Friday, 31 May 2013

Friday rant: OTT, Viber, Roaming, etc.

The same old story, mobile operators are seeing that their revenue is not growing, even though they are upgrading their networks and introducing new features / technologies. The following is from Total Telecom:

The global telecom services market generated revenue of €1.12 trillion in 2012, although at 2.7% growth was slower than in the previous year, according to the 2013 DigiWorld Yearbook published by IDATE on Thursday.
The "DigiWorld" as a whole - which also includes telecoms hardware, software and computer services, computer hardware, TV services, consumer electronics and Internet services – recorded revenues of €3.17 trillion last year, up 2.8% on 2011. By 2016 that figure will have risen to €3.66 trillion, IDATE predicts, with telecoms services contributing €1.25 trillion (see chart).
Telecoms operators are experiencing flat growth, while over-the-top (OTT) providers are seeing revenues increase by 15% a year, Vincent Bonneau, head of IDATE's Internet business unit, told attendees at the DigiWorld Yearbook launch in London earlier this month.

Another interesting piece of news was that Viber has launched a desktop application which means it can now rival Skype fully.

Guess what, I would think that operators have more to worry from this news than Skype. I have stopped using Skype for some time now due to many issues I have with it and have moved to Viber for a few months.   If you are a regular reader to this blog then you would have read my recent post complaining about the global roaming rates. When I am travelling abroad, I make sure there is WiFi and use Viber as a substitute for Voice and SMS. In fact I can send MMS and emoticons using Viber which would cost a fortune over cellular otherwise.

Sometimes it feels like the operators are sleepwalking into their own destruction by not innovating enough and fast to be a challenge for these OTT services. Not entirely sure what the solutions are but there are quite a few ideas around to start thinking in that direction. An interesting presentation by Dean Bubley I posted here is a good starting point. Another one from him and Martin Geddes is embedded below, which is quite interesting and intutive.



Enough of my rants, what do you think about this?

2 comments:

Curd Rice Aurora said...

Toll-free data is the way the operators are trying to mitigate this churn and it is happening whether customers like it or not.

If that works out for the telcos or not, is something we have to see. But at the moment, some of them are betting big on it.

Andrew Hall said...

RCSe and Joyn is one way that the operators are trying to bring OTT services back in-house. I think this could work, although they are dragging their feet - smaller startups move faster than big telcos and organisations like the GSMA.

From the billing perspective, I think we will start to see tiered data tariffs slowly entering the market. Although this might be operators 'admitting' they are becoming data pipes. But then, what other outcome is there?