Thursday, March 22, 2012

How and Why Service Providers Should Embrace "Over the Top" Communication Apps

Communications service providers need to decide how they want to respond to the over-the-top voice and messaging apps, and they need to act on that decision before subscribers transfer their loyalty, a new white paper by Metaswitch Networks argues.


“Operators can either stand back and let the OTTs take the lead, becoming a pipeline for OTT services, or they can respond by building their own multi-device communication platform; adding VoIP calling to handsets and extending voice, video, messaging and file sharing services to tablets and PCs,” the white paper argues


One way of looking at the business of "over the top" apps is simply that service providers have been disgruntled about such apps because huge new revenue streams and businesses have been built using broadband access. But the primary objection is not the "you use my pipes" angle, but the "somebody else is building those businesses and reaping the benefits" reality.


In other words, "over the top" is a problem only when a service provider does not participate meaningfully in the revenue stream. That doesn't mean the biggest part of a service providers business necessarily can shift to over the top. But some portion, and perhaps a strategically-important portion, can do so. 

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