The Threat of OTT Players
The Threat of OTT Players
Almossawi (2012) give that strategies to avert the situation include the telecom
industry engaging in rebranding. The telecom companies need to rebrand their products such
that they provide products that are competitive to those of the players. In 2010, Everything
THE THREAT OF OTT PLAYERS 2
Everywhere rebranded itself EE to maintain its competitive advantageous in the British
market. Another strategy related to the above one is to adapt to the changing customer
preferences for current services (Jho, 2013). For instance, bundling has been used by telecom
industry to cut the fierce competition from the players. This strategy involves employing new
mobile tariffs that are speedy, plentiful, and has SMS that have no extra costs. For instance,
the mobile operators are able to provide pay-TV bundles and fixed broadband bundles.
Mobile operators are sure that when they give their customer bundling services, they
considers it cheaper and can hardly change like those with single services Another strategy to
avert the situation is to collaborate with the OTT players. For instance, Vodafone
collaborated by YouTube to raise revenues from sporting events. This was observed in 2010
world cup in Brazil. Almossawi (2012) argues that telecom companies merging with OTT
players as third parties to cut cost of production. For example, Orange merged with T-Mobile
to form Everything Everywhere to cut down operational costs. Leah (2014) gives that the best
strategy to deal with competition from OTT players is by reviving the previous relationship
between the companies and customers (Kreutzer & Land 2014). The industry has to confirm
that it can still give the services it used to give before the OTT players invaded the telecom
market. For instance, in 2013, Vodafone instituted a campaign to remind its customers that
its services have been added by announcing offers and bonuses.
References
THE THREAT OF OTT PLAYERS 3
ALMOSSAWI, M.M., (2012). Customer Satisfaction In The Mobile Telecom Industry In
Bahrain: Antecedents And Consequences. International Journal Of Marketing
Studies, 4(6), Pp. 139-156.
JHO, W. (2013). Building Telecom Markets: Evolution Of Governance In The Korean Mobile
Telecommunication Market.
LEAH, M. (2014). The EU Approach To Net Neutrality: Network Operators And Over-The-
Top Players, Friends Or Foes. Computer Law & Security Review, 30(5), 508-520.
KREUTZER, R., & LAND, K.-H. (2014). Digital Darwinism: Branding And Business
Models In Jeopardy.
SHEEHAN, M. (2010). Why Is Ramsey Pricing: The Case Of Telecommunications
Regulation. Journal Of Economic Issues (Association For Evolutionary Economics).
Vol. 25(1), P21-32
