Embracing OTT operators to rearrange video services

In the face of the strong impact of OTT video, telecom operators relied on their attitudes and re-aligned the video service market.


In fact, telecom operators have always attached great importance to video services and IPTV is one of them. However, after the launch of the carrier's video strategy business, the company encountered multiple challenges. The development of users was unsatisfactory, and it became a telecom operator to promote broadband value-added services.

In contrast, since the OTT video was born in 2013, it has invaded users with an irresistible trend, changing the user's video viewing habits. The US Play House of Cards is the masterpiece of the OTT video, which in the first quarter of the broadcast brought more than 3 million users to Netflix.
This scenario makes telecom operators quite embarrassing. After much thought, operators decided to embrace OTT in a more active and open manner. In the first half of this year, China Telecom launched “Yue Me” and at the same time set up the Smart Home Alliance to try to change the passive development of IPTV business.

From a global perspective, traditional mainstream telecom operators are upgrading video service offerings through mergers and acquisitions. Vodafone, for example, purchased KDG, the largest radio and television operator in Germany, for $8.5 billion last year. This year it also acquired Spanish radio and television operator ONO. In the future, it will also conduct a series of acquisitions to improve the market layout.

"Video traffic will dominate the entire network, and operators' transformation is an inevitable trend. In the future, the boundaries between telecom operators and broadcasters will become more and more blurred. Operators after convergence will be able to provide voice, video and broadband access, etc. All kinds of services. Operators without this capability will not be able to survive in the market,” said Tang Xiaoguang, vice president of Huawei's digital business product line and general manager of the Digital Home Area, in an interview with the Communications Industry News.

In the first half of this year, Huawei cooperated with China Telecom Tianyi Video Base, jointly with Youku, and released a high-profile "IPTV + OTT" set-top box - Huawei Wyatt, and put forward the "content aggregation" strategic goal. Jointly established Youku Tudou, Guofangfang and Unity. The TV Entertainment Alliance (TEA) has demonstrated its ambition in the video market.

OTT, cloud is changing video

In the foreseeable future, video traffic will account for more than 80% of the overall network traffic. "The video service will become the operator's basic business." Tang Xiaoguang said.

In his view, the video business has undergone three stages of change. The first phase is the transition from analog to digital; the second phase is the leap from digitization to IPization. This phase started in 2003 and ended in 2012; the third phase is the popular OTT video today. .

The acceleration of cloud computing affects the development of the video industry. “We used to think that the video industry may be a relatively small industry affected by cloud computing, but now we have found that its impact is far faster than we expected.” Tang Xiaoguang told reporters that in the second half of this year, all terminal manufacturers’ equipment is Will support software-based codec.

From SD to HD evolution, content took 4 years (2006 to 2010) to mature, and the terminal took 7 years to gradually mature. "From high definition to 4K will also follow this rule, and perhaps faster." Tang Xiaoguang told reporters that 2014 can be seen as the first year of 4K, 2018 is expected to complete the conversion of high-definition to 4K content industry chain.

Make video ubiquitous

On the one hand is the opportunity - video is everywhere, on the one hand is the challenge - strong OTT video struck. How do telecom operators respond? “Transformation is the key.” As Tang Xiaoguang previously stated, telecom operators must have the ability to provide both voice and video services.

As the best partner for the transformation of operators, Huawei proposes a video ubiquitous (video everywhere) strategy.

"This strategy is to help operators realize video@home, video@move and video@enterprise, and work together with partners to build a video industry chain, so that video becomes part of people's lives and work." Tang Xiaoguang said.

Huawei's IP Video Solution 2.0 released at the 2014 International Broadcasting Exhibition (IBC) in Amsterdam, The Netherlands, has become an important part of Huawei's video ubiquitous strategy.

It is understood that this solution helps operators' video services quickly upgrade from current IPTV to video everywhere by providing more innovative services and new user experiences.

"2.0 Using a Converged Platform to Seamlessly Support IPTV, OTT, Hybrid (DVB), and eMBMS, Helping Operators Rapidly Deploy Video Services in Multiple Network Environments, and Realize Service Collaboration in Multiple Networks, Realizing a Platform to Support Video Business is everywhere," said Tang Xiaoguang.

In response to the trend of cloud computing, Huawei's IP video solution 2.0 adopts cloud technology and has released a new user experience of “video magazine”, completely subverting people’s traditional ways of watching TV. "People can watch TV like a book," said Tang Xiaoguang.

Of course, there are 4K. Tang Xiaoguang told reporters that Huawei completed the integration with the industry's leading manufacturer Harley and Envivo in the 4K next-generation encoder field, and it firstly supported the use of 4K content once injecting into multiple terminal devices.

Based on video, operators can build smart homes based on their network strengths and strong user groups, allowing more traffic to be converted into money.

Polymerization is the key
<br> <br> video, content is king.

Huawei clearly recognizes that relying solely on the strength of operators or one vendor cannot provide users with more diverse content and meet the differentiated needs of users. "We understand the importance of content aggregation," said Tang Xiaoguang.

In the first half of the year, Huawei and Youku Tudou Group, Guangdong, and Unity launched the “TV Entertainment Alliance,” the TEA Alliance, forming a “License + Game + Content + Terminal” line-up, with the first 10 members joining the company, covering licensing Game and video content are provided, from the hardware to the chip's industrial chain.

“The mission of the TEA Alliance is to attract partners through an open attitude and model, and to jointly expand and strengthen the home entertainment industry.” Tang Xiaoguang told reporters, “At the same time, Huawei announced China Unicom’s box in the first half of the year and also hopes to build an open platform. For operators to quickly aggregate more industry chain partners."

At the same time, Huawei has established eight major hosting centers around the world, and deployed operational teams to achieve the convergence and operation of global content and services. Tang Xiaoguang introduced that at present, the Hosting Center has aggregated 5,000 Android applications and 3,000 games and more than 20,000 titles of music, video, and comics, and has deployed full-time operating teams in more than 40 countries around the world.

More importantly, Huawei also very much agrees with the industry's protection of video copyrights. "Only by truly protecting those people who invest in creating high-quality content, the video industry can really develop into good." Tang Xiaoguang said.

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