Smartphone apps floating above city with telecom towers

Is Your Mobile Carrier Obsolete? How to Thrive in the Age of OTT

Jordan Keane in Tech & Innovation December 2025 • 4 min read.

"Uncover the strategies mobile network operators (MNOs) can use to combat revenue loss from Over-The-Top (OTT) services and secure a sustainable future."

The mobile telecom industry is undergoing a massive transformation. While the number of mobile users continues to climb, mobile network operators (MNOs) are facing unprecedented challenges. The traditional revenue streams from voice calls and SMS are drying up, replaced by a surge in data traffic consumed by Over-The-Top (OTT) service providers.

OTT providers like WhatsApp and Facebook offer communication services over MNO networks for free, gradually substituting traditional carrier services. This disruption forces MNOs to reconsider their strategies and identify new revenue sources to stay afloat in an increasingly competitive landscape.

This article dives deep into the impact of OTT providers on the global mobile telecom industry. You'll discover how MNOs can adapt, innovate, and thrive in this new era by reducing operational costs and developing customer-centric strategies to win back their audience.

The OTT Invasion: Quantifying the Impact on Mobile Carrier Revenue

Smartphone apps floating above city with telecom towers

Research shows a significant hidden revenue loss for the global telecommunications industry due to the rise of OTTs. This loss is directly correlated with the evolution of OTT services, which now dominate the digital landscape. The study pinpoints SMS as the most impacted traditional service and predicts its near-total disappearance by the end of 2022.

To fully grasp this issue, let's break down the core areas affected:

LDC (Long Distance Calls): OTT apps like Skype and WhatsApp have slashed international call revenue for MNOs by offering free or low-cost alternatives.
SMS (Short Message Service): The convenience and added features of OTT messaging have rendered SMS virtually obsolete.
Voice Calls: While not declining as rapidly as SMS, traditional voice call revenue is still under pressure from OTT voice services.
Data Traffic: Although MNOs benefit from increased data traffic due to OTT usage, they struggle to effectively monetize this surge, as OTTs use their infrastructure without contributing to its cost.

The trend is clear: MNOs are investing more to support growing user numbers and traffic, but their Average Revenue Per User (ARPU) is declining. This indicates a fundamental shift in how telecom services are consumed and monetized.

Seize the Future: Recommendations for MNOs

The rise of OTT presents both a threat and an opportunity for MNOs. By understanding the changing landscape, implementing strategic changes, and prioritizing customer needs, MNOs can navigate this disruption and thrive in the digital age. It's time to take a proactive approach and reclaim your position as a vital player in the global communications ecosystem.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.30574/wjarr.2024.21.1.0113,

Title: The Impact Of Over The Top Service Providers On The Global Mobile Telecom Industry: A Quantified Analysis And Recommendations For Recovery

Subject: q-fin.rm econ.gn q-fin.ec stat.ap

Authors: Ahmed Awwad

Published: 21-05-2021

Everything You Need To Know

What are Over-The-Top (OTT) services, and how are they affecting mobile network operators (MNOs)?

Over-The-Top (OTT) services like WhatsApp, Facebook, and Netflix provide communication and media services directly to users over the internet, bypassing traditional mobile carrier networks. This affects mobile network operators (MNOs) because these services erode traditional revenue streams from services like SMS and voice calls, as users increasingly opt for the free or low-cost alternatives offered by OTT providers. While OTT services increase data usage, MNOs struggle to monetize this effectively, leading to declining Average Revenue Per User (ARPU).

Why is SMS revenue declining for mobile network operators (MNOs)?

SMS revenue is declining for mobile network operators (MNOs) primarily due to the rise of Over-The-Top (OTT) messaging services like WhatsApp and Facebook Messenger. These OTT apps offer more features, such as group chats, multimedia sharing, and sometimes even end-to-end encryption, at little to no cost to the user. This increased convenience and functionality makes OTT messaging a more attractive alternative to traditional SMS, leading to a rapid decrease in SMS usage and revenue for MNOs.

How do Over-The-Top (OTT) services impact mobile network operator (MNO) revenue from long-distance calls (LDC)?

Over-The-Top (OTT) services significantly reduce mobile network operator (MNO) revenue from Long Distance Calls (LDC). Applications like Skype and WhatsApp offer free or low-cost international calls over the internet, which bypasses the traditional long-distance calling infrastructure of MNOs. This shift to OTT voice services means users are less reliant on MNOs for international communication, severely impacting the revenue generated from these calls. The traditional charging models for long distance calls cannot compete with OTT data based charging and free calls.

What are some strategic changes mobile network operators (MNOs) can implement to address the challenges posed by Over-The-Top (OTT) services?

Mobile network operators (MNOs) need to adapt and innovate to address the challenges from Over-The-Top (OTT) services. MNOs should reduce operational costs by modernizing their infrastructure and networks. They can develop customer-centric strategies by bundling services, offering customized data plans that cater to OTT usage, and improving customer experience. Exploring new revenue streams like content delivery, IoT services, and strategic partnerships with OTT providers could allow MNOs to remain competitive and relevant.

How can mobile network operators (MNOs) benefit from the increased data traffic generated by Over-The-Top (OTT) services?

While Over-The-Top (OTT) services do not directly contribute to the cost of mobile network operators (MNO) infrastructure, MNOs can benefit from the increased data traffic in several ways. MNOs can offer tiered data plans optimized for video streaming or social media. Another possibility is to offer zero-rated data plans for specific OTT services as part of a premium subscription. MNOs could explore Content Delivery Networks (CDNs) or edge computing services to improve the delivery of OTT content, charging OTT providers for enhanced performance and network efficiency. Effectively managing and monetizing the surge in data traffic could help MNOs offset the revenue loss from traditional services.