During January 2012 I asked my readers to participate in a survey on Broadband Traffic Management (BTM) trends - DPI, policy management, Value-added Services, Over-the-Top competition and congestion management for mobile and fixed operators. The main focus of the survey was on how operators will be using the technology (see the executive summary here).One of the questions was about the opportunities for MNOs to increase revenues from delivering OTT services to their subscribers - "MNOs will be able to monetize OTT traffic by:". Several options were presented, allowing responders (N=81) to mark more than one answer (see the chart below).
The most popular opportunity was "offering subscribers premium services, based on higher QoE for OTT services" (83%) while 44% think MNOs can "encourage subscribers to upgrade to higher service plans" (tiered services). The two may be connected, although "service plans" were not defined in the 2nd option, and may be a higher data cap or other service factors.
"Charging subscribers for the use of certain applications" (for example those that compete with legacy services, such as voice, messaging or video), seems to be a less popular method (25%).
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Service providers especially mobile operators have been struggling with how to monetize OTT services for quite some time. The first survey result regarding offering premium plans is very positive although monetizing OTT services can go way beyond just managing QoE. The key to defining successful personalized services is to move from usage-based to value-based pricing models. For example, giving the subscriber more viewing time i.e., a higher data limit for video streaming based on time-of-day or a particular device or service. Developing personalized services definitely requires thinking outside the box and some network investments, but it can result in creating incremental revenue streams with a fast ROI.
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