Impact of Over-the-Top (OTT) Services on the Telecom Companies in the Era of Transformative Marketing

  • Muhammad FarooqEmail author
  • Valliappan Raju
Original Research


Due to digitalization today, we are more connected than ever before in human history. Access to the Internet has increased from 16 million in 1995 to 4157 million users by the end of December 2017. The industry which helped humanity connected and made the world a global village is the telecommunication industry. However, today the telecom companies are facing revenue losses; for instance, revenue of value-added services of telecom companies in Pakistan has reduced from Rs 5861 million in 2012 to 236 million by the end of 2017. Similarly, because of WhatsApp, Skype and Messenger usage, the long-distance call and SMS revenue of telecom companies in Pakistan have reduced from Rs 47,969 million in 2008 to 19,555 million at the end of 2017. With the empirical evidence from Pakistan and the literature from all over the world, this overview research paper summarizes the issues of the telecom sector and suggests a way forward to help the telecom companies to come out of this situation. For review paper, official telecom regulatory reports and GSMA reports have been referred. This study concluded that, on the one hand, telecom company’s revenue is decreasing and, on the other hand, it is bringing enormous opportunities to the companies. Telecom companies can get the benefit of changing customer preferences’ by understanding customers’ requirements, producing and selling Internet and digital value-added products and services in parallel with traditional telephony services


Customer preferences Digitalization Telecommunication Transformative Marketing Over the TOP (OTT) 


Compliance with Ethical Standards

Conflict of interest

The authors whose names are listed immediately below certify that they have no affiliations with or involvement in any organization or entity with any financial interest (such as honoraria; educational grants; participation in speakers’ bureaus; membership, employment, consultancies, stock ownership, or other equity interest; and expert testimony or patent-licensing arrangements) or non-financial interest (such as personal or professional relationships, affiliations, knowledge or beliefs) in the subject matter or materials discussed in this manuscript.


