What is the impact of OTT services on traditional telecom services?

In 2019, the size of the global over-the-top market was valued at $56 billion. From 2020 through 2027, growth in that market is expected to hit 18.6\%. This means OTT streaming services revenue will have more than tripled in 10 years (since 2017).

What does OTT mean in telecommunications?

Over-the-top
Over-the-top communications or OTT refers to a class of real-time communications solutions that operate over the Internet. Consumers and business users make use of OTT communications applications and services to collaborate and to reduce communications expenses––especially international calling and roaming fees.

How are OTT and internet service related?

Over The Top (OTT), also sometimes known as Telco-OTT, is a term used to describe when a provider delivers audio, video and other media over an IP network (such as the internet), bypassing the traditional operators network completely.

Is Zoom an OTT?

OTT voice calling, usually called VoIP, capabilities, for instance, as provided by FaceTime, Skype, Viber, WhatsApp, WeChat, and Zoom use open internet communication protocols to replace and sometimes enhance existing operator controlled services offered by mobile phone operators.

What are OTT customers?

OTT (over-the-top) is a means of providing television and film content over the internet at the request and to suit the requirements of the individual consumer. The term itself stands for “over-the-top”, which implies that a content provider is going over the top of existing internet services.

What is OTT digital marketing?

OTT marketing is the delivery of ads through online video streaming. This includes connected TV advertising (or CTV advertising), which runs video ad interruptions, banner ads, sponsored content and more. This is different from traditional TV advertising.

How can network providers compete in the OTT space?

Network providers can also develop their own OTT services to compete. This would allow full control of the service. An operator could develop its own in-house team to develop the services or acquire an existing company to provide a faster route-to-market.

What is the future of Ott in the telecom industry?

OTT players are offering core telco services such as voice or messaging, and the media space is becoming their domain. Tech and Internet companies are also increasingly active in growth areas, such as cloud space and services, competing with telcos for clients and revenue.

How to deal with the rise of OTT applications?

Possibly the most extreme response to the rise of OTT applications would be blocking them altogether. It is a short-term strategy that would certainly damage the OTT services revenue through the network service providers platform, potentially buying time to develop their own competing service.

What is the impact of Ott on service providers?

The obvious impact of OTT applications for a service provider (as mentioned above) are their alternative offerings that will deter existing and potential customers from standard services. Perhaps more worryingly for network providers, there is also another problem that perhaps has even more of an impact: network data congestion.