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OTT apps offer revenue opportunities to telecom operators, says WIK-BIF study

November 17, 2017

A Germany-based research and advisory institute WIK in collaboration with the Broadband India Forum (BIF) has stated that the rich interaction applications (RIA) which are commonly referred as OTT (over-the-top) apps provide opportunity to telecom service provides to up-sell data-heavy tariff plans to subscribers.

The study has also pointed that RIA are widely used with 81 per cent Indians. According to the study, the Internet-driven applications have a potential to save 803 minutes a week that amount to Rs 16,185 consumer surplus per user and Rs 4,810 consumer surplus per capita annually. Consumer surplus is an evaluation of time or money saved by using popular rich interaction functions instead of traditional communications alternatives. The study has also stated that rich interaction apps have economic impact which eventually increases with the consumers subscribing to more functions. The finding revealed that rich apps could create a consumer surplus of $98 billion in India which is equivalent to 4.3 per cent of India’s GDP of $2,264 billion as of 2016.

Further, the study pointed that that India is on a fast-track digital journey and Internet subscribers are growing exponentially, and added that digitisation and economic success of a country is linked to each other. The joint WIK-BIF initiative also recognised five Indian innovation-driven apps out of 139 worldwide. These include Nimbuzz, Hike, JioChat Messenger, Flock and Lookup.

Earlier, BIF had also submitted key recommendations to the Department of Telecommunications (DoT) for the upcoming national Telecom Policy (NTP) 2018. The forum has been harmonising all industry-wide perspectives which have become cornerstone and protecting investments in such a way that it would not become a barrier for new investors.



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