[kictanet] OTT Regulation: The Empire Strikes Back

Mose Karanja mosekaranja at gmail.com
Wed Jan 27 13:21:14 EAT 2016


South Africa - 26 Jan.
The Portfolio Committee on Telecommunications and Postal Services organised a public briefing on the Over-The-Top (OTT) policy and regulatory options.
Internet Connection Providers (MTN, Vodafone….) claim OTT services don’t contribute financially to the local networks, don’t pay taxes, are not focused on consumer security. Their proposal: Regulate the providers just like the telcos are to equal the playing field.

The OTT providers: Google (Hangouts) Facebook (Messenger, WhatsApp) and Microsoft (Skype) countered these claims: Google said they pay taxes to the SA government (this is not even a matter of opinion. It is either they pay or not), Facebook pointed to the symbiotic relationship that exists between them and the Telcos seeing the data consumed while using the OTTs is clearly revenue for the telcos. On security, FB gains revenue from advertisement, not selling user data. Microsoft: Skype helps minimize communication costs for consumers. Innovators and new entrants to the market benefit more by using these services than the companies do in revenue from Skype, WhatsApp and such. Data segments in the Telcos are the fastest growing revenue bases. They should thank the OTTs for this.

The Consumer: I would love to hear what consumer groups in SA had to say to the Parliamentary committee, if they were there in the first place.

Clearly OTTs have slashed communication prices which ISPs have for long managed. Now that 'the times are a changing’ it is quite immoral, I dare say, for the telcos to lobby regulators help them deal with lost revenue (I prefer missed innovation).
It is more like car makers asking fuel companies to compensate them since they are making profits from their products. It doesn’t work like that. Unfortunately, we this battle is seen as ISPs versus the OTT providers and not between Consumers and ISPs, the regulators might just forget who they are out to protect.

Morocco suspended VOIP this month on this principle, Rwanda is thinking along those lines. Kenyan Telcos are thinking about it. We are in for a real show.

For more info: http://ewn.co.za/2016/01/26/Parly-cautioned-against-regulating-OTT-services <http://ewn.co.za/2016/01/26/Parly-cautioned-against-regulating-OTT-services>



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Moses Karanja | @Mose_Karanja <https://twitter.com/Mose_Karanja> | PGP: 0x1529552F <https://pgp.mit.edu/pks/lookup?op=index&fingerprint=on&search=0x1529552F>




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