OTT sector may experience tough road ahead post raised concern by Telco’s

The dynamic shift of telecom services model in recent years showed many interesting delivery mechanism. The OnNet product hosting got the back seat and OffNet based product got an inroad through the higher adoption of applications. The agnostic application hubs played a crucial role in enhancing subscriber options as per the geographies. The adoption of high speed data network and subsequent device revolution led innovative organization to offer OTT services to subscriber. The device OEM openly supported OTT players by integrating their widget to be differentiator in the market place. The leading service provider across geographies raised their concern regarding loss of revenue due to OTT players and also started raising their expectation on different forums. The service providers are raising concern that OTT players service such as messaging are consuming huge bandwidth for little revenue. It is also impacting their messaging service revenue. Their argument lies on the investment part. Without investing on infrastructure, OTT players are only paying for the bandwidth usages and hurting the ecosystem players of service providers. The common concern raised by world leading service providers is going to force regulatory to look at it. The innovative OTT messaging services attracted millions user as it is without charge. Billions of revenue generating messages for service providers is lost to OTT players. In fact, the volume of messages and video traffic from OTT to service providers are increasing on daily basis. Telecom service providers assumed that any form of messaging and any other service traffic which is landing on their registered subscriber devices and travels through their network must carry price point in case information origination is from OffNet service providers. The service providers must get the revenue for the delivered message instead of getting revenue from network bandwidth utilization. In my point of view, In India, the OTT based messaging the data centric service using service provider bandwidth should be brought into regulators body attention. The loss of revenue is not only for service provider but also for the government exchequers as government gets around 35% of the total generated revenue in the form of revenue sharing and taxation. The recent rise in wireless security threat with the higher adoption of data centric device also raises concern of accountability. The service provider’s networks are used for transit and is forcing service provider to install additional infrastructure and resource to make sure of traffic free from any vulnerability. I strongly support service provider concern and believe that sooner than later action from regulatory body is warranted to set the accountability as well as responsibility factor and also safeguard revenue leakage for both service provider and government.

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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