DigitalRoute Survey Predicts a New Era of Collaboration Between Telecoms and OTTs

by Keith Brody 13/04/15 15:00

DigitalRoute, today released the results of its DigitalRoute Telco Industry Survey 2015, which presented 3,000 telco decision-makers with its own 2015 predictions for the industry, and asked them to agree, disagree and explain why.

A significant majority agree with DigitalRoute on several key points, including that telecoms and OTTs must partner in order to survive, there must be a renewed industry-wide focus on improving the customer experience, and that the adoption of technologies such as cloud and Network Function Virtualization (NFV) will be slower than their vendors expect.  

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The resulting report, “DigitalRoute Telco Industry Survey 2015- Final Report” is available to view and download now on the DigitalRoute web site: Predictions 2015  

“After making our bold predictions in November, including some that ran directly counter to the hype coming from many vendors and industry watchers, we wondered whether telco executives actually in the trenches agreed with us. It’s gratifying to know a significant majority do,” said Anders Grundborn, Chief Marketing Officer, DigitalRoute.

The first DigitalRoute prediction survey respondents were asked to consider was: “NFV is overhyped – it will take off in 2016, not 2015.” 79 percent of respondents agreed with that statement, adding that network infrastructure is too critical to be virtualized, and that standardization and key design agreements need to be established.

77 percent also agree with DigitalRoute’s prediction that “cloud-enabled OSS and BSS solutions will become table stakes as apps start to move into the cloud in 2015.” A minority view expressed by respondents called OSS and BSS too critical to leave in the cloud, and expect that only markets and segments where scale is not an issue will look to leverage the cloud.

Telecoms have clearly made customer service & network experience a top priority for 2015. 91 percent of respondents agree with the DigitalRoute prediction that “the need to deliver better customer experience will result in OSS being reshaped and new applications that leverage network data will emerge.” The consensus is that the next evolution will be OSS data analysis driving business outcomes, and that being customer-centric will be the key to next generation telco.

“We also expect telcos to work harder to earn their customers’ trust and loyalty. We believe that operators who are transparent about information like data usage will be the winners, and three out of four of the decision-makers we surveyed agreed. They realize customers have little idea how to measure service or understand what want, and as long as operators are only seen as a commodity, there will be no trust,” added Grundborn.

The report also finds OTTs will realize they have to work closely with telcos, primarily because net neutrality will ensure what DigitalRoute calls “walled gardens” will have to disappear. Telcos that cling to the idea that net neutrality is temporary are doomed to become bitpipes. Best-in-class outcomes will be the result of collaboration.

“The survey suggests that we are broadly realistic about how the telco industry will shape up in the coming year. There is widespread recognition that industry change is coming but despite vendor hype, it will take time to happen.  In the end, it is the customer who stands to benefit the most,” said Grundborn. 

Topics: OTT, NFV, bss, OSS Mediation, 2015 Predictions

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About DigitalRoute

DigitalRoute has been providing new approaches to data integration and management since 1999. Its technology offers high throughput and provides a unique degree of user configurability, processing all usage and statistical data extracted from the networks, including both billable and non-billable events. This means customers gain greater cost efficiencies, improved times-to-market for new service offerings, the ability to monetize any data, and the means to enhance end-customer satisfaction. DigitalRoute makes network events available to the right systems in the right formats in the most appropriate volumes at the required times, without losing a single bit. This is the foundation from which multiple, mission-critical use-cases can be addressed in the areas of Billing Mediation, OSS Mediation, Online Control and Enterprise Data Processing. 

Over 350 leading companies worldwide use DigitalRoute technology to meet their data management needs, including a number of OEM partners who use our technology as a central part of their own offerings. DigitalRoute is built on the core values of Expertise, Open-Mindedness and Commitment. With close to 200 employees, the company is headquartered in Stockholm, Sweden with regional offices in Gothenburg, Atlanta and Kuala Lumpur. DigitalRoute is a venture-backed, privately-held company.

Keith Brody

Head of Communications