Why Nigeria may not regulate OTT services

By ADEDEJI ADEYEMI FAKOREDE

THE telecommunications world in the last decade has witnessed tremendous developments with rapid growth in the number of connected people across the world. Yet, the best may not have come in terms of innovations that get people connected beyond mobile telephony.

From the developed to the developing countries, innovations continue to change the telecommunications landscape, thus forcing the industry regulators to periodically adjust their rules to meet the demand of the dynamic industry.

Although licensed operators in the country have continued to sound it to the regulator to bring over the top (OTT) services providers under its regulation, the Nigerian Communication Commission appears to be treading cautiously.

That perhaps explains why the commission recently released its own report tagged overview of provision of over the top services, the report which was drafted by the policy, competition & economic analysis department of the commission highlighted the challenges posed by OTT services to licensed operators, but gave some conditions under which the former may be regulated.

The regulators view is that regulating the OTT or internet will stifle creativity and innovation, and reduce the accelerated growth Nigeria is already recording in new media developments across the world.

The Executive Vice Chairman of NCC, Prof.Garba Umar Danbatta who spoke at a recent function through the commission Director of Public Affairs, Mr Tony Ojobo, noted that the regulators objective should be to catalyze additional opportunities offered by OTT services to the benefit of the consumer and to support competition while avoiding the OTT related risks in the areas of security and data protection.

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Ojobo said that while the commission acknowledges the fears of traditional telecom service providers that traditional telephony and SMS revenues are under threat from newer, IP based alternatives like Whatsapp, Skype, Viber, among others. They should also in turn accept the challenge to innovate and explore more efficient business models that would enable them compete favourably with OTT service providers.

However, the commissions’ policy department has recommended that commission should conduct a stakeholders’ consultative forum on the provision of over-the-top services in Nigeria to determine if regulation is required for such services and its impact on the growth of the Nigerian Telecoms industry.

Following the consultations, the commission should review its guidelines on the provision of international gateway and voice over internet service and also consider an appropriate framework for provision and regulation of the over-the-top services in the Nigerian Telecoms market. The commission must ensure that it does not stifle innovation since internet penetration is still evolving access speeds are still low and there is limited coverage of high speed broadband in Nigeria.

It further recommends that the commission should encourage network providers in Nigeria to innovate and explore more efficient business models that would enable them compete favorably with OTT service providers, adding that network providers can also take advantage of the internet protocol technology in the design for their network upgrades.