The impact of Over The Top service providers on the Global Mobile Telecom Industry: A quantified analysis and recommendations for recovery

TL;DR

This paper analyzes how Over The Top (OTT) service providers are impacting the global mobile telecom industry, highlighting revenue shifts and suggesting strategic responses for telecom operators.

Contribution

It provides a quantified analysis of OTT effects on telecom revenues and offers recommendations for industry recovery strategies.

Findings

OTT services are replacing traditional revenue streams like voice and SMS.

Mobile data traffic is increasing significantly due to OTT usage.

Telecom operators need to adapt strategies to sustain revenue.

Abstract

Telecom industry is significantly evolving all over the globe than ever. Mobile users number is increasing remarkably. Telecom operators are investing to get more users connected and to improve user experience, however, they are facing various challenges. Decrease of main revenue streams of voice calls, SMS (Short Message Service) and LDC (Long distance calls) with a significant increase in data traffic. In contrary, with free cost, OTT (Over the top) providers such as WhatsApp and Facebook communication services rendered over networks that built and owned by MNOs. Recently, OTT services gradually substituting the traditional MNOs` services and became ubiquitous with the help of the underlying data services provided by MNOs. The OTTs` services massive penetration into telecom industry is driving the MNOs to reconsider their strategies and revenue sources.