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Why Telcos Want Fair Share from OTT Apps in Bundled Plans: Mint Explainer

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In Short:

Telecom companies are offering bundled tariff plans that include access to content-streaming apps, generating more revenue. For consumers, these plans offer convenience with one bill for mobile services and content subscriptions. Telecom providers argue they should receive a fair share of OTT platforms’ revenues due to the network investments required for streaming. This debate is ongoing globally, with South Korea setting a precedent for revenue-sharing agreements.


Telecom Operators & OTT Platforms: The Bundled Debate

In the bustling city of New Delhi, telecom operators are all the buzz with their enticing bundled tariff plans that include access to popular content-streaming apps. But what’s the deal with these bundled plans and why are they becoming so popular?

Why are telecom service providers bundling OTT packs in your monthly tariff plans?

Well, it’s all about the extra revenue for telecom players. With the increasing demand for data-heavy streaming, users are inclined to upgrade to higher-paying plans for more data. This not only boosts the operators’ income but also enhances consumer stickiness and attracts new customers looking for simplicity in managing subscriptions.

Does it benefit consumers?

Absolutely! For consumers, these bundled plans offer sheer convenience. They get everything in one place – mobile services, internet, and all their favorite OTT subscriptions in a single bill. Plus, some bundled plans can even be cheaper than subscribing to mobile data and OTT services separately, thanks to negotiated bulk discounts passed on to customers.

But does this not dilute telecom firms’ demands for a fair share of OTT platforms’ revenues?

While telecom operators are already getting a share of OTTs’ revenue through bundled plans, the debate rages on. Industry experts argue that telecom firms deserve a fair share of OTT revenues for their massive investments in building and upgrading networks to support seamless streaming experiences. It’s a global conversation that’s gaining momentum, with countries like South Korea setting a precedent with revenue-sharing agreements.

So, as the telecom and OTT worlds collide in the digital arena, the bundled debate continues to stir discussions and shape the future of content streaming and telecom partnerships.

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