In today’s fast-evolving digital landscape, the collaboration between telecom operators and Over-the-Top (OTT) services is shaping the future of communication and entertainment. We’re seeing partnerships flourish—whether it’s telcos creating content delivery networks (CDNs) or launching their own OTT services. Some telecom operators have even acquired media companies, like AT&T with Time Warner or Comcast with NBCUniversal, offering consumers a unified platform for multiple OTT subscriptions and premium content.
While these collaborations offer immense promise, they also come with their share of challenges. Telecom executives often express frustration at how uneven these partnerships can be. Telcos frequently end up with only slim revenue margins, sometimes as low as single digits, while OTT providers command up to 90% of the revenue while demanding significant marketing investments as per research conducted by MTM London. As competitive pressures rise, these commercial imbalances can leave telcos struggling to gain meaningful financial returns.
Navigating Technical Complexities
Beyond commercial concerns, the technical integration of OTT services is no small feat. With no standardized APIs and varying OTT requirements, integration timelines often stretch to 18–24 months. For telcos, this delay can be costly, especially if competitors launch their services sooner, capturing market share.
The process is made even more complicated by evolving API requirements, authentication changes, and differing user journeys. This puts heavy pressure on telco technical teams, who must meet aggressive deadlines to avoid disruption. And even after a successful integration, managing these partnerships can be an ongoing operational headache.
The Operational Hurdle
Once integrated, telcos face the challenge of managing multiple partners while striving to deliver a seamless user experience. This involves maintaining compliance with regulations, preventing fraud, and providing smooth billing—a service that has become a basic customer expectation, rather than a differentiator. Meeting these demands while ensuring profitability requires sophisticated acquisition strategies and technical infrastructure, such as unified billing, content previews, and personalized recommendations.
The Role of Middleware in Overcoming These Challenges
While commercial issues can be renegotiated, technical and operational hurdles require a smarter approach. Enter middleware solutions, which streamline the entire OTT integration process, reducing the time to launch from months to weeks. By adopting middleware, telcos not only cut costs but also position themselves as true digital connectivity providers, accelerating time-to-market and increasing profitability.
Traditionally, telcos tried to adapt their legacy systems with custom solutions, but this approach is no longer sustainable. Legacy platforms lack essential features like universal search, content syndication, and self-service options, leaving telcos to juggle multiple, poorly integrated products. What’s needed is a purpose-built platform that combines technical solutions with a robust Partner Management System (PMS).
The Power of an Integrated Partner Management System (PMS)
A fully integrated service delivery platform, like Comviva’s Digital Services Delivery Platform (DSDP), offers a comprehensive solution for telcos, managing everything from partner onboarding to settlements and reporting. The platform equips partners with self-serve capabilities, streamlining operations and reducing administrative burden. This not only enhances engagement with OTT partners but also improves time-to-market and operational efficiency, making telcos more competitive and profitable in the long run.
Comviva’s DSDP simplifies complex integrations and provides telcos with a single plug-and-play platform for managing their OTT partnerships. It offers a robust partner management system that reduces the burden on CSPs, enabling them to focus on core services while the platform handles advanced use cases like reconciliations, settlements, and reporting.
A Technology-Driven Future
As telcos and OTT services continue to converge, one thing is clear: the right technological foundation will be the key to unlocking the full potential of these partnerships. Purpose-built platforms like DSDP enable telcos to streamline processes, reduce costs, and enhance partner engagement. This ensures that OTT collaborations are not just viable but also profitable and sustainable.
Ultimately, middleware platforms like DSDP serve as the bridge between telcos and OTT providers, helping both sides leverage their strengths to deliver unmatched value to consumers. Telcos that invest in the right technology today will be well-positioned to lead the industry into the future, delivering more seamless, efficient, and profitable services to a growing digital audience.
