Over The Top (OTT) Study: Consultation to Understand the Dynamics of OTTs. Shola Taylor Secretary-General, CTO

Transcription

1 Over The Top (OTT) Study: Consultation to Understand the Dynamics of OTTs Shola Taylor Secretary-General, CTO

2 Emerging OTTs Reality Check!! OTTs are here to stay

3 Emerging OTTs Reality Check!! OTTs have also created innovative disruption

4 Emerging OTTs Key Drivers OTT is the future service model Communication and media 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 Easily affordable and improved mobile infrastructure Deployment of cloud infrastructure Increased mobility and brought convenience

5 Emerging OTTs 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)

6 Emerging OTTs Types [2/3] Application eco-systems Mainly non-real time o Dropbox o icloud o box o Google Drive o SugarSync

7 Emerging OTTs Types [3/3] Media TV & Video/Audio (YouTube, Hulu+, Netflix, Amazon)

8 The sticky effect of OTTs Compatibility - with all devices connected online

9 The sticky effect of OTTs Expansion of mobile infrastructure WiFi, 3G, 4G & now 5G

10 The sticky effect of OTTs Applicable on various platforms TV, ipad, Laptop etc

11 The sticky effect of OTTs It s free Revenue savings to users

12 Understanding the IMPACT of OTT How about Advantages & Disadvantages? 12

13 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

14 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

15 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

16 Are countries starting to take action? Net neutrality vs. OTT services Indian government formed a committee on Net neutrality including OTTs» Encourages growth of OTTs and removal of any impediments» Messaging OTT aps should not be interfered through regulation» VoIP OTT communications services, there exists a regulatory arbitrage

17 Are countries starting to take action? SA MTN and Vodacom want OTTs regulated, but Cell C feels otherwise yet to be resolved by SA parliament

18 Are countries starting to take action? UAE, Egypt & Morocco imposed bans on VoIP and messaging applications

19 The OTT debate: One way forward CTO has been listening to ALL our stakeholders Most recently at the CTO ICT Ministerial Forum, London (2016)

20 CTO - OTT Study Objective/Aim: to better understand, based on consultations with relevant stakeholders in a number of jurisdictions, the market dynamics and policy and regulatory challenges of Over- The-Top (OTT) services

21 OTT study issues discussed [1/2] Challenges of OTT Services Licencing Pricing, Taxes QoS/QoE Operating Area Interconnection & Number Portability Infrastructure/Network Data Protection & Privacy

22 OTT study issues 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

23 Survey Structure & Methodology This OTT study is survey-based, and as such, appropriate questionnaires were developed requiring either Structured (closed) or Non-structured (open ended) responses from four (4) broad categories of stakeholder groups (see figure below) This category of stakeholders include consumers of Over- The-Top Services and representatives of Civil Society & Consumer Advocacy Groups. Sector 4 Consumers (End- Users), Civil Society & Advocacy Groups Sector 1 Government & Regulators This category of stakeholders includes representatives of Governments, Policy Makers, Regulators, Competition Authorities, and Data Protection Authorities and related Entities. This category of stakeholders includes representatives of Governments, Policy Makers, Regulators, Competition Authorities, and Data Protection Authorities and related Entities. Sector 3 OTT Service Providers, Vendors, and Content & Application Providers Sector 2 ISPs, Telecom, Broadcast & Other Network Operators This category of stakeholders include representatives of Mobile & Fixed Network Operators, Internet Service Providers (ISPs), Broadcasting Networks & other Network Operators. 23

24 Summary of Responders The received responses from nearly 32 countries around the world, which included both Commonwealth & Non-Commonwealth Countries 23 Responded 28.4% Sector 4 Consumers (End- Users), Civil Society & Advocacy Groups Sector 1 Government & Regulators 38 Responded 46.9% 9 Responded 11.1% Sector 3 OTT Service Providers, Vendors, and Content & Application Providers Sector 2 ISPs, Telecom, Broadcast & Other Network Operators 11 Responded 13.6% 24

25 Summary of Responders The received responses from nearly 32 countries around the world, which included both Commonwealth & Non-Commonwealth Countries Target 37 Response Sector 1: Government, Regulators & Policy Makers Sector 2: ISPs, Telecom, Broadcast & Other Network Operators Sector 3: OTT Service Providers, Vendors, and Content & Application Providers Sector 4: Consumers (End-Users), Civil Society & Advocacy Groups 25

26 Some Responses [1/2] Q) Do you feel there is a need to develop a regulatory framework for OTT services in your country that could be adapted to changes in the future? 100% 100% 100% Yes No 0% 0% Sector 1: Government, Regulators & Policy Makers Sector 2: ISPs, Telecom, Broadcast & Other Network Operators 0% Sector 3: OTT Service Providers, Vendors, and Content & Application Providers 26

27 Some Responses [2/2] Q) Should OTT service providers contribute to the upkeep of the network(s) they utilise? 100% 88.90% 64.90% Yes No 35.10% 11.10% 0% Sector 1: Government, Regulators & Policy Makers Sector 2: ISPs, Telecom, Broadcast & Other Network Operators Sector 3: OTT Service Providers, Vendors, and Content & Application Providers 27

28 OTT Study Next Steps Jun 2017 Completed Compiling OTT results internally Aug 2017 Country/Regional stakeholder consultation Jul 2017 Submitted for peer review Currently where are here: Peer review of the compiled results Sep 2017 Present results at CTO ICT Forum in Maputo, Mozambique Planning national/regional consultative meetings (Asia Pacific, East Africa, West Africa, South Africa, Caribbean & Americas)

29 How can your country contribute? OTT study co-ordination with stakeholders Including Network Operators, ISPs & other players National/Regional OTT Consultation Forum Collate input from stakeholders in your country Funding & Resources Sponsor/fund OTT events together with the CTO Publication & Dissemination Publicize & disseminate final report

30 Q & A Session Further Information Contact: Shola Taylor s.taylor@cto.int Tel: +44 (0) (Off) 30