The rapid development of smartphones and the emergence of budget-friendly smartphones is making over-the-top (OTT) platforms a necessity for smartphone users.
Telecom companies are forming new strategies to accomodate the shift in consumer behavior, targeting end users who own smartphones with internet access. In Brazil, aggressive operators like TIM Brasil and Oi SA (BVRJ: OIBR3) announced the discontinuation of long-distance calling fees and agreed to equal the calls rates. With the move, both companies hope that the customers will shift their plans from multiple SIM cards to only one.
Another OTT app, WeChat, owned by Chinese Tencent Holdings Ltd (HKSE: 0700), provides text messaging, hold-to-talk voice messaging, sharing of photographs and videos as well as other communications features, and is gaining the attention of telecom companies as it has the potential to cause massive smartphone services expansion. As of September 30, 2016, WeChat had millions of subscriptions outside China.