Video, a Sprint executive said recently, is the killer app for mobile. But that killer app is killing operators, he added, by straining their networks and proving difficult to monetize.
“In order to remain competitive, CSPs are not only seeking ways to hold onto existing broadband service revenue, but are also searching for new strategies to generate additional revenue across the video value chain,” said Debra Osswald, who is research vice president for CSP operations at IDC. “Allot’s solutions equip operators with important new capabilities that enhance the ability to differentiate their video offerings and deliver valuable new ‘digital lifestyle’ services to customers.”
Allot Communications and IDC released a report today on finding value in over-the-top video. Allot works with all of the major telecom operator groups to help operators deal with video traffic — both in terms of managing the traffic, and efforts to better capitalize on it.
According to Jonathon Gordon, AVP of marketing for Allot, the report is a call to action for operators to come up with a comprehensive strategy for managing video — not just in terms of network impacts, but seeking partnership with OTT providers, look at pricing strategies and customer experience, and setting up a framework for innovating around video. Gordon said that video can account for up to 40% or 50% of operators’ network traffic, and mobile has high standards to meet set by other technologies.
“Everybody has a TV. People go to movies. People have a concept of what video should be, and even a five-year-old can be a critic when it comes to video over the Internet,” Gordon said.
He added that “video is just going to get bigger,” both in terms of consumption and with the move toward high-definition video via mobile. “I think the opportunity here is huge, but it requires a kind of shift in the thinking of operators to have a look at where they fit in the whole picture,” he added.
