Over The Top (OTT) Debate · Emerging OTT | Key Drivers OTT is the future service model ± Communication and media (videos/VoIP/data) OTT services rapidly expanding ± Across multiple

Over The Top (OTT) Debate: One Way Forward

Regulating ICTs Workshop

CTO, London, UK

4-8 Jul 2016

Dr Martin Koyabe Head of Technical Support & Consultancy

Commonwealth Telecommunication Organisation (CTO)

© Commonwealth Telecommunications Organisation

Emerging OTT | The Reality

• OTTs are here to stay


Emerging OTT | Key Drivers

• OTT is the future service model

– Communication and media (videos/VoIP/data)

• OTT services rapidly expanding

– Across multiple communications & digital service domain

• Availability of bandwidth capacity – High speed connections, avenue for new OTT apps

• Growth of smart phones – Due to improved mobile infrastructure & affordability

• Deployment of cloud infrastructure

– Increased mobility and brought convenience


Emerging OTT | Types [1/3]

• Voice & Messaging

– Communication o WhatsApp (~ 1 Billion users)

o Facebook Messenger (900 Million Users)

o Skype (300 Million Users)

o Viber (250 Million Users)



• Application eco-systems – Mainly non-real time

o Dropbox

o iCloud

o box

o Google Drive

o SugarSync



• Media – TV & Video/Audio (YouTube, Hulu+, Netflix, Amazon)


The “sticky effect” of OTTs

• Compatibility

- with all devices connected online



• Expansion of mobile infrastructure

– WiFi, 3G, 4G & now 5G



• Applicable on various platforms – TV, iPad, Laptop etc



• It’s free – Revenue savings to users

President Recep Tayyip Erdoğan


Understanding the IMPACT of OTT

11

How about Advantages & Disadvantages?


The impact of OTTs | Advantage

• Benefit from worldwide coverage by Internet

– quick to deploy over the Internet

• Exploit economies of scale

– cheaper with increased usage

• Exploit broadband connectivity

– pushes the demand side for broadband (data usage)

• Benefit from publicity revenues

– cost-efficient way to market a product/business

• High negotiation power towards suppliers

– in terms of revenue generation


The impact of OTTs | Disadvantage (1/2)

• Difficulties to assure end-to-end quality control

– difficult to maintain QoS across different domains

• Less advantage for proximity

– and consumer experience related requirements

• Lower capability for national dependent services

– operational model not contained within a jurisdiction

• Lack of contribution to the USF

– very difficult to collect OTT revenue towards USF


The impact of OTTs | Disadvantage (2/2)

• Revenue loss in voice and messaging services

– despite uptake of mobile handsets & SIM cards

• OTT tax evasion/avoidance

– collection over non-domicile jurisdictions is a problem

• Personal data protection and privacy issues

– hardly addressable by national regulation

• Security concerns hardly controllable

– users have no control over data collected


Are countries starting to take action?

• SA MTN and Vofacom want OTT regulated, but Cell C feels otherwise

– yet to be resolved by SA parliament

• CA vs. KFCB over regulation of Netflix

– Kenya ICT ministry reviewing previous ICT policy to address OTT issues

• UAE, Egypt & Morocco

– imposed bans on VoIP and messaging applications


The OTT debate: One way forward

• CTO has been listening to our stakeholders – especially through CTO Regulatory Round Table Sessions


CTO - OTT Study

• Objective/Aim: “to develop, based on consultations with relevant stakeholders in a number of jurisdictions, a good practice operational framework for OTTs, service providers, policy makers and regulators”


OTT study | issues to be discussed [1/2]

• Challenges of OTT Services – Licencing

– Pricing, Taxes

– QoS/QoE

– Operating Area

– Interconnection & Number Portability

– Infrastructure/Network

– Data Protection & Privacy


• Potential Impact of Unregulated OTT Services

– Security Issues

– Privacy Issues

– National Economy

– Other Challenges

• OTT Voice Service Regulation: Case Studies

– OTT Regulation Debate

– Policy on OTT Regulation

– Questions raised by CTO stakeholders

• Study Questionnaire

OTT study | issues to be discussed [2/2]


• All stakeholders (to be contacted by 10th Aug 2016)

– All CTO Members (Countries & Sectors)

– Regional bodies (e.g. EACO, SADC, ECOWAS)

– Other selected organisations/individuals

OTT Study | Next Steps

15 Jul 2016

Formulate Questionnaire

31 Jul 2016

Feedback from selected

stakeholders

10 Aug 2016

Send Questionnaire to ALL stakeholders

10 Dec 2016

Get Questionnaire back from ALL stakeholders

By/before

31 Mar 2017

Publish the Report


• Contact the CTO

– Send email to: [email protected]

• Fill in the CTO OTT study questionnaire

– Send it back to the CTO before 10 Dec 2016

• CTO will contact you when the report is published

– Receive CTO study report before 31 Mar 2017

How to participate


22

Q & A Session

Further Information Contact:

Dr Martin Koyabe Email: [email protected] Tel: +44 (0) 208 600 3815 (Off) +44 (0) 791 871 2490 (Mob)

Over The Top (OTT) Debate · Emerging OTT | Key Drivers OTT is the future service model ± Communication and media (videos/VoIP/data) OTT services rapidly expanding ± Across multiple

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