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Impact of Over-the-Top (OTT) Services on the Telecom Companies in the Era of Transformative Marketing

Author

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  • Muhammad Farooq

    (Limkokwing University of Creative Technology)

  • Valliappan Raju

    (Limkokwing University of Creative Technology)

Abstract

Due to digitalization today, we are more connected than ever before in human history. Access to the Internet has increased from 16 million in 1995 to 4157 million users by the end of December 2017. The industry which helped humanity connected and made the world a global village is the telecommunication industry. However, today the telecom companies are facing revenue losses; for instance, revenue of value-added services of telecom companies in Pakistan has reduced from Rs 5861 million in 2012 to 236 million by the end of 2017. Similarly, because of WhatsApp, Skype and Messenger usage, the long-distance call and SMS revenue of telecom companies in Pakistan have reduced from Rs 47,969 million in 2008 to 19,555 million at the end of 2017. With the empirical evidence from Pakistan and the literature from all over the world, this overview research paper summarizes the issues of the telecom sector and suggests a way forward to help the telecom companies to come out of this situation. For review paper, official telecom regulatory reports and GSMA reports have been referred. This study concluded that, on the one hand, telecom company’s revenue is decreasing and, on the other hand, it is bringing enormous opportunities to the companies. Telecom companies can get the benefit of changing customer preferences’ by understanding customers’ requirements, producing and selling Internet and digital value-added products and services in parallel with traditional telephony services

Suggested Citation

  • Muhammad Farooq & Valliappan Raju, 2019. "Impact of Over-the-Top (OTT) Services on the Telecom Companies in the Era of Transformative Marketing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(2), pages 177-188, June.
    • Handle: RePEc:spr:gjofsm:v:20:y:2019:i:2:d:10.1007_s40171-019-00209-6
    DOI: 10.1007/s40171-019-00209-6
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    References listed on IDEAS

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    1. Waqar Younas & K. Ramanathan Kalimuthu, 2021. "Telecom microfinance banking versus commercial banking: a battle in the financial services sector," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(2), pages 67-80, June.
    2. Muhammad Farooq & Valliappan Raju, 2019. "Want to Stay the Market Leader in the Era of Transformative Marketing? Keep the Customers Satisfied!," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(3), pages 257-266, September.
    3. Nakul Parameswar & Sanjay Dhir & Sushil, 2020. "Interpretive Ranking of Choice of Interaction of Parent Firms Post-International Joint Venture Termination using TISM-IRP," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(1), pages 1-16, March.
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    5. Valliappan Raju, 2021. "Implementing Flexible Systems in Doctoral Viva Defense Through Virtual Mechanism," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(2), pages 127-139, June.

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