VIDEO

As telecom operators around the world face slowing revenue growth in their core mobile and fixed markets, they are looking for opportunities in adjacent markets. Fortunately, the consumption of digital content–particularly video–is growing in most mature markets around the globe. Thus, a growing number of telecoms operators are entering the content space. As video makes up more than 60% of mobile data traffic, mobile operators can take advantage of this growth to drive user retention, higher average revenue per use (ARPU), and data revenues.

Telecom operators have aimed to fulfill the promise of mobile video since the launch of 3G wireless technologies, and are now seeing mainstream consumer appeal due to the rise of smartphones and 4G-enabled mobile video services. Messaging app video strategies go beyond content. Almost all major app platforms provide video calling/messaging as standard and are looking towards group video, live video broadcast, and 360 video.

The rise of data consumption is a positive sign for telecom operators in terms of revenue, however, mobile video data growth also presents a challenge to telecom operators regarding how they manage traffic and capacity on their networks. There is an opportunity to monetize increased video consumption through careful strategy.

Telecom operators must actively develop and invest in video services. They can partner with OTT service providers to drive data and subscription growth, despite competitive challenges. In short, telecom operator strategies must consider video communications, virtual reality (VR) and augmented reality (AR), and 4K video as we move to 5G.

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