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Over-the-top (OTT) content providers have reshaped how people use mobile phones. Messaging and calling apps such as Facebook, WhatsApp, Viber and Skype now dominate communications, and new OTT services continue to appear rapidly. This shift has eroded traditional operators’ revenues and forced communications service providers (CSPs) to rethink how they deliver services to compete with these digital disruptors. Industry research has warned that OTT providers expect substantial revenue growth in the coming years, placing additional pressure on mobile operators to adapt.
Recent research by Tecnotree among global operators shows the industry recognizes the need to close the gap with OTT competitors. The study found that 75% of respondents observed an increase in average revenue per user (ARPU) tied to digital services over the past year. This indicates that digital offerings can boost revenue when operators successfully monetize them.
Demand for digital services is rising: 69% of operators surveyed anticipate growth in digital usage from customers traveling to Europe. To capture that opportunity, operators must redesign their service portfolios so that more data and services remain within their networks, and they must roll out new offerings faster to avoid falling behind agile OTT rivals. The research highlights a speed differential: 89% of respondents believe OTT providers can bring new products to market within one to six months, while 30% think CSPs typically take up to a year to launch comparable services.
A major obstacle to faster innovation is the state of Business and Operational Support Systems (BSS/OSS). Many operators struggle to update legacy systems quickly and efficiently, which has helped OTT players capture large market segments. According to the study, around half of operators need to modernize their systems, and nearly four in five require fully integrated billing capabilities as part of their digital product suites. Without these upgrades, CSPs will find it difficult to offer the bundled, flexible digital services customers expect.
Operators are taking concrete steps to meet these challenges. Some have formed alliances to accelerate delivery of digital content to consumers, while others pursue partnerships with established media brands. For example, EE partnered with MTV to launch the TRAX music service on pay-as-you-go plans, and AT&T integrated its DirecTV offering as an OTT service providing live and on-demand programming. These initiatives show how CSPs can combine distribution reach with content partnerships to deliver value.
Beyond partnerships and bundles, operators must build infrastructure that anticipates uncertainty. Emerging technologies such as the Internet of Things (IoT) bring a wide range of potential services and business models, so flexibility and agility in OSS/BSS are essential. Modern, modular support systems enable faster service creation, streamlined billing, and rapid scaling—capabilities operators need to respond to shifting market demands and to capture revenue opportunities created by growing digital usage.
In summary, the rise of OTT services has forced CSPs to evolve. Successful operators will be those that modernize legacy systems, embrace partnerships that expand their digital portfolios, and design OSS/BSS architectures that enable rapid product launches and adaptable service delivery. By doing so, they can retain more traffic and revenue within their networks while competing effectively in a fast-moving digital marketplace.