Global Impact of OTTs on Telcos & Forecast: 2010-2017
The increasing penetration of the affordable smartphones and popularity of the mobile internet has impacted the modern day communication methodology in a grand manner. The increasing tendency of the people to stay connected with each other was through normal voice calls and SMS a few years ago. But with the advent of instant messaging services such as GTalk, Yahoo Messenger etc, people started using the internet services to stay communicated irrespective of their location.
Sooner, with these applications coming to the mobile devices of the users, further added to the delight of the customers, as it enabled them to stay connected anytime, anywhere. Further, OTT services such as WhatsApp, WeChat, Line etc enabled the users to exchange messages to other fellow users using the same service, thereby reducing their dependency on the SMS services. Also, the services such as Skype, Viber etc enabled the users to make relatively cheaper calls/calls free of cost amongst the people using the same services. This has further dented the services of the telcos, who earlier were already facing problem of declining revenues owing to competition. The traditional revenues sources such as SMS and voice services, also seems to be dented owing to these OTT services, which primarily leverages the internet/mobile data network. These OTT services has impacted the network bandwidth of the telcos, owing to huge traffic generated through these services, which has not much impacted the revenue margins of the telcos.
With the advent in technology and ever increasing demand from the users, Over the top (OTT) market and OTT service providers continue to witness new level of innovation from major OTT service providers which includes Netlix, Nimbuzz, Facebook, Google and other OTT messengers such as WhatsApp, WeChat, Line etc.
The increasing popularity of these services is driven by factors such as increasing penetration of smart devices and mobile broadband services at affordable pricing.
Also, since these services are available at relatively cheaper/almost free of cost as compared to the traditional SMS and voice services offerings has further led to the popularity of these services. Over the coming years, these services are gaining increasing adoption in the emerging regions such as Latin America and Asia-Pacific region. Most of the customers across these regions are driven by the social activity and ability to interact with their peers and these experiences of the users are being translated to various devices including tablets, PCs, smartphones etc.
This report on the OTT service providers provides an insight about the impact of OTT service on the revenues of the telcos. It also provides an overview of the various of the various strategies of the telcos and the various categories of the OTT players. Further, the report provides brief profiles of the OTT service providers including their overview, strategy, partnerships and pricing details, wherever applicable. The report also contains a section of the partnerships & alliances of these OTT service providers with the telcos and product launches. Selective case studies have also been provided for select OTT messaging service providers.
Target Audience
Sooner, with these applications coming to the mobile devices of the users, further added to the delight of the customers, as it enabled them to stay connected anytime, anywhere. Further, OTT services such as WhatsApp, WeChat, Line etc enabled the users to exchange messages to other fellow users using the same service, thereby reducing their dependency on the SMS services. Also, the services such as Skype, Viber etc enabled the users to make relatively cheaper calls/calls free of cost amongst the people using the same services. This has further dented the services of the telcos, who earlier were already facing problem of declining revenues owing to competition. The traditional revenues sources such as SMS and voice services, also seems to be dented owing to these OTT services, which primarily leverages the internet/mobile data network. These OTT services has impacted the network bandwidth of the telcos, owing to huge traffic generated through these services, which has not much impacted the revenue margins of the telcos.
With the advent in technology and ever increasing demand from the users, Over the top (OTT) market and OTT service providers continue to witness new level of innovation from major OTT service providers which includes Netlix, Nimbuzz, Facebook, Google and other OTT messengers such as WhatsApp, WeChat, Line etc.
The increasing popularity of these services is driven by factors such as increasing penetration of smart devices and mobile broadband services at affordable pricing.
Also, since these services are available at relatively cheaper/almost free of cost as compared to the traditional SMS and voice services offerings has further led to the popularity of these services. Over the coming years, these services are gaining increasing adoption in the emerging regions such as Latin America and Asia-Pacific region. Most of the customers across these regions are driven by the social activity and ability to interact with their peers and these experiences of the users are being translated to various devices including tablets, PCs, smartphones etc.
This report on the OTT service providers provides an insight about the impact of OTT service on the revenues of the telcos. It also provides an overview of the various of the various strategies of the telcos and the various categories of the OTT players. Further, the report provides brief profiles of the OTT service providers including their overview, strategy, partnerships and pricing details, wherever applicable. The report also contains a section of the partnerships & alliances of these OTT service providers with the telcos and product launches. Selective case studies have also been provided for select OTT messaging service providers.
