Thursday, February 23, 2012

[Informa, Ovum]: How can MNOs Stop Revenues Lost to OTT Voice and Messaging?

Allot showed us the huge growth in VoIP traffic (114% in 2nd half of 2011 - here) - what does it mean, and what could be done about it?

A recent report from Ovum shows the hard numbers - "New estimates from Ovum indicate that consumers’ increasing use of IP-based social messaging (messaging that occurs through platforms other than SMS, MMS, or email, and which is either tied to a social network or has a social component attached) services on their smartphones cost telecom operators $8.7bn in lost SMS revenues in 2010, and $13.9bn in 2011".

Informa research concludes that "Operators must provide internet-style communication services to remain relevant to customers and to challenge the OTT services which are beginning to erode voice and text revenues .. In 2012 the increase in smartphone penetration will cause voice and messaging revenue erosion of 3.9% and 1.6% in Western and Eastern Europe respectively .. Operators are implementing a combination of five different strategies in order to face up to the OTT-communication threat".

Dario Talmesio (pictured) principal analyst, Informa said: “Unfortunately for them, most of these strategies are short-sighted as too much emphasis is given to fighting OTT rather than satisfying their customers .. Operators wanting to remain relevant to their customers need to give them internet-style communication services, as voice and messaging as we know it will soon be a thing of the past.”

Neha Dharia (pictured), consumer analyst at Ovum said: “Operators must remain open to partnering with app developers, sharing end-user data with them and allowing integration with the user’s social connections. Working closely with handset vendors will also be important; they control some of the most popular social messaging apps, and can also provide preloaded applications. The most important factor, however, will be co-operation between telcos. They are no longer competing merely among themselves, but must work together to face the challenge from the major Internet players

See "Operators need clear strategy to combat free web-based apps such as WhatsApp" - here and "Ovum estimates that operators lost $13.9bn in 2011 due to social messaging" - here.

See more on OTT traffic monetization from Yankee Group (here and here), Dean Bubley,  ABI Research and TDG,

1 comment:

  1. it wouldnt have died until the sms cap was put on. we never wished to move to data services . now tht they have forced us to move to data services cause they only put bars on sms texting by putting sms cappings and making the charge higher...