Over-the-top (OTT) communications represents the largest threat to mobile operator revenues in the last 10 years. Today, VoIP is capturing an increasing proportion of mobile voice minutes, but in terms of value it is still worth less than 0.5% of overall voice revenues. With regards to messaging, ARCchart expects that instant messages will exceed SMS volumes by 2014 and continue growing rapidly thereafter, accounting for 65% of all message traffic pushed over mobile networks by 2016.
This report examines the implications of widespread adoption of mobile over-the-top IP communications for mobile operators, handset vendors, and the OTT providers themselves, looking at how OTT players have gained a foothold at the expense of the mobile network operators and analysing how the various ecosystem stakeholders are dealing with the new industry dynamics.
Topics of coverage include:
- Historical view of OTT
- The evolving mobile OTT landscape
- Risks to the OTT business model
- Case studies of voice and SMS cannibalisation
- Assessment of current and impending telecoms regulation
- Factors fuelling take-up of OTT services
- Value chain analysis
- Profiles of key OTT players
- Operator strengths and weaknesses
- Assessment of operator strategies – operator decision matrix
- Rich Communications Suite overview
- Market size and forecasts
Companies and organisations mentioned, discussed or reviewed include:
Korean Comms. Commission
Answers and opinions are provided with respect to the following
- How much revenue is currently being lost by operators to OTT services?
- Which revenue models are proving effective for OTT providers?
- How might upcoming ITU regulation benefit network operators?
- What proportion of messages will go over-the-top by 2016?
- How much circuit-switched voice will be lost to mobile VoIP?
- Under what circumstances is it better for operators to partner with OTT providers?
- Which handset OEMs have committed to RCS?
- Which regional markets will see the largest number of mobile VoIP users?
- How does increasing smartphone penetration correlate with SMS erosion?
- By 2016, what portion of voice traffic will be mobile VoIP?
- How much do revenues from voice and messaging currently contribute to operator profits?
- Which regional markets will have the greater number of RCS users?