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The Future of Communication Services: The Perspectives for Telcos and Internet Players

  • ID: 4456251
  • Report
  • January 2018
  • Region: Global
  • 62 pages
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This report provides an in-depth analysis of the OTT communications market, both through figures and forecasts of market value (global, EU28, APAC and US), and through strategic analyses of the major players concerned. The VoIP market (e.g., Microsoft Skype), the IP messaging market (e.g., WhatsApp), and a portion of the social networking advertising market (e.g., Facebook) makes up the consumer OTT communications market.

The dynamics of each of these market segments are examined as well. The various business models that have appeared, the platform strategies of different types of players, and the trends of acquisitions in the market, are also analysed.

One of the key analyses in this report is the comparison with the telco communications market. The myth of ‘OTTs taking away telco revenues’ is scrutinised, together with the effectiveness of the responses available to telcos, as well as the future path towards rich communication services.

Main players mentioned in the report:
OTT players: Google, Facebook, Microsoft, Skype, WhatsApp, WeChat, Instagram, Snap.
Telcos: Orange, Telefonica, Deutsche Telekom, Vodafone.

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1. Executive Summary 

2. Methodology & Main Concepts 
2.1. General Methodology of the Reports 
2.2. Main Concepts 
2.2.1. VoIP (including Video over IP) 
2.2.2. IP Messaging
2.2.3. Social Networks
2.2.4. Web Real-time Communication (WebRTC) 
2.2.5. Business Models 

3. Communication Markets 
3.1. Overview 
3.2. VoIP 
3.2.1. Market Size 
3.2.2. Market Structure / Ecosystem 
3.3. IP Messaging 
3.3.1. Market Size 
3.3.2. Market Structure / Ecosystem 
3.4. Social Networks 
3.4.1. Market Size 
3.4.2. Market Structure / Ecosystem 

4. OTT Player Strategies 
4.1. Overview 
4.1.1. Comparing the players 
4.1.2. Aggregation of communication services by OTTs 
4.2. Google 
4.2.1. The Complete Package by Google
4.2.2. Rich Communication Services (RCS) 
4.2.3. Strategy 
4.3. Facebook 
4.3.1. Messaging 
4.3.2. Voice 
4.3.3. Stories 
4.3.4. Messenger Platform for eCommerce 
4.3.5. Strategy 
4.4. Instagram 
4.4.1. Photo and video-sharing 
4.4.2. Monetisation 
4.4.3. Strategy 
4.5. Snap Inc. 
4.5.1. Snapchat 
4.5.2. Spectacles 
4.5.3. Strategy 
4.6. Microsoft 
4.6.1. Voice and Instant Messaging Now Through Skype 
4.6.2. Emailing 
4.6.3. Skype for Business 
4.6.4. LinkedIn 
4.6.5. Strategy 
4.7. WhatsApp 
4.7.1. Messaging and Voice 
4.7.2. Business Model 
4.7.3. Strategy 
4.8. WeChat 
4.8.1. Messaging and Voice 
4.8.2. Platform strategy 

5. Telco Positioning 
5.1. Why are telcos concerned? 
5.2. The Main Strategic Reactions by the Telcos
5.2.1. Prohibit OTT applications on the network 
5.2.2. Bundling; Unlimited or Abundant Packaged Offers 
5.2.3. Partnerships with OTT providers 
5.2.4. Provision of telco-OTT 
5.2.5. GSMA-led RCSe Initiative 

6. Conclusion/Strategic Analysis 
6.1. OTT communications have a minimal impact on telco revenues 
6.2. OTT communication services as part of the platform strategy 
6.3. Telcos at crossroads: to partner – or not – with Google for RCS? 

Tables & Figures
Table 1: OTT communication services provided by OTTs
Table 2: Comparison of telco and OTT characteristics for communication services
Table 3: Common rules vs. ECS-specific regulations
Table 4: Regulatory imbalances between network operators and application providers
Table 5: Current view on debates related to OTT communications
Table 6: Skype finances, 2007 to 2010 (pre-acquisition by Microsoft)
Figure 1: The WebRTC site, maintained by Google's Chrome team
Figure 2: OTT communication service business models and examples of adopters
Figure 3: OTT communication services market worldwide, 2014-2021
Figure 4: Regional shares of the OTT communication services market, 2017 and 2021
Figure 5: Breakdown of global OTT communications market by segment, 2017 and 2021
Figure 6: OTT VoIP market worldwide, 2014-2021
Figure 7: Regional shares of the VoIP market, 2017 and 2021
Figure 8: OTT IP messaging market worldwide, 2014-2021
Figure 9: Regional shares of IP messaging market, 2017 and 2021
Figure 10: Active users of messaging / chat / VoIP services, as of January 2017
Figure 11: Social networking communication market worldwide, 2014-2021
Figure 12: Regional shares of the social networking communication market, 2017 and 2021
Figure 13: Leading social networks worldwide as of January 2017, by active monthly users
Figure 14: OTT communication service provider categories and examples
Figure 15: Group video-calling option within Facebook Messenger
Figure 16: Google G Suite for business users
Figure 17: Google Hangout Website
Figure 18: Google Allo (left) and Duo (right) Apps
Figure 19: Instant Video inside a live chat in Facebook Messenger
Figure 20: Example of a shared Facebook Story
Figure 21: Messenger Business Chat (left) and chatbot (right)
Figure 22: Direct purchase within Messenger
Figure 23: Screenshot of Instagram ‘Live with a Friend’ feature
Figure 24: Examples of Instagram: a sponsored post (L) redirecting user to commercial website, and an influencer’s sponsored post featuring new ‘Paid Partnership’
Figure 25: Screenshots of Instagram Insights
Figure 26: Snapchat quarterly average daily active users, millions
Figure 27: Screenshot of some main Snapchat functionalities
Figure 28: Spectacles advertisement
Figure 29: Stock value evolution of Snap, Inc. (SNAP), March-January 2018
Figure 30: Message displayed by Windows Live Messenger on the download page
Figure 31: Skype for Business
Figure 32: The WhatsApp application
Figure 33: WeChat application
Figure 34: Main features of the WeChat app
Figure 35: WeChat connection platform
Figure 36: The value flow with and without OTT communication providers
Figure 37: Telefónica approach to a level playing field in data and consumer protection
Figure 38: Orange 'Livebox Zen' STB offer, including fixed VoIP
Figure 39: Sosh (by Orange) with unlimited SMS and at least two hours free calling
Figure 40: TU Go for Web interface, by Telefónica
Figure 41: TU Go, by Telefónica
Figure 42: The Orange Libon app
Figure 43: Google technology for the RCS ecosystem via Jibe
Figure 44: Total telco communication vs OTT communication revenues, 2014-2021
Figure 45: Mobile revenue growth: impact of MTR, roaming GDP
Figure 46: Breakdown of global OTT communications market, by segment, 2017 and 2021
Figure 47: OTT communication services as part of a broader platform strategy
Figure 48: Stickers and games from WeChat
Figure 49: Medical retailer selling goods within WeChat
Figure 50: Joyn timeline to failure, and the rise of Google-Jibe
Figure 51: Telekom Message+ (RCS) from DT

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