Remember when your phone company just gave you calls and texts? Those days are long gone.
Today's telecom giants aren't just connecting your calls anymore. They're fighting for space on your TV screen, your tablet, and every device you own.
Here's the thing: while you've been binge-watching Netflix and scrolling through TikTok, telecom companies have been watching their traditional revenue streams dry up. Voice calls? Down. Text messages? Barely surviving.
According to the GSMA Mobile Economy Report 2021, global voice traffic has dropped by 22 percent. SMS usage is shrinking by 11.7 percent each year.
At the same time, OTT (Over-the-Top) platforms are seeing explosive growth. These are services that stream content directly to users---no cable, no satellite, no middleman.*
*OTT platforms are the ones deliver digital content via the internet, bypassing traditional media channels like cable and satellite TV. For example: Netflix, Amazon Prime, HBO Max, Disney+, Youtube,…
Telcos are now rethinking their future. They're asking: Why let someone else deliver the content when we already own the infrastructure and the customer relationship?
In this blog, we'll explore why telcos across the world are racing to build their own OTT platforms, the challenges that come with it, and how platforms like OTTclouds are making this transition faster and more achievable.
But first, let's look at the impressive market data of this streaming gold rush!
Table of contents [ Hide ]
The numbers don't lie: OTT is exploding
What's driving telcos into OTT?
1. Customers want everything in one package
2. 5G changes the game completely
3. Keeping customers from leaving is everything
The hidden challenges of building OTT in-house
It takes a lot of time
It's expensive and complicated
Revenue isn't always fair
The smarter way: Partnering with OTT solution providers
Choosing the right partner matters
Introducing OTTclouds: All-in-one FAST channel & OTT streaming solution
Complete multi-device platform
Flexible monetization models
FAST channel support
Smooth performance, even at scale
Simple management and real-time insights
Final thoughts
The numbers don't lie: OTT is exploding
By 2034, OTT services are expected to reach a market value of $2.8 trillion, growing at an impressive 24.42% compound annual growth rate (CAGR), according to Precedence Research. Yeah… 24.42% growth rate year after year. To put that in perspective, most industries would kill for even 10% growth.
Meanwhile, traditional telecom revenue is heading in the opposite direction. Based on the GSMA's 2021 Mobile Economy Report:
- Global voice traffic dropped by 22% between 2015 and 2020.
- SMS usage is shrinking by 11.7% every year.
Where the money's really flowing?
In contrast, OTT platforms are becoming the new center of attention, both for users and investors. In North America, OTT services already generate 38% of the world's OTT revenue, largely thanks to broadband saturation.
AT&T acquiring Time Warner and Comcast merging with NBCUniversal, to control content and infrastructure. These are "bet the company" moves.
But this isn't just a Western story. Across Asia, especially Southeast Asia, telecom operators are moving fast to keep up with changing user behavior and new revenue opportunities. Look at what's happening:
Outstanding OTT platforms in Southeast Asia
| Telecom Company | Country | OTT Platform | Significant Features |
|---|
| Vietnam | MyTV OTT | Transitioned to OTT in 2021. ~200 channels. 4K VOD, sports. Accessible on multiple devices. Works independently of VNPT’s network. |
| Vietnam | FPT Play | Multimedia OTT platform with online TV, movies, sports. Compatible with Smart TVs, smartphones, tablets. Rich content library. |
| Vietnam | Viettel TV | Paid OTT service with live TV, HD movies, sports, and replays. Available on Smart TV, phone, computer. Basic plan from 22,000 VND/month. |
| Singapore | Cast | Singapore's first OTT video app. Offers Viu Premium, Kids Pack. Includes educational programs, unlimited downloads, multi-device sync. |
| Regional (Various) | AseanConnect.One | Alliance of major Southeast Asian telecoms (e.g., FPT, TELIN). romotes cross-border OTT support and seamless streaming across ASEAN countries. |
| Indonesia | Orbit OTT | Bundled with wireless 4G home internet. Supports TV, entertainment, and smart home features. No long-term contracts. |
Vietnam
MyTV OTT (VNPT): A pay TV service from the Vietnam Posts and Telecommunications Group (VNPT), MyTV transitioned to an OTT platform in 2021, offering nearly 200 TV channels, 4K VOD movies, and sports on various devices. It operates independently of VNPT's network, accessible via internet or mobile data.
