Eric Van Haetsdaele, Director Global Solution Marketing at Astellia

Eric Van Haetsdaele, Director Global Solution Marketing at Astellia

Few operators have successfully launched their own applications to compete with OTTs. Telefonica Digital for instance took down its Tu Me app, which was supposed to be a retort to third-party messaging apps like WhatsApp, Skype and Viber. Even the GSMA-based Joyn standard did not live up to expectations and hasn’t delivered yet on its promises. It is becoming extremely hard to out-innovate OTT players. Therefore, the only way for operators to avoid revenue drain is to partner with OTT providers and develop attractive tariff plans to increase value for money.

Through partnering with OTT players such as Deezer, Spotify, Netflix, Gameloft, Canal Play, and others, operators can differentiate themselves from the competition and deliver a premium service to their subscribers. These attractive offers can motivate for instance high-value customers (HVC) to upgrade their tariff plans to get free access to OTTs, which they are used paying for 10€/month. These new tariff plans enables the ARPU to be increased and the share of wallet of some subscribers.

These OTT/Operator partnerships are generally based on revenue sharing models where operators are paying a significant monthly fee for each subscriber registered to the OTT service. However, many operators confirmed to Astellia that they are paying large amounts to OTTs without really knowing or understanding their subscribers’ behavior and effective usage of OTT services.

In some cases, since it is a free service added to their tariff plans, subscribers are testing the OTT service just once and are not necessarily using the service afterwards. However, the operator starts paying the monthly fee from the moment of first usage, regardless of what happens next. In other cases, subscribers are intensively using the OTT services offered in their tariff plan but the operator doesn’t know who, for how long, when, where etc. and generally the OTT player is not divulging this information for free.

That is where Astellia comes in. Astellia can provide the number of hourly, daily, weekly, monthly connections and duration of each subscriber’s OTT session (belonging to a particular segment that the marketing team wishes to monitor). Nova Usage Analytics can also provide the Quality of Service of each OTT application to make sure that HVC’s have a good and consistent experience with the service – important as the service is not independent of, but embedded in, the tariff plan.

So, operators’ marketing teams can benefit from Astellia’s solution to understand the portion of subscribers registered but never using the OTT service. This information provides key arguments to be able to change/improve the revenue sharing agreement with OTT partners.  They can also use the solution to see which subscribers are frequently using the OTT service, meaning they are happy using it. So there is no need to invest in expensive retention programs for these subscribers. It may even be interesting to look at the top 10 applications these subscribers are using to identify other potential OTT partners to be included in upcoming upsell campaigns.

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