VietNamNet Bridge – Voice call and SMS services will be provided free of charge when Vietnamese mobile network operators join hands with OTT (over the top) app developers to earn money from data services.
Mobile network operators and OTT app developers have finally found a way to co-exist.
According to Harald Preiss, a senior executive of Nokia Networks, in the countries which have been utilizing 4G technology like Japan, mobile network operators now provide free voice call and SMS service as a part of the monthly data package service, and they only charge fees for data services.
As such, when customers use OTT services, mobile network operators can earn money, while users will be more satisfied because they can use high-quality services.
And OTT services still can exist even when mobile network operators do not collect fees on voice calls and SMS, because users still like OTT services.
This is a “win-win-win” solution for all the OTT service providers, mobile network operators and users.
OTT service providers can provide services in the “open air” and they do not have to scramble for customers with mobile network operators.
Meanwhile, telcos do not care about the revenue from voice calls and SMS, because they will collect money from data services.
Analysts have also predicted that when deploying 4G technology, Vietnamese mobile network operators are likely to apply the business model, which means that users would be able to use free voice call and SMS service, while the confrontation between mobile network operators and OTT service providers would enter a new stage of co-existence and co-development.
However, an expert from Nokia Networks noted that things would depend on the countries’ conditions and network operators’ strategies.
OTT services will still exist, no matter if the network operators utilize 4G technology. OTT services have been existing on the 3G network and they have been favored by users.
Therefore, it is necessary a solution which allows all the parties related to OTT service, including users, network operators and OTT service providers, feel satisfied. And 4G is believed to be a good option.
There has been no perfect solution to the co-existence of OTT service providers and network operators. Meanwhile, the number of OTT app users has been increasing steadily.
It is estimated that there are 12 million Viber users in Vietnam, 4 million Line and 10 million Zalo users. Vietnam expects to have 30 million OTT app users by the end of the year.
Regarding the time of 4G deployment, the Ministry of Information and Technology (MIC) said the technology would be utilized in Vietnam in 2015.
However, market demand and users’ readiness will determine when 4G can be put into use. MIC has advised mobile network operators to make hectic preparations for 4G.
According to Claudio Frascoli from Nokia Networks, one of the Vietnamese biggest network operators has seen a 100 percent growth rate in data service. This is good news, which reflects the high demand for data services from smartphone subscribers.
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