An overview of OTT (Over The Top) industry & dynamics from a Telco perspective. History of disruptions, the mobile landscape (why we got here), asymmetric business models, OTT^2 the new OTT squared mobile messaging ecosystems, internet trends and other useful data to understand how the battle between alligators and bears is playing out.

1. Telco & Over The Top
OTT the New Kids on The Block
Who wins a fight between an alligator and a bear?
References:
Telco
Innova,on
Toolbox
–
Ericsson/VisionMobile
Internet
Trends
2015
–
KPCB
Mary
Meeker
Asymmetric
Business
Models
–
VisionMobile
Telco
–
OTT
strategies
–
Ovum
OTT
report
–
Detecon
Consul,ng
Mobile
MegaTrends
2014
-­‐
VisionMobile
@efernandez

2. A timeline
of disruptions

4. A change of
paradigms

6. Shifts in
value chain
Control vs Profit

8. Telco vs OTT
The prisoner’s
dilemma

10. Telco Prisoner’s Dilemma
VAS
rev,
billing
&
subs
share
Telco
A
COMPETE
Telco
A
SHARE
Telco
B
COMPETE
B
small
wins
A
Small
wins
B
wins
all
A
loses
all
Telco
B
SHARE
B
loses
all
A
wins
all
B
shared
wins
A
shared
wins
Today:
Delta
between
small
wins
&
shared
wins
goes
to
OTT
players
(Telcos
lose
to
OTT)

11. A closer look
at OTT
industry

16. Disruptors
create their
own habitats
(a.k.a ecosystems)

18. Android strategy:
Get eyes
to ads
Remove-Everything-in-Between

20. Apple strategy:
Best Mobile Experience
Better Apps
To sell Hardware

22. Greater incentives
for developers
=
more & better
apps
=
higher user
engagement &
stronger
ecosystem
=
(value capture
strategy)

23. A Duopoly:
iOS > 90% of Value
Android > 90% of Volume

26. OTT ^2:
Mobile Messaging
New ecosystems
on top.

31. OTT ^2:
Mobile Messaging
Free lunch of
IM + VoIP
Money is on e-commerce

37. OTT ^2:
Like OTT^1,
powered by
asymmetric
business models

40. OTT^2
i.e WeChat vs Telco

43. OTT:
Openness &
Interoperability
give scale

45. Telco – OTT
Strategies

46. OTT response strategy

48. The real cost of doing nothing

49. OTT & Telco
Partnering

50. SoftBank customers will be able to sign up for
Netflix through SoftBank's shops, website and call
centers, as well as through major electronics
retailers, Netflix said
SoftBank will begin pre-installing the Netflix app on
its smartphones for sale after October 2015.
Customers of Softbank will be able to sign up for
Netflix without having to fill out any payment
information. The Netflix fee will be added to users'
monthly bill that they receive from SoftBank.

51. Internet Trends:
Understanding
OTT habitats

52. Internet
penetra,on

54. Evolu,on
of
Content
Discovery

55. The Opportunity in the Enterprise
space
Internet
has
not
yet
penetrated
key
corporate
sectors.
This
is
an
area
of
opportunity
in
the
Short
term
for
telco
players
willing
to
Go
the
extra
mile
and
enable
digital
Transforma,on
in
these
ver,cals.
*Ovum

56. Global
Internet
Data
Traffic
growth
is
strong
YoY
at
21%
driven
by
mobile
&
video

67. Invisible
Threads

68. Telco
–
OTT
Partnerships

70. Telco & Over The Top:
OTT: the New Kids on The Block
Who wins a fight
between
an alligator and a bear?
References:
Telco
Innova,on
Toolbox
–
Ericsson/VisionMobile
Internet
Trends
2015
–
KPCB
Mary
Meeker
Asymmetric
Business
Models
–
VisionMobile
Telco
–
OTT
strategies
–
Ovum
OTT
report
–
Detecon
Consul,ng
Mobile
MegaTrends
2014
-­‐
VisionMobile
@efernandez

71. Acknowledgements:
• Telefonica
Global
Solu,ons,
Wholesale
Division
• Boardsfera:
Alvaro
Plaza,
CEO
• C@SI
Club
de
@migos
de
la
Sociedad
de
la
Informacion
@efernandez