Experts advise OTT regulatory caution
Regulations on over-the-top (OTT) service platforms and operators should not be heavy-handed, according to industry experts.
Bunyati Kirdniyom, director of government affairs at Vriens & Partners, a Singapore-based advisory firm, said several countries have considered OTT regulations, mainly related to data protection and consumer protection.
However, regulators should be mindful of the consequences of overzealous approaches to OTT.
“It [OTT regulations] could ultimately inhibit innovation and also affect their business models, which rely on low barriers to enter the market,” he said.
In addition, he said regulation will not only have an impact on global OTT players but impose burdensome measures on local companies and startups who want to enter the OTT market. The benefits to consumers in terms of diverse service options and reduced prices far outweigh lost revenues.
“Fair regulations are essential to protect the public and the market. Going forward, more collaborative regulation is expected. Regulators should aim to establish an environment conducive to the growth of businesses while protecting consumers’ interests and providing them with affordable access to more innovative services and options,” he said.
NBTC vice-chairman Col Settapong Malisuwan said regulations should be adjusted to rely on multi-faceted inventions and harmonise with the changing environment.
The motive behind the regulations is to bring about fairness and equality, which can be achieved by reducing regulatory costs for incumbent operators or treating OTT operators equally. But the regulations have to focus on the advantages and disadvantages people will face.
Creating an innovative regulatory framework that generates a control mechanism that is in line with the changing context is very important, said Col Settapong.
Somprasong Boonyachai, chairman of the executive committee of BEC World’s board, said that OTT operators benefit from the immense investment network operators make each year. Bunyati Kirdniyom, director of government affairs at Vriens & Partners warns that OTT regulations could ultimately inhibit innovation.
Free instant messaging app and video call services on OTT platforms directly affect the revenue streams of mobile operators. On the other hand, mobile operators benefit from the growing data revenue generated as customers increasingly access online content through OTT platforms, he said. Mobile operators have to adjust their business strategies to tackle rapidly-changing consumer behaviour.