OTT opportunities emerge as 2Mbps+ broadband subs set to double by 2017
Most fixed broadband plans now include unlimited usage, unlike mobile packages, which are typically “capped” – an issue that still slows down OTT usage over mobile broadband. Farncombe compared fixed and mobile broadband costs by looking at how much each charged ‘per Mbps’, taking into account actual bitrates and mobile usage caps and found that on average mobile broadband users would have to cap their monthly use at 1-3Gb to obtain the same “per Mbps” price-performance as a fixed plan.
Similar results were derived across all six markets, demonstrating that despite the significant increase in mobile broadband users – which we expect to reach nearly 0.5 billion subscribers by 2017 with a CAGR of 37% across the six countries – fixed broadband remains as a more cost-effective choice for video use. As competing two-way platforms will require substantial up-front investment, especially for countries with challenging landscapes like India, Indonesia and the Philippines, OTT platforms can offer significant opportunities for players in these regions to reach audiences and capture market share more cost-effectively and with tighter launch-schedules.
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