over the top services - itu.int€¦ · evolution of sector regulation 1. 2009 framework directive...

Over the Top Services

Market Impact and Regulatory Framework

Dr Tatjana Cvetkovic, Sanja Vukcevic Vajs

Contents

• Development of the electronic communication services

• OTT services and electronic communication market

• Definitions and examples of OTT services

• OTT services regulation

• Questions

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EC services - changes

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SERVICE

VOICEfixed, mobile phone

applications:Skype, WhatsAPP, Viber

TEXT MESSAGE

telegram, SMS

applications: FB messenger, WhatsAPP, Viber

VIDEO CONTENT

broadcasting,cabledistribution

Netflix, Youtube

OTT services and EC marketWhatsApp, Facebook Messenger, WeChat, Viber, Line andKakaoTalk:

2014 – 2.5 billion users

2018 – more than 5 billion users

Estimation:

OTT providers income in the 2020 - 10 billion US$ per year

Source: European Parliamentary Research Service, www.statista.com, www.recode.net

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Number of users by apps

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Source: www.statista.com, www.recode.net

77%85%

91%94%

23%15%

9%

6%

0

500

1000

1500

2000

2013 2014 2015 2016

1228

18601393

1591

600

500

500

495

1500

1300

1040

1000

0 200 400 600 800 1000 1200 1400 1600

WhatsApp

FB Messenger

WeChat

Viber

2018

2014

Top OTT messengers by country

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Source: Hootsuite, December 2017

OTT services in Serbia (1)

OTT voice services – VoIP operators and applications

• 26 VoIP operators

Voice applications

• GO4YU Calling (Talk&Text) - Telekom Srbija

• OrionRing+ Orion Telekom

• Unifon – SBB

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OTT services in Serbia (2)

OTT media services• OTT media providers based outside Serbia: Netflix, Pickbox, Net TV Plus, Google

TV, Amazon prime

• OTT media providers based in Serbia offering content of other content providers,using their own platform: KlikPink (Pink Media Group), D3 GO, (SBB), MTS TV GO (Telekom Srbija), Orion TV (Orion Telekom), Globaltel

• OTT media providers based in Serbia, offering their own content via their own platform: RTS Planeta

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Trends in EC market in Serbia

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Source:RATEL

37.7 37.6 37.4

34.7

30

35

40

2013 2014 2015 2016

Revenues from fixed telecom network services (billion RSD)

57.847.56 47.5

38.09

0

20

40

60

80

2013 2014 2015 2016

Roaming revenues (million €)

10.76 10.298.69 7.58

0

5

10

15

2013 2014 2015 2016

Number of sent SMS (billion)

24.7620.25

14.91 12.33

0

10

20

30

2013 2014 2015 2016

Number of sent MMS (million)

EC operators - OTT providers

Area of regulation EC operatorsOTT

providers

Licensing, registration + -

Services limited by network availability + -

Data protection and privacy + -

Data retention and lawful interception + -

Regulatory fees and taxes + -

Number portability + -

QoS + -

Infofest 2018 Budva Montenegro 10Source: Detecon Consulting 2014

OTT services - definitions

• ITU On-line application/service, which can potentially replace

traditional tеlcommunication and audio-video services such as voice telephony, SMS, VoD and TV.

• BEREC OTT service is a content, a service or an application

that is provided to the end user over the public Internet.

• Detecon Consulting OTT communication and

OTT media

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OTT regulation- examples

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• Singapore - licenses for VoIP connecting to PSTN

• USA – no license, obligation for emergency calls and LI

• EU - no license, (FR, ES block OTT - PSTN)

• UAE - OTT only with licensed operators

• Egypt - VoIP over mobile forbidden

• Saudi Arabia - OTT blocked - LI problems

• Bahrain - licenses for VoIP connecting to PSTN

Source: Detecon Consulting 2014

Evolution of sector regulation1. 2009 Framework Directive (amending Directive 2002/21/EC) - OTT not

defined

2. BEREC Report on OTT services (BoR 2016)

• OTT-0: OTT = ECS (ViberOut, SkypeOut,…);

• OTT-1: OTT potentially competes with an ECS, (Skype, Viber, WhatsApp, Google Talk,…);

• OTT-2: other OTT services (facebook, youtube, e-bay)

3. Proposal for a Directive of the European Parliament and of the Council establishing the European Electronic Communications Code (Recast, June 18)

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EECC

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Electronic communications service - definition:

1. internet access service

2. interpersonal communications service - ICS

• number-based ICS – consumer rights, interoperability, number portability, emergency services, QoS

• number-independent ICS – emergency services if tech. possible, details left to NRA’s discretion...

3. other services – conveyance of signals: M2M, broadcast…

EECC - comments

• ETNO, GSMA : infrastructure investment

• CCIA and Digital Europe against OTT regulation

• Emergency services - 112 obligation - where technically possible

• LI not defined for OTT providers

• How to impose obligation on non-European OTT providers?

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• global / regional

• consumer rights

• charging OTT providers

?

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Dr Tatjana Cvetković

tatjana.cvetkovic@ratel.rs

Sanja Vukčević Vajs

sanja.vajs@ratel.rs

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