Target Audience
- Telecom Service Providers
- Value Added Service Providers
- Technology Vendors
- OTT service providers
1. OTT- INTRODUCTION & OVERVIEW
2. CATEGORIES OF OTT PLAYERS
3. DIFFERENCE BETWEEN OTT AND IPTV
4. WHAT IS OTT & HOW IS IT AFFECTING COMMUNICATION
4.1. Emergence and Impact of Voice OTT
4.2. Factors for increased popularity of OTT service providers
4.3. Challenges for the Mobile Voice OTTs service providers
5. HISTORY OF EVENTS: TELCOS V/S OTTS
5.1. How would the Future Telco-OTT relationship look like
6. HOW SHOULD TELCOS RESPOND TO THE OTT PLAYERS
7. OTT AS AN OPPORTUNITY FOR OPERATORS
8. STRATEGIES TO BE ADOPTED BY TELCOS AGAINST THE OTT PLAYERS
9. PROFILE OF LEADING OTT PLAYERS
9.1. WhatsApp
9.2. Netflix
9.3. WeChat
9.4. Line
9.5. Viber
9.6. Skype
9.7. Nimbuzz
9.8. Hike
9.9. Hulu
9.10. KakaoTalk
10. KEY DEVELOPMENT IN OTT – PARTNERSHIPS
11. Product Initiatives
12. Mergers & Acquisitions
13. Financial Updates
14. Forecasts
2. CATEGORIES OF OTT PLAYERS
3. DIFFERENCE BETWEEN OTT AND IPTV
4. WHAT IS OTT & HOW IS IT AFFECTING COMMUNICATION
4.1. Emergence and Impact of Voice OTT
4.2. Factors for increased popularity of OTT service providers
4.3. Challenges for the Mobile Voice OTTs service providers
5. HISTORY OF EVENTS: TELCOS V/S OTTS
5.1. How would the Future Telco-OTT relationship look like
6. HOW SHOULD TELCOS RESPOND TO THE OTT PLAYERS
7. OTT AS AN OPPORTUNITY FOR OPERATORS
8. STRATEGIES TO BE ADOPTED BY TELCOS AGAINST THE OTT PLAYERS
9. PROFILE OF LEADING OTT PLAYERS
9.1. WhatsApp
9.2. Netflix
9.3. WeChat
9.4. Line
9.5. Viber
9.6. Skype
9.7. Nimbuzz
9.8. Hike
9.9. Hulu
9.10. KakaoTalk
10. KEY DEVELOPMENT IN OTT – PARTNERSHIPS
11. Product Initiatives
12. Mergers & Acquisitions
13. Financial Updates
14. Forecasts
LIST OF FIGURES
Figure 1: Global Voice and SMS revenues lost to OTT Applications, 2012-2016
Figure 2: Various Categories of OTT players
Figure 3: Impact of OTT on Telecom revenues - SMS, Data, Interconnect
Figure 4: Mobile Voice OTT forecast by scenario
Figure 5: How Telcos have responded to the threat from OTTs
Figure 6: Major strategies to be adopted by the Telcos against the OTTs
Figure 7: Monthly Active Users (in million) of select services, after 4 years of launch
Figure 8: Reasons for UK WhatsApp users preferring instant messaging over SMS, 3Q2013 .
