OTT Provides Opportunity for Service Providers to Differentiate in the Mobile Market

Now in the era of Cloud Computing, service providers are in the position to develop OTT content to be delivered to their user database, while leveraging the efficiency, scalability, easy of deployment and flexibility of Cloud based network appliances. This means that instead of relying on other content providers and absorbing the costs associated with additional bandwidth and reliability, they can provide benefits natively within their network.

For example, imagine that you were trying to decide between two phones and associated Service Providers with relatively similar features except one Service Provider also offers a Mobile Office Environment and Data Store providing secure access to your Business from the palm of your hands. That is one example of a Value Service that could be provided by a service provider.

The different approach to handling OTT is definitely a game changer for service providers and Dell OEM has the knowledge, enterprise components, software and services to assist Network Equipment Providers in designing systems to accommodate such changes.

Let me take you through what we have seen over the last several years.

First, what is OTT content?

Rich content such video and audio delivered to your mobile phone, applications such as Youtube, Skype, online email, and other applications that created new paradigms in communications for which service providers are not involved in control or distribution the Telecommunications Industry calls Over-the-top, or OTT.

Evolution of OTT content impacts to service providers

OTT content made its first entry into the mobile market with the introduction of Smartphones. As users enjoyed being able to carry their favorite desktop applications around the adoption rate grew beyond expectations.

Historically even though service providers such as AT&T, Verizon, Vodafone etc… did not own the OTT services they were expected by their subscribers to deliver the best user experience in terms of performance, quality and uptime of the OTT content. For example, if there is a problem with your Youtube video or Facebook app or your Angry Birds game is loading slowly, your first instinct as a consumer is to blame your service provider.

Moving forward, consumed bandwidth for OTT is set to become

a challenge to service providers especially with the next generation of Networks (LTE or 4th generation) being deployed widely. The LTE promise for more bandwidth will result in increased expectations for performance and quality per user for delivered content. The vicious circle completes, but it gets a bit worse….. Most subscribers enjoy plans with fixed fees and unlimited data rates, so service providers aren’t earning extra income from all the additional consumed bandwidth.

Future to differentiate for mobile phone carriers

Service providers own the delivery network and so they have the opportunity to turn the tables on the trend started by OTT providers in which service providers become a pure data transporter. Service providers can establish their brands by delivering value services such as Video-on-Demand, High Quality Video Conferencing, Cloud Based Applications, etc. The Cloud Era allows them to do this very efficient, fast and flexible. By integrating Content Delivery Appliances into the network, user experience can even be lifted beyond today’s standards.

With Dell Data Center Solutions and OEM Solutions, the Network Equipment Providers enjoy a solid partner to assist them in designing for OTT content handling. Dell is by far the largest provider of Hyperscale servers in the world with a huge track record of serving large Data Centers across the globe and Dell OEM Solutions is ready to assist Network Equipment Providers in designing, delivering and supporting Content Delivery Appliances.

To learn more about our Dell Telecommunication capabilities or about designing for OTT services, please fill out our contact form or tweet us at @delloem.

Marcel Moelands

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1 Comments

  1. Interesting take. If ISP’s dont’ adapt to these changes, they risk losing significant revenue streams, while seeing increased demands for bandwidth over their networks w/o really being able to understand what/how/who is consuming it.

    Video conferencing is one way providers could easily guarantee QOS with tiered pricing and data amounts, proving new revenue streams to offset the loss of OTT messaging applications.

    By: Corbin Moore on September 11th, 2012 at 1:24 pm

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