ISPA weighs in on OTT regulation, tells networks to innovate

It’s been a long time since South Africa’s seen a tech issue as contentious as the bid by the country’s mobile network operators to regulate over the top (OTT) apps such as WhatsApp, Viber, and Skype.

The networks’ argument is that these apps, which allow people to make calls and send text messages, have eaten their traditional revenue streams without spending any money on infrastructure. Everyone else’s argument is that the people using theses services spend ridiculous amounts of money on data, all of which goes into the operators’ bank accounts.

The latest part to weigh in on the debate is the Internet Service Providers’ Association (ISPA), which argues that the networks should look to innovate rather than regulate.

Read more: Petition launched to save WhatsApp from OTT regulations

Doing so, the organisation says, will benefit consumers and drive the uptake of broadband.

“History tells us that you cannot regulate progress out of existence,” says ISPA chairman Graham Beneke. “Imagine how the GDP-boosting growth of cellular phones in South Africa would have been constrained if Telkom had decided in 1994 to approach Parliament with the unworkable idea that landlines and cellphones should be bundled together in order to protect its monopoly?

“Indeed, there had previously been suggestions of blocking services like Skype on fixed-line networks, at a time when Voice over Internet Protocol (VoIP) services were reserved for a limited number of operators. Since the evolution of our regulatory environments, these services have been liberalised and form part of the value proposition for broadband customers.

“The mobile networks forget that they once were the new kids on the block. Their growth was encouraged and look what a wonderful difference they made to South Africa. OTT services have the potential to further democratise communication and drive uptake of broadband because they offer an affordable alternative to the millions of South Africans who cannot afford to make a call or to pay 50 cents each time they send a single SMS”.

For that reason, ISPA has urged the networks to innovate with regards to OTT services and network services co-existing.

Read more: Attempts to regulate WhatsApp, other OTTs could get ludicrous

“Operators are already thinking out-the-box when it comes to over-the-top,” says Beneke. “For example, positive airtime balances are required to access OTT services like WhatsApp. Fair usage protocols have also been applied for some time”.

It is, of course, in ISPA members’ best interests that an amicable solution be found. Many South Africans’ first encounters with the internet are on mobile devices, eventually driving them toward home-based internet solutions.

According to Beneke, “Africa desperately needs OTTs to grow Internet participation. