Genband, a US-based provider of networking and cloud-based solutions, has acquired Fring’s OTT mobile IP communications service.

Working across all major smartphone platforms, the white label service from the Israeli firm includes mobile group video chat, two-way video chat, voice-only calls and text chat.

Genband says the integration of Fring’s mobile solution will allow its service provider and MVNO customers to compete better against OTT players.

“Fring is one of the pioneers that helped change the way consumers communicate on-the-go and is perfectly aligned with our strategy to bring service providers rich, simple-to-use, mobile communications solutions,” said David Walsh, Genband’s chief executive.

Genband did not disclose financial details but an unnamed Reuters’ source said the purchase price was $50 million.

“This announcement really illustrates the changes taking place in the communications services business,” commented Yankee Group Research VP Declan Lonergan. “The rise of OTT apps is well documented, and so too is the challenge this poses for network operators. The good news for operators is they have several options to choose from—in addition to the ever-present Do-Nothing option.”

Lonergan claims operators can develop their own in-house OTT-style apps, like Orange (with Libon) and Telefonica (with TuGo). Operators can go down the RCS route, either with IMS-based or hosted RCS solutions. Or, another option for operators is to partner directly with the major OTT players. For example, this week in Portugal Optimus launched its youth-oriented WTF price plans that bundle free access to leading OTT apps, including WhatsApp, Facebook Messenger and BBM.

A fourth option, says Lonergan, is to work with companies like Genband/Fring to bring the best of both worlds (IP and telecom) to end-users through operator-branded OTT services. “This enables operators to get to market quickly with a proven OTT app that can be offered under their own brand. This is a valid and viable approach to enabling operators to maintain a central role in the next generation of IP-based communications services. I think we’ll see other vendors follow where Genband and Fring are leading.”