The rapid and unpredictable magnitude of growth in consumption of “Communitainment” services led by video is driving significant increases in network traffic and congestion. This phenomena will continue to pose increasing customer experience and economic challenges for facilities based service providers (SPs) and the web service providers (WSPs) that provide “over the top” services across the networks.
This fast-growing adjacent market driven by Internet based and web service providers is primarily fueled through the separation of revenue and services models (e.g. advertising supported). These services are generating significant new revenues by riding on top of service providers’ networks and are dependent on service providers’ access-based products.
For the most part, service providers are not sharing in the growth of this adjacent market and are faced with rising costs associated with the increase in network traffic and congestion. Hence, the regulatory duel.

Both parties are still standing after the firing of regulatory shots. It is time to put strategic focus on mutual long term business value creation that is consistent with the core objectives of each player and capitalizes on gaps in respective capabilities.

Simple answer to a complex challenge Should the regulators solve this problem? Or Should the SPs and WSPs adopt new collaborative business models focused on customer experience which will dictate the growth and appropriation of market value?

Despite the growing recognition and need for collaboration, the business rationale and models for potential collaboration between WSPs- and SPs are at odds, at best, are uncertain, and are viewed with a high degree of skepticism by senior executives on both sides. Finding a strategic path for these service providers to move beyond current modes of collaboration can prevent regulators from taking the fatal shot.

What are the actionable opportunities for creating greater value for customers and long-term value in collaboration? What is the quantifiable and measurable value? And, What are the unique capabilities and sources of value for a long term success in collaboration?