A proposed portfolio analysis model for over-the-top initiatives

The presence of over-the-top (OTT) services on top of telecommunication networks has created disruption for communication service providers (CSPs). CSPs have been relying on connectivity services with direct charging models, while OTT players instead offer various applications and content services with indirect charging models or free-like services, such as freemium, two-sided markets model and market capitalisation. CSPs have been searching for the winning formula in response to potential opportunities and threats from OTT players who do not have to bear heavy investment connectivity service. CSPs must embrace OTT opportunities to maintain their market position, but the question remains as to how to select the most promising OTT projects (or initiatives) among unlimited possibilities and short windows of opportunity to realise the potential early. Current portfolio analysis models may not be able to answer this question adequately. This study combines a theoretical review and empirical research to gain insights from the previous common portfolio analysis models and compare those models with the expectations of OTT initiative portfolio managers. Upon gathering the required information, the research uses a group model building approach to construct and test a new portfolio analysis model specially designed for selecting OTT initiatives.