How to Recapture Value from Mobile OTT Services
Boston,
MA - April 10, 2012 – Mobile operators may finally
have a weapon in the battle for Over the Top (OTT) service revenues, according
to Strategy Analytics’ Mobile Broadband Opportunities (MBO) service report, “Mobile
Content Delivery Networks Reduce Media Delivery Costs and Create OTT Revenue
Opportunity.”
Content Delivery Networks (CDNs) will become a significant
revenue opportunity for mobile broadband operators as they offer:
·
`Multi-screen'
delivery of video to smartphones, tablets, laptops and televisions;
·
Premium
content services with differentiated Quality of Service (QoS); and
·
Value-based
response to the dominance of OTT content providers.
“The focus on multi-screen video
delivery could presage a major operator opportunity for recapturing value from
OTT content providers,” commented Susan Welsh de Grimaldo, Director Mobile
Broadband Opportunities. “CDNs provide paths
for mobile operators to be both the ‘Best Bit Pipe’ for blind OTT services and
the provider of value added ‘traffic and service aware’ CDN services. Both leverage the operator's substantial
network expertise in order to establish a competitive advantage.”
“The mobile CDN market
is likely to exhibit a positive `network effect' as additional users join to send
and receive high quality media content. Premium application and market-focused CDNs
could increase network value exponentially,” emphasized Sue Rudd, Director
Service Provider Analysis. This report identifies some of the early operators
who are already leveraging CDNs for multi-screen and mobile broadband
applications - AT&T, BT, Deutsche Telekom, KDDI, Orange, SFR, Talk Talk, Telecom
Italia, Telkomsel and TP.
Recently, the explosion of mobile broadband traffic has begun
to refocus the CDN industry around mobile services and led to the creation of a
new platform licensing model from leading CDN technology vendors – Akamai /
Ericsson, Alcatel Lucent / Velocix, Edgecast, Jet-stream and Limelight – who
are responding to pressure from service providers that like to own and
sometimes operate their own CDN platforms. Technology vendors are also offering
‘federation ready’ platforms which have enabled several bi-lateral and vertical
market peering relationships.
.
About Strategy Analytics
Strategy Analytics, Inc. provides timely and
actionablemarket intelligence focused on opportunities and disruptive
forces in the areas of Mobile Broadband, Digital Media, Wireless
Networking, Digital Connected Home and Virtual
Worlds. Strategy Analytics works with operators and vendors around
the world and is headquartered in Boston, MA, with offices in the UK, France,
Germany, Japan, S. Korea and China. For more information, please visit
http://www.strategyanalytics.com/