25 October 2023

Why Telecom Operators & ISPs are offering Bundled OTT Services?

OTT services have disrupted the whole world over the last few years. It is driving the internet market crazy. Almost 80% of the data consumption of an ISP is covered by the OTT traffic and it is growing. The overall consumption by a user is also doubled. On the other hand, ARPU has been reduced gradually. How are the service providers managing this? Before the introduction of OTT in the market, telecom operators were providing a bunch of VAS for additional revenue from their existing customers, like caller tune, sports updates, etc,. But now the circumstances are totally different as just content bundling is considered as value addition. The more OTT content you bundle you create more opportunities for direct revenue on the OTT subscriptions and indirect revenue on the customer retention, advertisement, etc. Is it possible for a Large, Medium, and Small sized operator to invest in OTT platforms to grow their business and subscriber base? Certainly yes! Let’s understand this in depth.

Mobile Plans Bundled With OTT

Airtel, Jio and Vodafone Idea Limited offer various services with OTT bundled when it comes to the plans on Mobile Network. One of the major players who first started offering additional OTT services bundled with their prepaid and postpaid plans was Airtel. Most of the Airtel subscriptions of at least Gold level offers unrestricted access to their Airtel Xstream service which offers shows and movies from multiple OTT platforms free for the users. The plans also curated access to over 10,000 movies and TV shows from OTT partners including Zee5, Eros Now, Disney+ Hotstar, CuriosityStream and others. These bundled services with OTT allow Airtel to attract more subscribers and grow ARPU which ultimately grows their business.

OTT Subscriptions offered on Broadband Plans

Similar to the mobile network plans, Broadband plans also come with complimentary OTT services these days. Airtel, Vodafone Idea Limited and Jio offer free OTT subscriptions with some of their plans. OTT providers such as Amazon Prime, Netflix, Disney+ Hotstar and others are paired with Jio high-speed broadband connections. These services are over and above the free access to Jio Cinema, which is included in the Jio Broadband subscription. These bundled services with OTT allow Jio to attract more subscribers and grow ARPU which ultimately grows their business. OTT

In Conclusion

In short, almost all the mobile network providers and Broadband providers now offer at least one OTT as complementary with their main service to their subscribers. This attracts the subscribers as they do not need to spend extra money to gain access to a particular OTT platform. This is a win-win situation as the service providers gain more subscribers and the OTT platforms also get better penetration in the market with more users onboard their platform. The user sentiment has been very affirmative with this regard most of the users seem to enjoy this additional benefit that is being offered by their service providers. H8 ISP Software allows service providers to integrate their plans with various OTT platforms without any hassle. Want to know more about how H8 ISP Software will help you in growing your ISP Business by integrating your plans with various OTTs? Contact us right now by writing us a mail at h8ssrms@height8tech.com or call/WhatsApp us at +91-6358931775. Follow us on Facebook, LinkedIn, Twitter, and YouTube to get updates on the latest technological advancements in the telecom sector.
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