New Research from Ovum Analyzes the Impact of OTT Applications on Network Operators and Suggests Practices to Increase Profitability and Competitiveness
Whitepaper Highlights Advanced Data Analytics as a Path to Improved Subscriber Experience, Reduced Churn, New Revenue Opportunities and Cost Optimization
Redwood City, CA – October 17, 2012 – A new, 25-page whitepaper authored by independent market analyst Ovum focuses on the impact of Over the Top (OTT) applications on network operators, with particular focus on TV and video services. OTT alternatives are proliferating and having a disruptive impact on operator networks and their pay TV offerings. The paper focuses on multiple ways that operators are countering the challenge and what further can be done. One of the primary methods highlighted is better use of advanced data mining tools and practices.
Ovum’s research was co-lead by Eden Zoller and Jonathan Doran, both leading analysts in the telecom sector with a specialized focus on OTT applications and consumer trends. Jonathan Doran will be leading a webinar on October 23rd to present the findings.
“The OTT landscape is expanding rapidly, and this is having a profound impact on network operators especially in the area of TV and video services, which are particularly contributing to the revenue squeeze felt by most operators,” said Jonathan Doran, Principal Analyst with Ovum. “Consumer appetite for video will continue to increase, which means operators will need to continue investment in network upgrades to handle the increased traffic at a time when broadband services are becoming commoditized.”
According to Ovum, both free and paid offerings from OTT players are improving in range, quality and user experience, and this is making it more difficult for pay-TV operators to attract and retain customers.
“In order to remain competitive, operators must exceed the levels of choice, flexibility, and personalization offered by OTT players,” said Eden Zoller, Principal Analyst with Ovum. “An important step towards this is to responsibly leverage customer data insights that can be used for service personalization and more sophisticated approaches to packaging and advertising”.
These ideas are discussed further in a section of the paper called Turn Data Assets into Revenue, which illuminates the primary benefits of data analytics, which are in summary: an improved user experience, new revenue opportunities and infrastructure and cost optimization.
“In the context of the OTT challenge and beyond, we view DNS data as the new secret weapon for Network Operators to create a differentiated subscriber experience,” said Craig Sprosts, vice president of platforms and applications at Nominum™. “DNS data contains significant amounts of information regarding subscriber needs, but historically it has been difficult and cost prohibitive to log and generate actionable insights. Nominum’s recent launch of the N2 Platform and the IDEAL ecosystem of application providers has changed that through an integrated approach for network operators to leverage DNS data for benefits such as reducing churn and gaining new revenue streams through personalized service offerings.
Nominum is the worldwide leading provider of integrated subscriber, network and security solutions for network operators. Nominum is the provider of the N2 Platform that leverages over a trillion DNS queries daily and enables the rapid development and seamless integration of applications that leverage DNS data. These applications are generated by the Nominum IDEAL™ ecosystem, an open ecosystem of application providers. The combined value of the N2 Platform and the IDEAL ecosystem provides network operators with the ability to deliver a differentiated subscriber experience with cost efficiency and agility. Nominum is a global organization headquartered in Redwood City, CA.
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