Mobile operators are coming under increasing threat due to over-the-top (OTT) players, according to the president of Huawei's carrier software and core network business unit, Deng Biao.
Deng maintains that OTT companies are now capturing a growing proportion of revenues that previously went to mobile operators. The Huawei executive stated that a few years ago text messages and ring-back tones were the most important services for China Mobile, but now "evenue is declining," as a result of competition from OTT services, Deng told Total Telecom at the TM Forum Management World in Dublin.
"Operators are not willing to be the dumb pipe;" they want a bigger share of the revenues, but OTT players are too strong, Deng said. Noting that voice revenues are continuing to decline, he warned ″many operators will go bankrupt″ if things do not change.
To combat the problem, Huawei believes its new value-growth solution (VGS) could help operators by optimising and monetising mobile broadband, helping operators to deliver greater bandwidth and better QoS for high-value end-users.
Deng pointed to VGS being deployed with reference customer MegaFon, as well as a number of others, and "many top operators are considering bringing our VGS solution into their network," he added.
- see this Total Telecom article
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