OTT Trends and Drivers

  • High Smartphone Penetration - Global Smartphone sales volume crossed feature phone sales in August, 2013

  • Increasing data speed, enhanced quality combined with widening Wi-Fi coverage

  • End users adopting popular OTT solutions as economical means to connect with contacts

  • Voice/SMS cannibalization, due to increasing apps usage (Skype, Viber, Whatsapp etc.) that transform traditional services into IP data

  • User habits changing, driven by "Always ON"

  • RCS/Joyn moving slowly. Not following the pace and pick-up of popular OTT solutions

  • Cost of termination dropping. Regulations forcing pricing down especially in the EU

  • High interest in roaming solutions. Removing the bill shock of roaming communication

  • Mobile payment initiatives booming. Opportunity of combined communication and remittance

  • Operators chasing new revenue-boosting streams because of the current revenue-eroding trends prevalent in the industry e.g. Wholesale VoIP, Own IP communication applications, etc

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"Fixed and mobile players have one thing in common: both face growing economic pressure from a variety of sources. Trends in consumer behavior, market activity, and governmental regulation could cost them over 15 percent of their revenue by 2015"

McKinsey & Company