FPT Play (FPT Telecom): FPT Play is a multimedia OTT platform providing online TV, movies, and sports, compatible with Smart TVs, smartphones, and tablets. It features a rich content library, including major sports and movies.
Viettel TV (Viettel): A paid OTT TV service that provides live TV channels and on-demand content. It can be accessed via Smart TV, phone, and computer, offering a rich content library that includes HD movies, sports, and replays. The price starts from 22,000 VND per month for the basic package.
Singapore
- Cast (Singtel): Singapore's first OTT video app, Cast offers thousands of hours of TV series and educational programs. Users can select from various packages, including Viu Premium and Kids Pack, with features like unlimited downloads and multi-device synchronization.
Indonesia
- Orbit (Telkomsel): A wireless home internet service using a 4G router, Orbit also provides OTT services for TV, entertainment, and smart home management, with no long-term contracts required.
Regional Alliance
- AseanConnect.One: A cooperative alliance among major Southeast Asian telecoms, including FPT Telecom and TELIN, aimed at enhancing connectivity and supporting OTT platforms for a seamless streaming experience across the region.
The message is clear: Telcos worldwide are making major investments in streaming. The shift is happening fast and at scale.
What's driving telcos into OTT?
So why are telecom companies suddenly obsessed with streaming? Three big reasons are pushing this transformation.
1. Customers want everything in one package
Today's customers expect one bill, one app, and access to all their content. Simple as that.
Telcos are responding with bundled offers that combine data plans and OTT content under a single subscription. It's convenient, cost-effective, and hard to resist.
Vodafone-Idea figured this out early. They now offer a plan that includes 15+ OTT services like SonyLIV and ZEE5. JioCinema took it further - they doubled their subscriber base to 16 million users with that $0.35 monthly plan.
These bundles increase customer value and reduce the chances they'll leave for a competitor.
2. 5G changes the game completely
With 5G rolling out across global markets, video content is getting faster, sharper, and more immersive.
- 5G reduces buffering by up to 78% compared to 4G.
- It enables 4K streaming, AR/VR experiences, and live broadcasts with minimal delay.
- By 2025, 5G is expected to cover 75% of the global population, according to the Ericsson Mobility Report.
3. Keeping customers from leaving is everything
Customer churn is expensive. Really expensive.
When telcos add streaming services to their packages, customers stick around longer. Movistar Plus+ saw their customer churn drop by 18% after they integrated OTT services like Disney+ into their offerings.
Think about it: if you're getting your internet, phone, and all your streaming apps from one company, why would you switch? The convenience factor is huge.
These three forces are reshaping the entire telecom industry. But building an OTT platform from scratch? That's where things get complicated.
The hidden challenges of building OTT in-house
For telcos, launching an OTT platform sounds straightforward on paper. In reality, it's a minefield of unexpected problems.
It takes a lot of time
The average OTT integration takes 18 to 24 months. That's almost two years from start to launch.
While telcos are building, their competitors are already streaming. Customers are already subscribing to other services. The market keeps moving forward.
It's expensive and complicated
The expenses add up fast, and some of them come as surprises.
For example in Europe, regulatory compliance alone costs between €4-7 million per year. GDPR requirements, content regulations, data protection laws - each one comes with its own price tag.
In Southeast Asia, the challenges are just as costly but different. Thailand's True Corporation spent over $15 million on content licensing and regulatory compliance for their TrueID platform in just the first year. Singapore's Singtel faced similar expenses with their CAST platform, dealing with multi-country content regulations across their regional markets.
