Subject:::Can Service Providers Compete with OTT Messaging? - Next-Gen Service Provider
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October 28, 2013

Can Service Providers Compete with OTT Messaging?

About 7 percent of surveyed U.S. users prefer social messaging to carrier-provided messaging, while 13 percent of respondents in the United Kingdom prefer over-the-top (OTT), third-party messaging apps. For some observers, that will suggest that carriers still have an opportunity to enhance carrier messaging and retain user allegiance.

The issue, perhaps, is just how much operators can afford to invest, and how much better the experience has to become, to wean users off “free or cheap to use” alternatives, especially when the over the top alternatives have obtained the necessary network effects and scale.

Of respondents who prefer to communicate using social messaging applications, the majority in both the U.S. market (43 percent) and U.K. market (39 percent) say they prefer them because they have more enhanced features.

But users who prefer social or over-the-top messaging also prefer the lower costs. Some 34 percent of respondents in the U.S. and U.K. indicated they prefer social messaging applications because they are free or cheaper...Read More

Edited by Alisen Downey

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