What is The OTT (Over The Top) Business In The Network Communication Industry?

- Mar 29, 2019-

What is The OTT (Over The Top) Business In The Network Communication Industry?


OTT is an abbreviation of “Over The Top”. It is a very popular vocabulary in the communication industry. This vocabulary comes from sports such as basketball. It means “over the top pass” and refers to the basketball players in their heads. Transfer back and forth to reach the destination. That is, Internet companies go beyond operators to develop various video and data service services based on open Internet, emphasizing the independence of services from physical networks. Global telecom operators are suffering.

What is the OTT(Over The Top) business

OTT refers to Internet companies moving beyond the operators to develop various video and data services based on the open Internet. Globally, operators around the world have regarded OTT, such as Skype, as the number one enemy, because Skype leases bandwidth at a very cheap price from telecom operators, and then uses the VoIP monthly subscription package to make money, but the voice and video for telecom operators. The business has had a huge impact. This has caused many operators around the world to go to the government to suspend OTT services such as Skype, and demanded that they be blocked. "If you know that the OTT service is used to steal the services of telecom operators, then no one is obligated to provide ammunition to their enemies." .

How much impact does the OTT business have on telecom operators? According to Arthur D. Little, 25% of current international call minutes are done by Skype. Another market research firm, Ovum, predicts that global operator voice revenues (both fixed and mobile) will fall from a compound annual growth rate of -2.4% from 2012 to 2020, from $970.4 billion in 2012 to OTT. 799 million US dollars in 2020. Some organizations have estimated that the impact of OTT voice applications such as Skype on mobile operators' voice revenue is tens of billions of dollars per year. That is to say, Skype generates billions of dollars per year, but the loss of telecom operators is ten times. the above. Therefore, the OTT business has a huge impact on the future of telecom operators.


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