Globally, the telecommunications industry is at an inflection point. With the shift in consumers’ buying behaviour and aggressive competition from Over The Top (OTT) players, carriers need to find innovative solutions to stay relevant.
Carriers are worried by the threat posed by OTT service providers to their core network service. Take WhatsApp as an example. If we compare its features with the standard carrier SMS, we can clearly see why consumers prefer OTT applications. While the increase in OTT players brings some benefits to carriers as it will drive the growth of mobile data services, this growth will not be significant enough to offset the loss in voice and SMS revenues.
Carriers Competing Head-On
To arrest this loss and to compete with OTT service providers, numerous carriers have attempted to develop their very own "pseudo" OTT solution which would be delivered over their own network. But this nullifies OTT’s original benefit. We have seen many carriers limiting their OTT services to their own data subscribers, but have since discontinued these services. Had they been network agnostic, they might have stood a chance.
Turning CPaaS from Competitor to Partner
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Pankaj Gupta[/caption]
The evolution of Communication Platform as a Service (CPaaS) has benefited enterprises greatly and carriers should use it to their own advantage too. Although conventionally CPaaS is viewed as competition to carrier, it need not necessarily be so. Enterprises have already been utilising this disruptive technology to rapidly implement real-time communication (video, voice and messaging) capabilities into their existing applications or business processes with minimum disruption and complexity. With just a set of APIs and SDKs, enterprises can easily add call functionalities into their mobile or native apps. With CPaaS, there is no need for the physical lines and circuits of traditional carrier services. And as it runs on the browser, it can be made available on any device, creating an omni-channel and contextual experience. CPaaS has grown exponentially and will continue to grow with IDC estimating a CAGR of nearly 40%
Innovative carriers can take the lead in changing their business models by leveraging on CPaaS to create new revenue streams, protect their core assets, and improve customer experience and stickiness. The good news is that carriers with their existing infrastructure and large customer base have an inherent advantage over OTT players. If done well, carriers could turn defence to offence against the OTT players by offering carrier-grade, feature-rich communication offerings that bring more value to customers.
How Can Carriers Leverage CPaaS?
One quick way is for carriers to move into this market is to partner and collaborate with CPaaS players. These partnerships will allow carriers to share the risk while rapidly launching CPaaS innovations for their customers. Here are some ways carriers can leverage CPaaS to monetise their established technologies in new ways, create new revenue streams and increase market share.
Option 1 : API Marketplace
Carriers can conveniently deliver real-time communication capabilities through an API store or marketplace. By offering video, voice and messaging services APIs, enterprises and developers can easily access carrier-grade, low-code, real-time communication capabilities. A few leading carriers such as AT&T and KPN have already launched an API marketplace. This represents a growing trend in carriers turning to CPaaS to grow their business and generate new revenue streams.
