How Over-The-Top Messaging Apps are Destroying Operator Messaging

Mobile messaging apps such as WhatsApp, LINE and KakaoTalk have disrupted the operator messaging market, destroying billions in consumer spend. These apps are reflective of the nature of the app ecosystem – upending existing business models – and replacing the lost revenue with only a fraction of pre-existing revenue – while trying to drive revenue from other means. This report looks at the evolution of over-the-top (OTT) messaging apps and what their success means for other revenue streams. This report also outlines key strategies operators can implement to defend against OTT messaging providers, building on our August 2012 report "Operator Strategies To Combat OTT Communication Providers".

Mobile messaging apps such as WhatsApp, LINE and KakaoTalk have disrupted the operator messaging market, destroying billions in consumer spend. These apps are reflective of the nature of the app ecosystem – upending existing business models – and replacing the lost revenue with only a fraction of pre-existing revenue – while trying to drive revenue from other means. This report looks at the evolution of over-the-top (OTT) messaging apps and what their success means for other revenue streams. This report also outlines key strategies operators can implement to defend against OTT messaging providers, building on our August 2012 report "Operator Strategies To Combat OTT Communication Providers".