HomeNewsReport: Content Delivery Networks offer mobile operators response to "lost" OTT revenues

    Report: Content Delivery Networks offer mobile operators response to “lost” OTT revenues


    Strategy Analytics is publicising a report that appears to suggest that Content Delivery Networks (CDNs) could provide  m obile operators with a weapon “in the battle for Over the Top (OTT) service revenues”.  

    According to Strategy Analytics’ Mobile Broadband Opportunities (MBO) service report, “Mobile Content Delivery Networks Reduce Media Delivery Costs and Create OTT Revenue Opportunity, CDNs will become a significant revenue opportunity for mobile broadband operators as they offer:
    • Multi-screen’ delivery of video to smartphones, tablets, laptops and televisions
    • Premium content services with differentiated Quality of Service (QoS)
    • Value-based response to the dominance of OTT content providers.

    “The focus on multi-screen video delivery could presage a major operator opportunity for recapturing value from OTT content providers,” commented Susan Welsh de Grimaldo, Director Mobile Broadband Opportunities. “CDNs provide paths for mobile operators to be both the ‘Best Bit Pipe’ for blind OTT services and the provider of value added ‘traffic and service aware’ CDN services.  Both leverage the operator’s substantial network expertise in order to establish a competitive advantage.”

     “The mobile CDN market is likely to exhibit a positive `network effect’ as additional users join to send and receive high quality media content. Premium application and market-focused CDNs could increase network value exponentially,” emphasized Sue Rudd, Director Service Provider Analysis. This report identifies some of the early operators who are already leveraging CDNs for multi-screen and mobile broadband applications – AT&T, BT, Deutsche Telekom, KDDI, Orange, SFR, Talk Talk, Telecom Italia, Telkomsel and TP.

    Recently, the explosion of mobile broadband traffic has begun to refocus the CDN industry around mobile services and led to the creation of a new platform licensing model from leading CDN technology vendors – Akamai / Ericsson, Alcatel Lucent / Velocix, Edgecast, Jet-stream and Limelight – who are responding to pressure from service providers that like to own and sometimes operate their own CDN platforms. Technology vendors are also offering ‘federation ready’ platforms which have enabled several bi-lateral and vertical market peering relationships.