Telestax Blog

CPaaS Competitive Analysis: CSP or OTT?

Enterprises should consider multiple sources of CPaaS competitive analysis, beginning with whether a CSP or OTT solution is the right fit.

Many organizations from small businesses to large enterprises can benefit from communications platform as a service (CPaaS) enablement. Capabilities like intelligent appointment scheduling, SMS for productivity platforms, and two-factor authentication (2FA), can be delivered from over-the-top (OTT) vendors like Twilio, Nexmo, and others. In many cases, however, communications service providers (CSPs) offer superior CPaaS services at a lower price point and it pays to compare.

Quality of Service

Voice quality metrics like answer success ratio (ASR), average call duration (ACD), and post dial duration (PDD) are critical to business success.

CSP – When initiating calls using the service provider you can expect guaranteed quality. Since calls are sent via a zero-hop interconnect, there is no aggregator in the middle and PDD will be lower. ASR and ACD are not typically an issue.

OTT – Because the OTT vendor does not own the connection, there is no specific guarantee of quality. Low ASR and ACD issues are commonly caused by aggregators mixing routes or having limited capacity.

Delivery Rate

CSP – Service providers have higher delivery rates as they control the traffic-blocking filters that make decisions as to which messages to pass and which are blocked. Once service provider terms are set, expect no surprises or delivery issues for SMS traffic.

OTT – OTT vendors do not have control over network filters or traffic blocking. Delivery rates may vary.

Accountability & Diagnostic Control

CSP – When it comes to real-time communications, support and data privacy are critical. Service providers have a proven end-to-end control over quality and privacy as well as local support teams that can come to the rescue when help is needed.

OTT – OTT vendors cannot provide end-to-end quality or privacy guarantees.

Low Price for Full Features

CSP – Save money by buying from the source, since the CSP owns the network and the subscribers to whom you are terminating traffic.

OTT – Purchasing the connectivity from the CSP typically requires the OTT vendor to mark up their rates to maximize profits.

Long Term Sales Relationships

CSP – Service providers invest in sales resources to meet enterprise customer needs and build relationships on the ground in order to better help businesses utilize CPaaS to its full potential.

OTT – OTT vendors have limited customer service resources.

As enterprises continue to capitalize on the value of CPaaS, it is important to consider the many options available. If you are a provider interested in adding CPaaS capabilities to your services, contact for more information – or to schedule a demo today.

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