Wednesday, February 13, 2013

Swisscom: OTT Needs Good Access; Good Access Gets Revenues

AT&T  (see "AT&T CEO: OTT Video not a Problem; We Focus on Broadband" - here) is not alone. An interesting strategy presentation (here, below) by Swisscom, provides their view on how MNOs may also benefit from OTT services:
  • Investing: To use global (OTT) services, customers become more dependent on best local access networks. With the strong rise of PC, tablet, smartphone and M2M penetration, an exploding range of OTT (“over the top”) service providers offer “free” alternatives to the traditional products (voice, SMS, data consumption) of telecom operators. OTT “apps” however thrive only if the network performance is state of the art. For telecom operators, here lies their chance to make “local” important again. Only by offering the best (serviced) network, they can charge decent fixed monthly fees for access to these networks. Chapter 2 continues by exploring the importance of best access to secure growth.
  • Leveraging: By offering good local products and services, and monetize through clever pricing 
  • Chapter 3 shows how we are performing on the Products side with state of art data, voice, entertainment and other smart solutions. In both Switzerland and Italy. But also how we start changing Pricing paradigms to contain cannibalisation by IP and start price differentiation on speed, security and availability

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