The power of OTTs over MNOs and 5G.

This article is about the power of OTTs (Over The Top Players like Youtube, Facebook, Skype, WhatsApp, Viber, Instagram etc.) over the MNOs (Mobile Network Operators).

It is well known that VoLTE (Voice over Long Term Evolution a.k.a 4G) have a superior quality of voice over the OTTs applications like WhatsApp, Skype, Viber, Line etc. MNOs keep their advantage with this but up to a limit. What is not known is that MNOs have periodical reviews of network parameters to ensure that all OTTS application are running smoothly on their network. It is very easy to understand why this is happening: if any problem occurs (like Youtube videos with poor quality and too much buffering; Or if Skype gets too many gaps in conversation or metallic voice etc.) end user will not blame Youtube or Skype for this but the Mobile Network Operator itself. MNOs are very much aware that if this happens 5-10 times for a specific user in a short time then user will decide to switch the carrier and cease the existing contract. This is the last thing that MNO would like to happen. Despite all parameter tuning sessions (that take place periodically) problems still occurs due to congestion at busy hours but for this there isn’t much MNO can do in short time. Congestion can be solved in medium time by splitting a sector in 2 sectors, by adding new layers, by adding new sites etc. But this is not what I wanted to talk about.

The real power of OTTs lays in the very nature of the traffic today in MNOs networks: over 57% of MNOs traffic represents video (source Ericsson Mobility report June 2018). That percentage is estimated to grow to 73% in 2023. Now imagine what would happen if Google/Youtube decides to change codecs over night for a better user experience. Or if the sliding buffering window (the amount of the video that it is buffered in advance from what the user is actually watching) is doubled in size for a better user experience. Or if suddenly any video that is available in HD or 4K will be sent to user in its highest available format not in the standard 720p format. Or what will happen if Google decides not to accept any uploaded videos in a resolution lower than HD format. Same with Facebook if it changes the settings and allows users to upload larger files and videos. Or if Skype decides to change their coding schemes to a better video resolution. It will be a disaster for MNOs as none of them has the capacity to handle such a situation at busy hours especially in downtown/CBD cells. This is the power that OTTs have over MNOs and some of the OTTs are not even aware about this kind of power. Whatever changes OTTs will make, MNOs will have to adapt to those changes. It’s not the other way around: that OTTs have to adapt to MNO settings. That is because end users have a special relation with each of the OTTs. Each OTT has a special and unique flavor in user’s heart. If any OTT application doesn’t work well on user’s mobile tehn user will switch the carrier provider in an instant, without thinking twice about it. Users just love OTTs. Whereas for end user mobile service offered by carrier/MNO doesn't mean much; we can say that it is already a commodity. He can find the very same service 10 meters further down the road usually with a lower price than his already existing contract. Lesson here for MNOs: don’t underestimate the power of OTTs as they rule the world right now. And they will continue to rule it much longer from now on especially because 360 degrees videos are around the corner. Same for 3D video chatting. Same for 8K and 16K videos. And this is very likely to happen even in 5G with network slicing , NFV and SDN. OTTs are in the dominant position no matter what MNOs will do or say.