From Resistance to Partnership: Operators shift into monetising OTT

From Resistance to Partnership: Operators shift into monetising OTT image

Fresh data and insights from an independent study revealed how mobile operators are taking the next step towards generating revenue from OTT (Over-the-Top) services

This tyntec-sponsored survey, based on interviews with over 60 mobile operators across global marketplace conducted by independent research company mobilesquared, shows clear evidence that Mobile Network Operators (MNOs) are shifting their mindset in how to stay relevant (and even grow) in the OTT communications landscape.

A shift in mindset. Seeing revenue potential, majority (80%) of mobile operators now believe they can generate revenue from OTT services—and are turning their initial apprehensiveness into opportunity exploitation. The research revealed that 98% of mobile operators will potentially enter into an OTT communications partnership.

Focus on monetization. From the perspective of maturing OTT communications providers, operators’ openness to partnership brings forth even greater opportunity as they are moving towards a revenue generation model—as opposed to just focusing on market capitalization—to prove their commercial viability. The research revealed that the primary expectation of mobile operators for partnering with an OTT service provider was to drive customer loyalty (71% of respondents). Equally important, 34% said it would be to develop an OTT subscription model and/or use as a marketing platform, while the up-sale of content would appeal to 16%.

Uncertainties and complications ahead. Although several monetising opportunities emerged, including charging OTT providers for data and terminating IP traffic onto a mobile network, many of the operators are unsure as to how the contractual agreements with OTT service providers would look like (32%), and believe there are issues around data privacy (53%).

Disclaimer: The views and opinions expressed in this article/press release are those of the authors and do not necessarily reflect the approved policy or position of the GSMA or its subsidiaries.

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