As Web 2.0 continues to evolve, a new set of content providers has emerged and is winning consumer attention. Consumers are rapidly adopting the over-the-top (OTT) services operators such as Babelgum, Joost, Boxee and Xbox 360 have introduced, and as a result, the communications industry has seen an enormous increase in costs due to a significant jump in data traffic volumes - approximately 200% year over year. In addition, a number of the new internet applications compete directly with telecoms service, in both voice and video.

Service providers need to rapidly change their business strategy for these OTT providers. A mixed strategy of monitor, control, collaborate, and imitate will help reduce traffic volumes (-30%), lower costs (-20%), share revenues (+20%) and further extend the telco's own services. This presentation will examine major market trends, challenges, and opportunities; highlight best practices; and discuss the economic impact .