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The Telco-OTT Paradox
At the heart of this discussion lies a fundamental paradox: telcos build, maintain, and invest in internet infrastructure. Yet, it is the OTTs who leverage this infrastructure to generate profits from end-user experience—often with significantly higher margins.
Telcos are defined by reliability, stability, and regulatory compliance. OTTs, on the other hand, are built on a software-first philosophy. They move quickly, innovate rapidly, and adapt constantly to user needs. The difference is not only technological—it’s cultural.
And yet, telcos are no longer just providers of voice and data. They are transforming into digital service providers. In this journey, perhaps their greatest advantage is their ability to learn from those already shaping the future.
How OTT Players Operate Differently
OTT services stand out because they approach the user relationship with a completely different mindset.
First, they place absolute priority on user experience. From simple interfaces to intelligent content suggestions, the user is at the center of the product. In contrast, telcos often prioritize operational functionality and regulatory compliance, leading to poorly designed apps, difficult navigation, and limited self-service options.
Second, OTTs make full use of data. Apps like Netflix or Spotify don’t offer the same content to everyone—they build dynamic, personalized user profiles. Similarly, telcos have access to vast data—usage, location, behavior—but rarely use it with the same intelligence.
Third, OTTs are agile. They update services weekly, constantly experiment, and adopt new features without delay. Telcos, constrained by legacy systems and complex internal processes, move more slowly.
Finally, OTTs have diversified revenue models. They don’t rely solely on subscriptions—they offer freemium plans, ads, in-app purchases, or strategic partnerships. Telcos often remain locked into traditional pricing models for data and voice.
Searching for a New Model: From Infrastructure to Experience
The major transformation for telcos will come when they move beyond the notion of providing “access services” and instead become providers of digital experiences. This means the product is no longer just the network—it’s the quality of the customer relationship.
A great example is the messaging space. While OTTs (like WhatsApp, Telegram, etc.) have created entire ecosystems around messaging, telcos still rely almost exclusively on SMS.
Comparative Table: OTTs vs Telcos
To better understand the differences and where the two models can converge, consider the following indicative comparison:
| Dimension | OTT Players (e.g. Netflix, WhatsApp) | Telecom Providers |
|---|---|---|
| Registration / Onboarding | Instant, frictionless | Complex, often requiring in-person activation |
| Product Updates | Frequent, agile, weekly | Slow, due to legacy infrastructure |
| Personalization | AI-based, real-time content recommendations | Static targeting, mass messaging |
| Revenue | Subscriptions, ads, partnerships | Flat fees, per-minute/GB/SMS billing |
| Customer Support | In-app support, continuous feedback | Call centers, email, basic FAQs |
The gap is not just technological—it’s strategic. Telcos can become more competitive not by copying, but by adopting modern approaches tailored to their strengths.
What’s the Next Move?
Telecom providers are not starting from scratch. They’ve built trust, infrastructure, and serve millions of users. The real challenge is how to activate these assets in the digital age.
The transition requires:
- Architectural modernization: Moving from rigid, legacy systems to cloud-native, API-first infrastructures.
- Customer-centric design: Developing apps, portals, and bots designed for users—not just IT departments.
- Strategic partnerships: Instead of competing with OTTs, telcos can offer bundled services or shared APIs.
- Data-driven services: Predictive analytics, personalized experiences, and dynamic pricing.
Platforms like mCore can be catalysts for this transition. With analytics, ready-made integrations, and white-label options, it offers the flexibility of an OTT service with the security and reliability of a telco.
Conclusion: The Future Belongs to Digital Telcos
OTT services didn’t destroy the telecom market—they revitalized it. And now, telcos are being called to redefine their role: not as mere providers of lines, but as enablers of digital experience.
The opportunity is here—to leverage their infrastructure, build intelligent products, and win back the trust of users in a world that no longer tolerates stagnation.
With the right strategy, the right tools, and a bit of OTT mindset, telcos can once again become central to the digital lives of people and businesses alike.
