The Nigerian Communication Commission (NCC) is said to be considering a framework on how to regulate Over-The-Top (OTT) technology services, software technoly services such as WhatsApp, Viber, BBM, Facebook, WeChat and Skype falls into this category.
Over-The-Top (OTT) services are smartphone-enabled applications that provide services that are carried over mobile networks such that telecommunication companies are not involved or have any influence or control in the planning, provisioning, servicing and selling of the app.
OTT services, which usually use internet connection, have come to replace certain services offered traditionally by telecom companies.
In a report titled:‘An Overview of Provision of Over The Top [OTT] Services’, which was recently published by the Policy, Competition & Economic Analysis Department of the Nigerian Communications Commission, stated that OTT services were a big threat to mobile network service providers.
The report, however, stated that the problem was a global problem and not peculiar to Nigeria only. It further stated that internet enabled OTT services are far more cheaper -even free at times- and offer more innovative features that are more appealing to users, than those offered by network providers.
This, according to the report, is causing loses to mobile network operators, like MTN, Airtel, Etisalet, Glo, who pay tolls for the services they provide, unlike OTT services that do not pay toll.
The report stated that: “Many traditional telecom service providers are of the opinion that traditional telephony and SMS revenues are under threat from newer, IP based alternatives like WhatsApp, Skype, Viber etc.
“Similarly, third party web content and social networking companies such as Google and Facebook are increasingly generating huge revenues and driving high levels of data traffic which ride on the broadband networks of traditional telecom operators’.
“To further worsen this issue, the traditional operators still have to make significant investments in upgrading their networks to handle the increasing volume of data generated by the same providers of OTT services.
“Most traditional telephone network service providers therefore argue that unless there is a revenue flow to them from such services, they do not have an incentive to continue to maintain or upgrade the networks.”
The reported further recommended the need for regulation because OTT services poise security risks to the country.
“Because VoIP relies on your Internet connection, it may be vulnerable to many of the same problems that face computers.
“Attackers may be able to perform activities such as intercepting communications, eavesdropping, taking control of phones, making fraudulent calls from an account, conducting effective phishing attacks by manipulating one’s caller ID, and causing service to crash.”
