Over The Top (OTT) Debate: One Way Forward
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1 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)
2 Emerging OTT The Reality OTTs are here to stay
3 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
4 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)
5 Emerging OTT Types [2/3] Application eco-systems Mainly non-real time o Dropbox o icloud o box o Google Drive o SugarSync
6 Emerging OTT Types [3/3] Media TV & Video/Audio (YouTube, Hulu+, Netflix, Amazon)
7 The sticky effect of OTTs Compatibility - with all devices connected online
8 The sticky effect of OTTs Expansion of mobile infrastructure WiFi, 3G, 4G & now 5G
9 The sticky effect of OTTs Applicable on various platforms TV, ipad, Laptop etc
10 The sticky effect of OTTs It s free Revenue savings to users President Recep Tayyip Erdoğan
11 Understanding the IMPACT of OTT How about Advantages & Disadvantages? 11
12 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
13 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
14 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
15 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
16 The OTT debate: One way forward CTO has been listening to our stakeholders especially through CTO Regulatory Round Table Sessions
17 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
18 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
19 OTT study issues to be discussed [2/2] 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
20 OTT Study Next Steps By/before 10 Aug 2016 Send Questionnaire to ALL stakeholders 15 Jul 2016 Formulate Questionnaire 31 Mar 2017 Publish the Report 31 Jul Dec 2016 Feedback from selected stakeholders Get Questionnaire back from ALL stakeholders 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
21 How to participate Contact the CTO Send to: 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
22 Q & A Session Further Information Contact: Dr Martin Koyabe m.koyabe@cto.int Tel: +44 (0) (Off) +44 (0) (Mob) 22
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