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OTT-mobile: tips from Yehuda Elmaliach, Optibase co-founder

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As 3G is already a reality in Ukraine, the next question is how to use it  for maximum profit. For example, mobile OTT, why not? Andrey Kolodyuk (AVentures Capital, Divan.TV) organized a Fireside Chat with Yehuda Elmaliach, co-founder of Optibase (NASDAQ:OBAS), the company specializing in video compression and data transfer, one of the first Israeli IPOs, he has a great deal of experience in mobile and OTT apps market. There are a few tips from Mr. Elmaliach for content providers and mobile operators. Ukraine is lucky in this regard, we have the opportunity to learn from international experience.

Mobile operators should provide special packaging. The only model consumer can understand in regards to OTT packaging, is unlimited access. Viewers don’t want to be concerned about download limits. For the best video quality, the operator has to invest in infrastructure. Operators don’t have incentive to do this just to give content providers more opportunity to earn money on advertising, as operators are just a pipe. The USA model that started last year is that content providers invest in infrastructure. HBO, and others, do this. Such giants as Facebook or Youtube are exceptions. Moreover, they are reason consumers to buy unlimited mobile internet packages. They say to the operator “Pipe, don’t complain! You make money due to us, people buy you to get us”, laughed Yehuda.
It’s important for operators to note that all services should be provided with the same speed.
Mr. Elmaliach doesn’t believe in succeeding of some kind of OTT incubator across a lot of operators. Additionally, international experience shows that there are almost no cases where an operator managed to create video platform, only media companies do that. The representatives of Kyivstar mobile operator asked to specify if there were still opportunities, but Yehuda Elmaliach insisted, normally there are not. Andrey Kolodyuk added that the only successful example of operator creating its OTT platform was China Telecom – the monopolist in the Chinese market.
Improving mobile internet gives a lot of opportunities for new OTT and other solutions, for example, creating apps for enterprises to pay for stuff using only work related things by mobile internet. Talking about Ukrainian market Andrey Kolodyuk believes it has good chances for developing OTT-mobile app.