The battle taking place in the rich communications space is an interesting one. While many of the activities taking place in the background have been going on for some time, we’re just now seeing key changes as operators fight to keep their share from being absorbed by OTT providers. This is especially true as the VoIP switch gains in appeal.
The idea that operators are threatened by OTT providers is not new, but it is gaining momentum. Consumers are seeking the ultimate experience and starting to shun the locked in approach to communications plans. This adverse affinity is carrying over into the corporate sector, one where big providers once had the upper hand.
Does this mean the end of the operator or merely a shift in business strategy?
This really is the key question being asked in the industry. We have seen the battle rage, especially with the first introduction of VoIP services in an environment that was just starting to get connected. The proliferation of Skype (News - Alert) excited users and enraged providers. Blocking the service from their networks, the aim was to protect voice revenues. Unfortunately, the strategy didn’t stick.
The reality is the VoIP switch and VoIP connections in general offer benefits that are more powerful than the traditional approach to communications. Providers slowly started to understand that, or at least recognized that mobile VoIP in the form of apps accessed through smartphones were negating their strategies for blocking such a service. At that point a decision had to be made – get in the game or fight until the death.
Perhaps it was a glimpse of this death that inspired more than a few operators to decide it was time to get in the game. It may also be the fact that they recognized a key value they bring to the table – core communications. Anyone with a mobile phone can access core communication services from operators. This is a key advantage operators should be capitalizing on to profit in this new market. It also points to the need to enrich their communications services so the user experience matches – or exceeds – that of the OTT competition.
What does this mean? For operators to be successful here, they need to develop a strategy for attack. They may want to improve messaging, incorporate services for key consumer segments or launch new channels. But doing everything at once and without a clear purpose could be a disaster. OTT services are not going away and a failure to deliver a similar experience can quickly render an operator’s value in the market as null.
Expanding on the core communications and leveraging the value of the network in place, however, is where the operator can shine. The VoIP switch will continue to grow in demand and consumers will continue to want better and more innovative experiences. Focusing on how to meet these demands with solutions that leverage core capabilities is the key to long-term revenue potential.
Edited by Alisen Downey