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OTT: reshaping TV, telecoms and advertising

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In 2019 OTT outstrips Pay TV, Mickey Mouse starts streaming and 5G gives operators a headache, here experts from Openwave Mobility outline what that means for the telecoms industry

2019 is set to be the year of OTT TV services and that is going to have massive implications for networks – not least those rolling out 5G, which are going to see the bulk of the increase in traffic.

But what does that actually mean? We asked the experts at Openwave Mobility in the US to offer some predictions for how this will play out. These predictions are based on some of the findings from the Mobile Video Industry Council  – which includes Tier 1 mobile operators: Deutsche Telekom, EE, KPN, MTS, Orange, Telefonica, Telus and Vodafone along with key industry analysts ABI Research, Analysys Mason and Strategy Analytics.

And here is what they said.

OTT subscribers surpass traditional PAY TV consumers – impacting traditional advertising models

John Giere President and CEO says:With the launch of 5G in 2019 and more gigabit internet deployments, OTT content is easier and faster to access than ever. By the end of 2019, globally, there will be more OTT subscribers than traditional pay TV consumers. Unsurprisingly, mobile will gather pace but as an additional screen not a replacement. 5G could even be regarded as a video distribution network because of the sheer volume of video and with the APIs 5G offers, it will deliver a wealth of data for advertisers and content providers to truly transform the future of mobile video.

HD will be 60% of mobile video traffic in 2019

Matt Halligan CTO and Head of Engineering comments:“Mobile video growth is a given, but what many operators did not anticipate was the exponential growth of HD content. In fact, through 2019 it will be the growth in HD, as much as longer viewing times, that drives growth in video traffic on mobile networks. In 2019 there will be yet more streaming services. Already Apple, WarnerMedia and Disney+ are expected to launch. Of course that will bring joy to millions of subscribers but its sobering news for mobile operators who have to handle the increase in traffic and the ensuing encrypted protocols that could wreak havoc on Quality of Experience.”

4G RAN congestion is 5G’s collateral damage in 2019

Indranil Chatterjee, SVP of Products, Sales & Marketing adds: In 2019, 5G will be in the hype cycle, but many operators would be busy internally trying to architect 5G networks. 4G networks and in particular 4G radio networks will be bursting at the seams as user appetite for data will heighten next year. This will lead to inferior QoE, especially when it comes to video streaming as users gauge network quality based on their video experience. Operators who are savvy about tackling RAN congestion and QoE with efficient, cost effective solutions while preserving CAPEX for 5G deployments will come out on top.

In 2019. data management in 5G could be a rude awakening to many

Aman Brar VP of Global Solutions & Global Alliances concludes: Everyone’s talking about what 5G and IoT can do for operators, but relatively few operators have addressed the fundamental changes that 5G means for data management. 5G’s service-based architecture means that operators require a common data layer that can store diverse data like fast-changing session data to long lasting subscription data. In 5G, operators are faced with ‘stateless’ Network Functions – i.e. services that do not store data from one session to the next but instead rely on common external data management.

 

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