Research & Development

5G: the road to success for telcos and OTTs

Apr 01, 2019 | 122 views

Content, entertainment, media, messaging, VoIP and more. All this is part of the OTT ecosystem that companies have considered the new revenue drivers and springs for the deployment of 4G and 5G technologies.

As cellular technology progresses to take advantage of the improved performance of the Internet, software evolves at the same rate and increasingly demands legacy infrastructure. The OTT stories are one of those cases where technological resources have evolved exponentially in the last decade.

In the last ten years, the technological accessibility gap has been overcome to consumers around the world and in the most diverse spheres of society. Today there are gigantic OTT applications that process messages, voice and video, IoT etc and all work with a simple principle of delivery through free internet.

Surprisingly, the number of OTT consumers quickly exceeded 500 million and the curve continues to rise at an unprecedented rate. So, what is behind it? How do you differ from traditional forms of communication?

The answer is simple: the OTT business modality has turned into a major revolution. For 4G, 5G technologies and applications delivering real-time content of voice, data, and images, as well as delivering personalized consumer experiences, has touched the way people have fun, work, study - live! This movement puts in the same context: content, agility, accessibility, portability, usability and increasingly individualized experiences - composing a complete network of connectivity.

With continuous advancements, today's OTTs are able to create a digital layer on ISP pipes, with endless choices over content consumption and especially entertainment-related, meaning a lot of video traffic. Spectated by 2021, OTT's worldwide revenues will exceed $ 50 billion and video traffic alone will rise more than 75%. This is a conservative estimate based on the OTTs' own capabilities utilizing network bandwidth in "best effort in QoS - Quality of Service."

This accelerated growth in the OTT market is fueled mainly by social networks and the continued use of smart devices in general. Today, entertainment uses a wide variety of content, including audio, video, messaging, and live streaming.

At the same time as Internet traffic increases, some dissatisfactions have greatly frustrated end consumers and among them are: fragmented communication, high subscription rates, poor quality and speed of transmission, information breach, unwanted advertising, interrupted user experience, and others.

TTOs have no control over traffic congestion and quality management of the internet. And economically consumers end up paying more on combined OTT signatures than in comparison to the basic Internet plan.

Infrastructure to provide high-speed data transmission and content warfare are the biggest challenges for the video industry today. With content delivery competition and the sensitive increase in smart devices, it's hard to keep pace with customer demand for ever-changing entertainment and preferences.

The success in the OTT market needs transmission quality experience between devices, extreme reliability, less latency, better speed and ease of access every time. This is where the 5G architecture comes in. It offers a smart and secure digital network mesh with native cloud platforms, analytical tools and structure that enables monetization while efficiently utilizing the entire spectrum.

5G Slicing and Edge computing is a concept that can support agile, quality-oriented software solutions while dealing with byte flow by offering dedicated traffic lanes and all of this can be controlled by the network design established by the company. The benefits of 5G seem almost unbelievable: downloaded movies in seconds, seamless navigation, near-perfect live streaming, secure data access, and more.

It seems that the 4G technology is ready to retransmit cases of use of OTTs that will open doors to new revenues and to telecommunications companies. 5G will revitalize the meaning of "service" to providers and give them much greater opportunities and responsibilities than just "infrastructure and media providers."

5G technology can generate services with higher margins to offset declining revenues and get a fair share of the growth of OTTs. With more personalized and sophisticated content that can drive better engagement, providers will need to take a more proactive approach to delivering better and better user experiences to make this audience more loyal.

Around the world, telecom companies are investing in a consolidated spectrum of content libraries to strengthen their position and to better utilize their own networks with offerings of varied packages.

Telcos OTT services can potentially expand the customer base in remote areas where broadband technologies are still out of reach. Many telecommunications companies are also exploring the idea of teaming up with OTT vendors to add "quality, reliability and security" power to the consumer experience. And, at the same time, offer more sophisticated services and of course a little more expensive. It's time to redefine the Internet for free and add value to revenue.