By Adam Wakefield
A cellphone operator’s view
Byron Kennedy, the executive head for media relations at
Vodacom, told
Media Update for the record, the network operator has never called for regulating, limiting or blocking OTT services in South Africa.
“We support consumers’ rights to access any services they want via the connectivity we provide and sustain through massive investments. This simple formula has been mutually beneficial for us, our million customers, and the country,” Kennedy says.
“Our legislators, regulators and ICT stakeholders are in the initial stages of a conversation that says the impact of OTT services should be continually monitored and regulatory intervention be introduced if it is deemed necessary. That way, we are keeping up with global conversations is a positive step.”
Kennedy said Vodacom supports an open Internet and solutions that allow all the players to work together in the broader interests of the public and the country.
“Accordingly, we are committed to work with the portfolio committee, policy makers, the regulator and other relevant stakeholders to enhance an environment that enables all players, including OTTs, to co-exist in South Africa,” Kennedy says. “We believe this is possible.”
Media Update contacted MTN for their views on the matter, but had not received a response prior to publication.
An analysts’ view
Leading Internet and mobile technology expert, commentator and World Wide Work head
Arthur Goldstruck says Vodacom and MTN saw OTT players as a threat to their future voice and messaging revenues, motivating both networks to question the current regulatory environment.
“Already, instant messaging apps have resulted in a plunge in SMS usage. Now that voice over data is becoming common in these apps, they fear a similar erosion of voice revenues,” Goldstruck says.
What neither Vodacom nor MTN were telling the public about positioning in the OTT debate, according to Goldstruck, was saying very little about the positive impact such apps had on their revenue, with data traffic growing “at well over 40% a year and data revenue still growing at above 25% a year”.
“They are also not giving the OTT players credit for stimulating demand for smartphones, which has a knock-on effect in several areas of the operator business,” he says.
Fellow network operator Cell C have made it known they do not support local regulation of OTT services. Goldstruck believes Cell C’s split from Vodacom and MTN in two respects.
“Firstly, it has recognised the positive impact of OTT apps on its own network utilisation, data traffic and data revenue,” he says. “Secondly, it has grasped the opportunity to position itself as the consumer champion, by being not only app-friendly, but also by making it even more cost-effective for its customers to use the OTT apps.”
By having an OTT strategy that appears the opposite of that adopted by the major players, Cell C, in Goldstruck’s view, has successfully differentiated itself from their competitors.
The regulator’s view
Spokesperson Paseka Maleka says Icasa would consider the issue of net neutrality or open Internet and its impact on competition and innovation.
“We may also consider undertaking an inquiry or research into priority markets -- including possible OTT services markets -- in the 2016/17 and 2017/18 financial years,” Maleka says.
“And of course, Icasa has adopted a wait and see approach as we continually monitor the impact of OTTs and we will intervene if necessary. However, we also do not want to stifle innovation.”
What are your views of OTT regulation in South Africa? Let us know in the comments below.