Technical problems hit budgets hard too. Movistar in Spain learned this the expensive way during their DRM migration. The technical issues caused a 14% spike in customer complaints, which means more support calls, more refunds, and damage to their reputation.
Even with a great internal team, handling every layer - from content protection to device compatibility, can stretch resources thin.
Revenue isn't always fair
Here's the part that really stings: telcos often receive less than 10% of OTT revenue while covering up to 70% of the marketing costs.
Telcos do most of the work to promote the service. They handle customer support. They manage the infrastructure. But the content providers take the biggest slice of the revenue pie.
That's why more telcos are rethinking their OTT approach, not by abandoning it, but by looking for smarter ways to make it work.
The smarter way: Partnering with OTT solution providers
Smart telcos have figured out a better approach. Instead of reinventing the wheel, they're licensing proven OTT technology from specialists.
Why this approach works?
Faster time to market: Instead of waiting 18 months to launch, telcos can get up and running in a matter of weeks. That speed makes a real difference in competitive markets.
Full brand control: These solutions are white-label, meaning the telco owns the brand, the look, and the user experience. Customers see your name, not someone else's.
Access to proven features: Ready-made platforms come with the features that matter most: multi-device support, monetization models, analytics, content scheduling, and more. No need to build from scratch.
Focus on what matters most: When telcos partner with OTT specialists, they can focus on their core strengths: customer relationships, network infrastructure, and market expansion.
Choosing the right partner matters
Here's what many telcos discover: OTT platforms for telecom come in many different shapes and levels of development. Some are basic video players. Others are comprehensive streaming ecosystems. The quality and features vary dramatically.
This is where working with an experienced consultant becomes valuable. At BiPlus, we help telcos navigate these options and find solutions that match their specific needs and market requirements.
SupremeTech, one of our trusted partners, developed OTTclouds specifically for the telecom industry. Their platform addresses the real challenges telcos face, from multi-device compatibility to revenue optimization.
Introducing OTTclouds: All-in-one FAST channel & OTT streaming solution
OTTclouds, developed by SupremeTech, is a flagship FAST Channel and OTT Streaming Solutions, enabling broadcasters, content providers, and enterprises to launch white-label streaming services.
Here's what makes OTTclouds a smart choice for telcos (and beyond):
Complete multi-device platform
OTTclouds delivers fully branded OTT platforms that work across every device. Smart TVs, mobile phones, tablets, web browsers - one platform covers them all. You get your brand front and center on every screen. No compromise on identity or user experience.
Flexible monetization models
The platform supports all the major monetization models:
AVOD (Ad-supported Video on Demand) generates revenue through advertising. SVOD (Subscription Video on Demand) creates steady monthly income. TVOD (Transactional Video on Demand) lets customers pay per movie or show.
You can mix and match these models based on their market strategy.
FAST channel support
Creating and managing FAST (Free Ad-Supported Streaming TV) channels becomes straightforward. The platform handles EPG scheduling, ad break insertion, and custom graphics automatically. You can launch their own linear streaming channels without the traditional broadcasting complexity.
Smooth performance, even at scale
OTTclouds guarantees buffer-free streaming keeps customers happy and reduces support complaints.
Simple management and real-time insights
The platform includes a full CMS and real-time analytics dashboard. You can track viewer behavior, content performance, and revenue metrics all in one place.
In short, OTTclouds gives you everything you need to launch a competitive OTT service: quickly, affordably, and with full control.
Final thoughts
As core revenues from voice and SMS continue to decline, telcos around the world are turning to streaming as a way to stay competitive, strengthen customer relationships, and unlock new revenue streams. But building an OTT platform in-house can be slow, costly, and complex.
OTT is now a strategic pillar for the next generation of telecom services. And the right technology partner can make all the difference in getting there.
