Can WebRTC defeat the OTT?

Jun 22, 2014

Fixed line telecom and cable providers have been faced with the problem of being a ‘dumb pipe’ for some time now, while mobile carriers have seen profit margins grow. But in an age of 4G LTE connections, mobile operators are now experiencing the same set of problems of fixed-line providers – OTT services can now be offered to a high enough standard to eat into the profits of the core voice product.

3G connections facilitated OTT short messaging apps like WhatsApp, which almost singlehandedly killed the SMS cash cow. OTT talk and video services such as Skype and Viber are now having a same effect with 4G connections, particularly in terms of devouring the market share for long distance and international calls.

Previous attempts by carriers at combatting these OTT services have failed because they relied on the use of native applications and proprietary protocols. Why would customers use an app that would only allow them to contact other people on the same network when there is already a service that anyone can access regardless of network?

WebRTC is different in that it is built on open protocols and APIs and can run in the browser – there is no need to download and install another app to run it. Depending on how the WebRTC deployment is configured, the person you wish to communicate to won’t need an app or an account to speak with you – all that is required is a link for WebRTC to open in their browser. This makes WebRTC more open and accessible than even the most widely used OTT voice and video apps and services.

The potential of WebRTC as a unified communications (UC) platform is enormous. It can easily be integrated by carriers into new or existing customer cloud services to add further value, potentially create new revenue streams or to simply offer an alternative to OTT services. Above all, it offers choice to operators and the ability to add innovative new services on top of their existing offerings, without the need to replace an entire communications ecosystem.

For WebRTC to succeed, all – or at least a majority of operators – need to embrace the open standards that it is built around. Without cooperation or standardisation, carriers will inevitably develop siloed apps or services that will offer customers no incentive to move off the OTT services in the long run.

4G mobile connections are still very much in the minority, so the battle hasn’t been lost yet. 3G OTT voice and video is still too flaky for users to have totally abandoned the core voice product, so carriers still have some time to combat the growth to offer an alternative.

Our newest product, OX Messenger, built on the WebRTC framework from Voiceworks, is a good example of a UC solution built on open standards. Using standards such as SIP, XMPP and WebRTC, OX Messenger works in most browsers without requiring any plugins. Additionally, because of the use of SIP, OX Messenger can integrate with existing PBX and UC systems in the customers premise, allowing the customer to pick up and answer regular PBX voice and video calls straight from OX App Suite.

OX Messenger is scheduled to be launched at our next annual customer and partner conference, OX Summit, in Munich on September 18. Don´t miss this opportunity and learn how to provide the next level of Cloud services with an open and trusted partner ecosystem.

About the author

Rafael Laguna

Rafael Laguna

Co-founder and former CEO of Open-Xchange

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