Huawei has unveiled a new product designed to help operators launch video services.
The China-based vendor’s Video-as-a-Service solution leverages its global content and application aggregation platform.
The company said operators are realising that video “is not just a value-added service on top of traditional telco services”.
Instead, it is now “fundamental” to their future digital transformation and revenue growth strategies.
But operators are encountering a number of difficulties when entering into the video market, Huawei noted, citing long implementation periods and difficulty in sourcing global content.
It claimed its new solution lowers the market entry barrier by providing a hosting business model to reduce both technical and financial concerns.
According to European Communications’ latest OTT/Digital Content survey, a lack of partnerships and rights acquisition are the two biggest challenges operators face currently.
The Huawei launch comes a day after UK operator TalkTalk unveiled a pay as you go TV service, which it said offered users the cheapest content in the UK.
Earlier this month, Netflix made a concerted effort to woo telcos as it unveiled its latest financials.
The company’s CEO said telcos can benefit from customer acquisition, upsell opportunities, lower churn and increased brand affinity by partnering with it.
However, researchers at IHS have warned operators not to become reliant on Netflix.
Huawei saw revenues at its carrier business unit grow 21 percent last year.