The Competition in Voice Service Market between Network Operators and OTT Service Providers
Keywords:
Over-the-Top (OTT) service provision, Competition in the telecommunication sector, Telecommunication network operators, GovernanceAbstract
This article studies the compatibility between traditional network services and OTT (Over-the-top) services, and analyzes the marketing competition between traditional network operators and OTT service providers. The research analyzed the data on number of users, annual turnover, volume of uses, and promotions of mobile phone services. From both qualitative and quantitative studies, it was found that the OTT’s promotions and surrounding factors motivated more consumers toward OTT services. Statistical evidence indicated fierce competitions among traditional network operators themselves. Although popularity of OTT services corresponded to rising operator’s revenue from provision of mobile internet access, it was partially offset by declining voice revenue. Overall profit seemed to be either constant or declining. Lastly, some possible options to regulate OTT were explored, where cost sharing scheme seemed to be a practical option.
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