Communications Service Providers are reaching the tail end of an era of unprecedented profits driven by mobile voice and messaging revenues. Those days are over.
The strategic dynamics of the market are in the middle of a paradigm shift where communications are increasingly data centric – VOIP, M2M messaging, social messaging, file sharing etc. There is a power struggle between telecom companies, carriers, and service providers on one side and OTT (over the top) vendors (Apple, Microsoft, Google, Skype, WhatsApp) on the other side for control of these new forms of communication.
The question for service providers is straightforward – do they keep watching OTT vendors take over the market, be content with providing access services, and continue seeing a downtrend in APRUs; or do they proactively leverage their strategic strength and claim their stake in the OTT market?