The impact of Over The Top service providers on the Global Mobile Telecom Industry: A quantified analysis and recommendations for recovery

Abstract

Telecom industry is significantly evolving all over the globe than ever. Mobile users’ number is increasing remarkably. Telecom operators are investing to get more users connected and to improve user experience, however, they are facing various challenges. Decrease of main revenue streams of voice calls, SMS (Short Message Service) and LDC (Long distance calls) with a significant increase in data traffic. In contrary, with free cost, OTT (Over the top) providers such as WhatsApp and Facebook communication services rendered over networks that built and owned by MNOs. Recently, OTT services gradually substituting the traditional MNOs' services and became ubiquitous with the help of the underlying data services provided by MNOs. The OTTs' services massive penetration into telecom industry is driving the MNOs to reconsider their strategies and revenue sources.