The Unholy Trinity: How Over-the-Top (OTT) Services are Ruining the Telecoms Industry
In a scathing indictment of the OTT services, Nomvuyiso Batyi, CEO of the Association of Comms and Technology (ACT), has called for a radical rethink of the industry’s policy framework to ensure the sustainability of the telecoms sector.
Batyi’s blistering critique comes as the telecoms sector continues to grapple with the impact of OTT services, which have become data-hungry behemoths relying on the networks of traditional operators to thrive. While OTT players like WhatsApp, Facebook, and TikTok have experienced phenomenal growth, the decline of traditional telephony services has left operators struggling to make ends meet.
Batyi argues that the continued reliance of OTTs on broadband networks makes it imperative for policymakers and regulators to put in place an effective policy framework to regulate these services. She warns that without such a framework, the network infrastructure will continue to be eroded, undermining the very fabric of the industry.
The ACT CEO also calls for a fair share arrangement between OTTs and traditional operators, citing the need for OTTs to contribute to the infrastructure costs of the networks they rely on. "Fair share arrangements create an incentive for network operators to invest in network infrastructure," she notes. "If network operators perceive that OTTs are not contributing their fair share, it may discourage them from investing in the necessary infrastructure to support the growing demands of the OTTs."
Batyi’s comments have sparked a heated debate, with some critics arguing that the regulation of OTTs would stifle innovation and consumer choice. However, others have expressed support for her proposals, citing the need for a more balanced approach that recognizes the impact of OTTs on the telecoms sector.
As the battle for the future of the telecoms industry intensifies, one thing is clear: the status quo is no longer sustainable. The question is, will policymakers and regulators have the courage to take bold action to ensure the survival of the industry, or will they continue to appease the OTTs at the expense of traditional operators and consumers? Only time will tell.
