Tag Archives | platform economics
Economics, Industry and trade, Information and Communications Technology
The spillover effects of digital platforms
“Over-the-top” (OTT) service providers are referred to as so because they allegedly ride exclusively on top of the infrastructure laid by telecommunications service providers. Hidden behind the term OTT is the notion that such providers do not invest in the network infrastructure yet provide the same services as telecommunications service providers. While this may seem intuitive to some through a cursory examination of the marketplace, what such assertions fail to consider are the numerous “edge-of-the-network” investments by OTT service providers as well as the massive efficiency, flexibility, and propensity-to-scale inherent in OTT business models.
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