless carrier apps
- Identify the logical carrier roadmap for LTE-enabled applications
- Identify threats to carrier’s core services and their response options
- Understand the benefits and challenges of LTE-enabled applications
- Identify strategies for network operators to deal with OTT applications
- Understand the emerging role of Personal Cloud Services for carrier customers
- Identify emerging opportunities including Connected Vehicles and Small Cell Advertising
- Understand the role and importance of telecom and enterprise APIs for carrier VAS applications.
Spanning over 110 pages, 33 tables and 28 figure; “Carrier LTE Application Strategies to Combat OTT Players and Services” report provides information on market overview, drivers and challenge, competition and key trends.
In addition to covering the Carrier Challenges, Lte Application Strategy, Lte Application Roadmap, Lte Vas Market Outlook And Forecasts, Conclusions And Recommendations, Growth Drivers For Mobile Vas Applications.
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