Carrier Strategies: Key Learnings from OTTs
Carriers can learn a lot from looking at the business models of their more agile competitors. OTTs, for example, make a virtue of owning the minimum amount of fixed assets they can get away with. Their priority instead is on reaching out to the customer with their application by the speediest and most effective means possible. Outsourcing is the starting point for all of their connectivity decisions.
The modus operandi for OTTs and other disruptive players is to use an outsourcing relationship to connect them with as many service providers as possible, reducing their time to market in a space where product lifecycles are short.
Their strategy is to buy networking resources with ease, and be able to turn them up or down in the most flexible way possible. In a challenging and very competitive market they know they need to be able to adjust very easily or get lost in the mix.
How can carriers emulate this? How can they compete with a model this lean?
One step forward is to adopt an eCommerce approach, using a proven eCommerce engine to streamline the sales process. eCommerce is a way to innovate by bringing efficiency to the market, helping an operator business to take off.
Another way to create efficiency is through the use of a central network exchange hub, one that is neutral but connectivity-rich. New ways of interconnecting represent fresh ways of thinking and are a vital step away from a legacy approach. A hub can translate different technology layers into new generation alternatives – SDH to Ethernet, TDM to IP.
Combined with outsourcing maintenance and support of infrastructure, such a model becomes a major differentiator in service delivery, enabling operators to bring services to market faster and to realise revenues from them as early as possible.