Facebook has invested in Internet drones to bring millions of people who lack connectivity online. Google Loon makes use of high altitude balloons to boost Web access. And just this week, SA's own Elon Musk announced his plans to deliver low-cost Internet access to the masses via a series of micro-satellites launched through his space travel start-up, SpaceX.
"Were these kinds of technological innovations to gain large-scale momentum, something I admit won't happen for quite some time, where does this leave operators? And are the relationships that they are building with over-the-top (OTT) players now, still viable in that scenario?" asked Brett Loubser, head of WeChat for Africa, on the side-lines of the AfricaCom conference, in Cape Town.
Loubser confessed to feeling passionate about the complex dynamic that exists between operators and OTT providers, stressing there are completely sustainable ways for OTTs and network operators to work together.
"For years, almost every mobile operator has had this fear of becoming a 'bit-pipe'. And they have attempted to counteract this threat by trying to introduce their own content businesses, their own app store environments, ecosystems and even their own OTT products. But none of these have really succeeded in competing with the big guys," he said.
"This situation provides opportunities. Operators need to understand the long-term opportunities and understand there are ways to work together that is mutually beneficial." As such, Loubser asserted that a partnership is the obvious solution.
If an OTT provider has a commerce-based ecosystem that underlies the core technology of their platform, there are multiple vertical opportunities for revenue-sharing and ecosystem partnerships, he said. "Ideally, I would like to get to a point where the more WeChat users are actively using a network, the more money the operator makes."
While Loubser acknowledged Africa appears to be leading the charge in terms of these strategic collaborations, he is sceptical about the long-term viability of many of these partnerships. "If the fundamental technology that delivers connectivity changes, where does that leave the operator?"
When operators and OTT providers are looking to partner, there are various objectives that each party is looking to achieve, Loubser continued. "Right now, it isn't really the number one operator driving these collaborations, it is generally a competitor. For them, this facilitates an acquisition strategy; using zero-rated access to an OTT product as a mechanism to drive further adoption." And in doing so, they are also building a user base of these providers.
At the end of the day, we all just want to sustain our businesses, said Loubser. "The reality is that we cannot easily dismiss things like balloons and drones and satellites. Real conversations around these innovations are already happening. The technology to deliver this kind of service does already exist. Which is not to say they will topple the entire market in the next three or four years," he noted. "But it does not mean we should all sit back and think these new access providers are something we can safely ignore."
For OTT providers, the reality is that people can consume an Internet service on any kind of device and using any kind of connectivity, concluded Loubser. "The bearer is irrelevant to us. It is just a means to an end. And should new technologies emerge that widen access points, one has to question if the model the operator has with the OTT provider will continue to generate revenue?"
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