Gartner Research

Market Trends: Mobile CSPs' Strategic Initiatives to Address OTT Challenges in China

Published: 20 December 2013

ID: G00255319

Analyst(s): Jane Zhang, Rishi Tejpal

Summary

Over-the-top service providers are challenging communications service providers in China mainly through their IP communications apps. CSP strategists should consider alternative collaborative approaches discussed in this document to address the impact.

Table Of Contents

Introduction

Market Trend

  • Market Structure Trend

Market Trend

  • The Rising Threat of OTT Players
    • The Declining Voice and Messaging Revenue
    • The Unbalanced Data Usage and Revenue
    • The Freemium Pricing of OTT Services
  • CSPs' OTT Approach Changing From Full Competitive to Selective Collaborative
    • China Unicom Led the Change to a Collaborative Approach Toward OTT IM Service and Is Promising to Be a Significant Market Challenger
    • China Telecom Is Following the Collaborative Approach to Address the Growing Challenge From OTT IM Apps
    • China Mobile Is Continuing its Competitive Strategy Against OTT Service Providers
  • The Upcoming 4G Era Will See More Competition; Cooperation Among CSPs and OTT Players Is Crucial
    • China's 4G Licensing Is the Key Catalyst of Further OTT Partnerships
    • CSPs Are Building Big Data Analytics Capability to Enable Smart Pipe Strategy

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