The number of telecommunication companies is also rising as OTT voice services become more popular, creating a dense business ecosystem. Big names such as Zoom and WhatsApp are competing, but they also compete with traditional telecom providers. On average, WhatsApp has more than 2 billion users, and for numerous users across the globe, it is their go-to means of communication.
On the contrary, traditional telecom providers are struggling to retain their customers. This is true as consumers have moved from conventional voice services to OTT due to their added features and low prices, causing a substantial hit on revenue. Younger generations are the most affected by this trend due to their demand for affordability and convenience.
Telecom giants like Verizon are now forced to rethink their strategies in light of this shift. Many are combining their services with OTT offerings or investing in their own digital platforms to remain competitive. For example, AT&T has integrated HBO Max into its mobile plans, recognizing the need to provide additional value beyond traditional voice services.
Furthermore, this competition is not just limited to established players; new entrants continually emerge with innovative business models that threaten to disrupt the status quo. Discord can be seen as a clear example of a company that managed to carve out a niche by offering free voice and video chat services geared towards gamers, further fragmenting the market and appealing to specific user groups.
The competition is always on because each player will always want to come up with a superior product to get more users. For that reason, it is now a requirement for telcos to adopt more innovative solutions to match better user needs, such as the adaptation of 5G technology.