Even as operators around the globe are recording increased revenues from mobile data services, US-based Telcordia warns, this trend distracts from serious, long-term challenges that those operators now face, including unsustainable all-you-can-eat pricing, dwindling profit margins, and the threat of “over-the-top” (OTT) video and content services from third parties.

“The popularity of video and other third-party OTT services are breaking mobile broadband networks and business models because they siphon off revenue while adding to the network’s workload,” said Pat McCarthy, Vice President, Marketing, Service Delivery Solutions, Telcordia. “Operators should use this problem as an opportunity to transform themselves from dumb pipes into value-added players that capture revenue from OTT personalization services.”