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Home Media ICT Clinic (Punch Newspaper)

Dear Telcos, OTT Is Not Your Enemy [ICT Clinic]

by Chukwuemeka Fred Agbata Jnr
9 years ago
in ICT Clinic (Punch Newspaper)
Reading Time: 2 mins read
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telcos nigeria

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It is interesting that telecommunications companies all over the world regard Over-the-Top players/services as the enemy. I have therefore decided to make it my duty to inform them that contrary to what they think, they are simply being disrupted. If the telecom firms want me to make the same statement differently, I would simply say innovation is the enemy.

The PUNCH report, titled ‘Recession: Telcos may block Skype, WhatsApp calls, target N20tn revenue’, caught not just my attention but also that of numerous people. Here is an excerpt from that report by Ozioma Ubabukoh:

“…It is an aggressive approach to stop further revenue loss to OTT players on international calls, having already lost about N100tn between 2012 and 2017,” a manager at one of the major telcos in the country said.

Speaking on the condition of anonymity, the manager said, “If we fail to be pro-active by taking cogent steps now, then there are indications that we may lose between N20tn and N30tn, or so, by the end of 2018. The source added that the increasing rise of the OTT players, who provide voice and Short Message Services, or apps such as WhatsApp, Skype, Facebook, BlackBerry Messenger and Viber, was eating deep into the voice revenue of telecommunications companies in the country by more than 50 per cent.”

After reading that report and the comments that followed, it was clear that more Nigerians oppose the move, which has already reached an advanced stage. In fact, I can authoritatively state that after a recent high-powered and heated stakeholders meeting, a foremost audit firm has been mandated to dig deeper and come up with data to back up the claims by the telcos. Except Nigerians make their voice as loud as ever, you can bet that OTT services, as we know it, will exist only in bits and pieces.

Interestingly, some world-class companies that regard themselves as disruptors, such as Facebook, Microsoft, and Google, have all voiced their opposition to the regulation of OTT services. I stand with them on this!

Nigeria is actually not the only African country seeking to regulate OTT services. In South Africa, there are reports that OTT service providers do not pay taxes to the government. The Corporate Service Executive, MTN South Africa, Graham de Vries, in a presentation at a parliament meeting earlier this year, made the company’s position on the matter known and subsequently challenged an online petition by All4Women.co.za calling on the South African government to reject calls by telcos to regulate these services. Kenya is also seeking to amend regulations that will affect OTT services in the country. — Finish Reading on the Punch Website

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