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Mobile operators strategize to compete with OTT services 08 December 2017

Telecom companies have been foraying into the OTT space off late, but have been facing steep competition from existing streaming giants in the market. Although there are no entry barriers, cash-rich companies like Netflix and Amazon can really take new entrants on a ride.

In a recent discussion between Itel.am with Armenia’s three major mobile operators – Beeline, VivaCell-MTS, and Ucom; they commented on their strategies for tackling the challenges from the OTT services and solutions and progress towards positive cash flow.

Beeline stated that competition with OTT services is common for all telecommunication companies worldwide. At the level of the company, Beeline develops new services and moves towards digitization; and offer services that are more convenient and simple for the subscribers offering multiple service packages at affordable prices.

VivaCell-MTS thinks the impact of OTT services on the telecommunications sector is a global process. Innovative approaches and solutions counterbalance the mentioned influence. Their strategy is to skim additional profitability out of their plans.

Looking at the competition, the company plans to apply innovative solutions and new business processes.

Ucom, interestingly, is the only telecommunications company in the country, which has improved its turnover in comparison to the previous years.  

The developments and transformations in international telecommunications market have also influenced Ucom’s decisions and strategic steps. Last year Ucom presented its U!Pay virtual wallet, MediaRoom mobile television, U!Cloud solutions, etc.

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