  1. Agrawal, U., Mangla, A., & Sagar, M. (2016). Company-cause-customer: interaction architecture. Global Journal of Flexible Systems Management, 17(3), 307–319.CrossRefGoogle Scholar
  2. Akamai. (2013). The state of the internet 1ST QUARTER, 2013 REPORT (Vol. 6). Retrieved from Accessed 07 Aug 2018.
  3. Amin, S. M., & Horowitz, B. M. (2008). Toward agile and resilient large-scale systems: Adaptive robust national/international infrastructures. Global Journal of Flexible Systems Management, 9(1), 27–39. Scholar
  4. Borowski, J., & Khurana, B. S. (2019). Technology transformation: Reinvent the network and change the way of working, Now! In Future Telco (pp. 359–369).
  5. Buzdar, M. F., Janjua, S. Y., & Khurshid, M. A. (2016). Customer-based brand equity and firms’ performance in the telecom industry. International Journal of Services and Operations Management. Scholar
  6. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319. Scholar
  7. Eberhard, U., & Heuermann, A. (2019). Open access via mobile wholesale network: A new approach to broadband deployment: The case of Mexico. In Future Telco (pp. 263–271).
  8. Erik, H. (2014). Telecom firms face $386 billion in lost revenue to Skype, WhatsApp|Fortune. Retrieved September 14, 2018, from
  9. Farooq, M., & Jabbar, Z. (2014). Role of Word of Mouth in building CBBE. Elixir Marketing Management, 73, 26443–26447.Google Scholar
  10. Farooq, M., Muhammad, S., Raju, V., Kalimuthu, K. R., & Qadir, A. (2019). Measuring and comparing the desired and actual service quality of Pakistan international airline. The Journal of Social Sciences Research. Scholar
  11. Farooq, M., Zareen, Z., Younas, W., Khalil-Ur-Rehman, K., & Yasmin, N. (2018). Impact of digitalization on Holy Quran Readers; experience and expectations. IOSR Journal of Humanities and Social Science (IOSR-JHSS), 23(7), 59–67. Scholar
  12. Ganuza, J. J., & Viecens, M. F. (2014). Over-the-top (OTT) content: implications and best response strategies of traditional telecom operators. Evidence from Latin America, 16(5), 59–69. Scholar
  13. Glohr, C. (2019). Telco focus on business customers. In Future Telco (pp. 299–307).
  14. Grineisen, J., & Rehme, G. (2019). Evolution path: The telco-centric digital ecosystem. In Future Telco (pp. 309–318).
  15. Gupta, S., Tyagi, K., & Upadhyay, R. (2018). Twilight of voice, dawn of data: The future of telecommunications in India. Decision, 45(2), 161–183. Scholar
  16. Heilen, T. (2019). Becoming faster and more direct: Telco carrier product management turns towards customers, partners and colleagues. In Future Telco (Vol. 8, pp. 187–194). Pro Rhetoric, LLC.
  17. Heinemann, J., Platzen, O., & Schiefer, C. (2019). Successful Navigation through digital transformation using an innovation radar. In Future Telco (pp. 155–164). Meredith Corporation.
  18. Hong, C.-G., & Dietze, C. (2019). Enabling digital excellence through business process management and process frameworks. In Future Telco (pp. 341–348).
  19. Khare, S. B. (2014). Assessment of elements of flowing stream strategy crystal: A study in the context of telecom service sector in India. Global Journal of Flexible Systems Management, 15(4), 327–343. Scholar
  20. Korzunowicz, K. (2019). DevOps telco: An oxymoron? In Future Telco (pp. 99–110). Meredith Corporation.
  21. Krämer, C. (2019). Success with partnering: Results of an international study. In Future Telco (Vol. 67, pp. 197–210). China Today.
  22. Krüssel, P., & Göbel, F. (2019). Successful Positioning of Network Operators in the Digital Age. In P. Krüssel (Ed.), Future Telco (pp. 1–24). Cham: Springer. CrossRefGoogle Scholar
  23. Kumar, V. (2018). Transformative marketing: The next 20 years. Journal of Marketing, 82(4), 1–12. Scholar
  24. Lukowski, G., Rauch, A., & Rosendahl, T. (2019). The virtual representation of the world is emerging. In Future Telco (pp. 165–173). Meredith Corporation.
  25. Meyer, R. (2018). Reflections on “Transformative Marketing: The Next 20 Years”. Journal of Marketing, 82, 13–14. Scholar
  26. Nathan, M. (2018). Digital in 2018: World’s internet users pass the 4 billion mark—We Are Social USA. Retrieved September 14, 2018, from
  27. Nooren, P., Leurdijk, A., & van Eijk, N. (2012). Net neutrality and the value chain for video. Info, 14(6), 45–58. Scholar
  28. Obernolte, C., Hauk, J., & Aumann, C. (2019). How carriers can use protection services to safeguard the digital lives of their customers. In Future Telco (pp. 285–297).
  29. Pick, J. B., Gollakota, K., & Singh, M. (2014). Technology for development: Understanding influences on use of rural telecenters in India. Information Technology for Development. Scholar
  30. PTA. (2019). Telecom indicators. Retrieved October 12, 2018, from
  31. Razzak, M. A., Al-Kwifi, O. S., & Ahmed, Z. U. (2018). Rapid Alignment of Resources and Capabilities in Time-Bound Networks: A Theoretical Proposition. Global Journal of Flexible Systems Management, 19(4), 273–287.CrossRefGoogle Scholar
  32. Regina, R. (2017). OTT services threaten network operators’ core revenues|ITWeb. Retrieved September 14, 2018, from
  33. Reith, L. (2019). Paradigm Shift! The Path to Brutal Automation. In Future Telco (pp. 111–129). Evening Standard Limited.
  34. Schmitz, M., Stummer, C., & Gerke, M. (2019). Smart Automation as enabler of digitalization? A Review of RPA/AI Potential and Barriers to Its Realization. In Future Telco (pp. 349–358).
  35. Shalender, K., & Yadav, R. K. (2019). Strategic flexibility, manager personality, and firm performance: The case of Indian Automobile Industry. Global Journal of Flexible Systems Management, 20(1), 77–90. Scholar
  36. Sharma, A., Medudula, M. K., & Patro, S. (2015). Marketing flexibility interaction matrix and consumer clusters preference criteria in telecommunication Sector. Global Journal of Flexible Systems Management, 16(3), 295–307. Scholar
  37. Sharma, M. K., Sushil, & Jain, P. K., (2010). Revisiting flexibility in organizations: exploring its impact on performance. Global Journal of Flexible Systems Management, 11(3), 51–68.CrossRefGoogle Scholar
  38. Sushil., (2016). Strategic Flexibility in Ecosystem. Global Journal of Flexible Systems Management, 17(3), 247–248.CrossRefGoogle Scholar
  39. Steingröver, M., Cardozo Larrea, E. B., & Zhelev, N. (2019). The rise of OTT players: What is the appropriate regulatory response? In Future Telco (Vol. 45, pp. 241–249).
  40. Sujata, J., Sohag, S., Tanu, D., Chintan, D., Shubham, P., & Sumit, G. (2015). Impact of Over the Top (OTT) services on telecom service providers. Indian Journal of Science and Technology, 8(S4), 145. Scholar
  41. Sushil,. (2015). Strategic flexibility: The evolving paradigm of strategic management. Global Journal of Flexible Systems Management, 16(2), 113–114. Scholar
  42. Varadarajan, R. (2018). A Commentary on “Transformative Marketing: The Next 20 Years”. Journal of Marketing, 82(4), 15–18. Scholar
  43. Venkatesh, F. D. D. (2000). A theoretical extension of the technology acceptance model: Four longitudinal field studies. Management Science Publication, 46(2), 186–204. Scholar
  44. Venkatesh, V., & Bala, H. (2008). TAM3 technology acceptance Model 3 and a research agenda on interventions. Decision Sciences, 39(2), 273–315. Scholar
  45. Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425. Scholar
  46. Vidyarthi, R., & Singh, D. (2011). Clustering value drivers of Indian telecom customers-pathway for effective strategy formulation. Global Journal of Flexible Systems Management, 12(3–4), 53–63. Scholar
  47. Weber, D., Schilling, C., & Wisselink, F. (2019). Low power wide area networks: The game changer for the internet of things. In Future Telco (Vol. 19, pp. 175–185). University of San Diego, School of Law.
  48. Wisselink, F., & Schneider, D. (2019). The artificial intelligence challenge: How Telcos can obtain a grand prix for insights monetization. In Future Telco (pp. 329–337).

Copyright information

© Global Institute of Flexible Systems Management 2019

Authors and Affiliations

  1. 1.Limkokwing University of Creative TechnologyCyberjayaMalaysia

Personalised recommendations