Figure 9: Monthly active user count of WeChat, 2Q2011-2Q2014
Figure 10: Lionel Messi promoting WeChat services
Figure 11: Brand Ambassadors promoting the WeChat messaging
Figure 12: WhatsApp active user base in India, Aug2013-Apr2014
Figure 13: Line Users count globally, 2012-2014
Figure 14: Number of registered LINE app users in selected countries, February 2014
Figure 15: Line promotions in Spain
Figure 16: Viber and Globe Telecom promotions partnership
Figure 17: Comparison of International Phone Traffic and International Skype Traffic, 2005-2012
Figure 18: Impact of Skype on Carrier Traffic
Figure 19: Growth of Nimbuzz user base, 2008-2013
Figure 20: KakaoTalk registered users, 2011-2014
Figure 21: 100 improvement projects of KakaoTalk
Figure 22: SMS and OTT traffic trend, 2010-2016
Figure 23: Global Messages sent via mobile handsets by Service Type, 2010-2018
Figure 24: Over-the-top (OTT) content revenue trend, 2008-2017
Figure 25: Global Pay TV Revenues Trend, 2011-2017
Figure 26: North America Pay TV Revenues Trend, 2011-2017
Figure 27: Over-the-top (OTT) share of total Pay TV revenue worldwide, 2012-2017
Figure 28: OTT TV Revenue growth (Traditional v/s Online/interactive) trend, 2008-2014
Figure 29: Share of Video on Demand (VoD) users in select countries, 2010-2013
Figure 30: Global Online Television and Video Revenue (in $ million) trend, 2010-2018
Figure 1: Global Voice and SMS revenues lost to OTT Applications, 2012-2016
Figure 2: Various Categories of OTT players
Figure 3: Impact of OTT on Telecom revenues - SMS, Data, Interconnect
Figure 4: Mobile Voice OTT forecast by scenario
Figure 5: How Telcos have responded to the threat from OTTs
Figure 6: Major strategies to be adopted by the Telcos against the OTTs
Figure 7: Monthly Active Users (in million) of select services, after 4 years of launch
Figure 8: Reasons for UK WhatsApp users preferring instant messaging over SMS, 3Q2013 .
Figure 9: Monthly active user count of WeChat, 2Q2011-2Q2014
Figure 10: Lionel Messi promoting WeChat services
Figure 11: Brand Ambassadors promoting the WeChat messaging
Figure 12: WhatsApp active user base in India, Aug2013-Apr2014
Figure 13: Line Users count globally, 2012-2014
Figure 14: Number of registered LINE app users in selected countries, February 2014
Figure 15: Line promotions in Spain
Figure 16: Viber and Globe Telecom promotions partnership
Figure 17: Comparison of International Phone Traffic and International Skype Traffic, 2005-2012
Figure 18: Impact of Skype on Carrier Traffic
Figure 19: Growth of Nimbuzz user base, 2008-2013
Figure 20: KakaoTalk registered users, 2011-2014
Figure 21: 100 improvement projects of KakaoTalk
Figure 22: SMS and OTT traffic trend, 2010-2016
Figure 23: Global Messages sent via mobile handsets by Service Type, 2010-2018
Figure 24: Over-the-top (OTT) content revenue trend, 2008-2017
Figure 25: Global Pay TV Revenues Trend, 2011-2017
Figure 26: North America Pay TV Revenues Trend, 2011-2017
Figure 27: Over-the-top (OTT) share of total Pay TV revenue worldwide, 2012-2017
Figure 28: OTT TV Revenue growth (Traditional v/s Online/interactive) trend, 2008-2014
Figure 29: Share of Video on Demand (VoD) users in select countries, 2010-2013
Figure 30: Global Online Television and Video Revenue (in $ million) trend, 2010-2018
LIST OF TABLES
Table 1: Difference between OTT and IPTV
Table 2: Select Operator partnerships of WhatsApp
Table 3: Netflix: Financial Information, 2011-2013
Table 4: Netflix: Operational Information, 2011-2013
LIST OF CASE STUDIES
Case Study 1: WhatsApp Partners with E-Plus in Germany to sell SIM worth €10 to become a partial MVNO
Case Study 2: WeChat increases its user base in India through celebrity endorsements
Case Study 3: Line increases its user count to 18 million in Spain
Case Study 4: Viber Partners with Globe Telecom to increase its users count
Case Study 5: KakaoTalk emerges as the most popular instant messaging service provider in South Korea
Table 1: Difference between OTT and IPTV
Table 2: Select Operator partnerships of WhatsApp
Table 3: Netflix: Financial Information, 2011-2013
Table 4: Netflix: Operational Information, 2011-2013
LIST OF CASE STUDIES
Case Study 1: WhatsApp Partners with E-Plus in Germany to sell SIM worth €10 to become a partial MVNO
Case Study 2: WeChat increases its user base in India through celebrity endorsements
Case Study 3: Line increases its user count to 18 million in Spain
Case Study 4: Viber Partners with Globe Telecom to increase its users count
Case Study 5: KakaoTalk emerges as the most popular instant messaging service provider in South Korea
