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Cell C WhatsApp deal: adapt or die [ITWeb](ITWeb Via Acquire Media NewsEdge) Cell C has taken the "tough decision" to embrace OTT players and will decide how to deal with the addition of WhatsApp voice when it becomes available. Third operator Cell C has assumed the adapt-or-die attitude of some of its global counterparts, taking what it says was the "tough decision" to embrace over-the-top (OTT) players, rather than try to block them. In just over two weeks (../index.php?option=com_content&view=article&id=137825), the data string attached to the free instant messaging (IM) app WhatsApp will become free of charge for Cell C customers. While the offering is being introduced on a promotional basis for now, Cell C's executive marketing head Doug Mattheus yesterday indicated the operator was open to future partnerships with other OTT players. This includes voice over IP (VOIP) services offered by OTT players, says Mattheus. Earlier this year, WhatsApp CEO Jan Koum said (../index.php?option=com_content&view=article&id=71154) the company would soon offer free voice calls to its users – similar to BlackBerry Messenger's (BBM's) voice over WiFi service. Mattheus says, while it is a difficult decision for the operator to make, it needs to embrace the new ways in which people are communicating. "It's a tough decision to make in our business, as OTT players do eat into revenue, but you don't want to be a caught with a warehouse full of Walkmans when others are offering iPods. We have to be aware of the new dynamics of communication, even if it seems counter-intuitive to embrace these." He says, while it cannot be said what the future holds in terms of partnerships with OTT players, Cell C has already said it is going to embrace IM and associated services – and it would be difficult to make a U-turn on that decision now. Mattheus cites bundles and all-you-can-consume "buffet" offerings as two of the options the company may look into. White Paper (http://www.gsma.com/membership/wp-content/uploads/2013/10/White-paper-Aug2013.pdf) outlining the OTT challenge, and the opportunity this presents for mobile operators. The paper points out mobile operators also benefit from the popularity of OTT services, due to increased data use and the fact that smartphone familiarity encourages wider data use. But many operators still resent the OTT trend. Two months ago, Indian mobile operators' claws came out during a seminar around the issue of a regulatory framework for OTT services, organised by the Telecom Regulatory Authority of India. According to the Economic Times of India (http://articles.economictimes.indiatimes.com/2014-08-05/news/52471142_1_ott-telecom-operators-unified-telecom-service-providers), operators demanded the regulator help them achieve a more level playing field for traditional operators against OTT players. Meanwhile, China Mobile – the world's largest operator by subscriber numbers – has stated Internet companies pose a far greater challenge than its traditional rivals and has warned mobile operators the world over need to put plans in place to avoid becoming dumb pipes. The company's chairman, Xi Guohua, recently said China Mobile could not block the OTT trend and would have to adjust its strategies to adapt. (c) 2014 ITWeb Limited. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |