Spanish operator Telefónica is partnering with U.S.-based Opanga, a mobile video technology distributor, to pilot Opanga’s mobile-first video delivery platform with the country’s consumers. Opanga’s solution will enable Telefónica to gauge subscribers’ reactions to the mobile video services that it offers. “We expect Opanga’s technology will surprise our consumers with a completely new level of mobile video consistency and speed,” said Juan Ramón Martín, Customer Experience Manager at Telefónica Spain.
According to recent reports, mobile video is expected to account for a third of global mobile data traffic by 2016. By that time, at least 40 percent of smartphone owners will use streaming mobile video services. YouTube has been the main platform for video consumption, but in 2014 global mobile video viewing on Facebook increased by 75 percent from the previous year. While reports have indicated some deviation from this level of digital video viewing in some Western European countries, Spain shows signs that support the increased viewing trend. For example, in a comparison study that was carried out by the U.K. communications regulator Ofcom in October 2014, it was reported that 70 percent of internet users in Spain watch TV programs digitally, with 55 percent watching them on mobile devices.
In Spain’s highly competitive mobile market, the major operators are constantly devising strategies to help them increase or keep their position on the market. In addition to pricing offers affordably and to creating options that customers want, mobile operators have used the quality of their services as a differential in retaining and attracting customers. Mobile video services has emerged as a new area of differentiation for MNOs, and partnering with companies such as Opanga will enable them to provide such services at the highest level. It is also economically important for operators to offer these services without a huge increase in capital expenditures and without using a tremendous amount of spectrum. Telefónica’s ability to minimize these operating costs via Opanga’s platform will give it a higher revenue intake on its mobile video offerings.
The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: Click here.
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