Factors affecting consumers' allurement towards OTT communication and impact on telecom revenue: an investigation on Robi Axiata Limited

Abstract

With the uninterruptedly changing worldwide business trend, Bangladesh telecommunication industry is going through the turmoil by OTT service providers, who are relentlessly threatening telecom business by taking revenue out of local operators’ pocket. The report focuses on establishing the case based on the continuous impact of OTT over the revenue of Robi Axiata Limited, the second largest telecom operator of Bangladesh. Throughout this report, it has been figured out that cost advantage, unique features, messaging preferences, smartphone and internet penetration are some of the dynamics responsible for consumers’ allurement towards OTT communications. Nonetheless, with the enduring shift in consumer behavior from voice call towards data based services; voice revenue and average revenue per user is slowing down, but the growth in data revenue is tremendous. In order to be the next generation telecom operator, Robi should notably shift emphasis from core telecom business to digital solutions, facilitating consumers’ digital lifestyles.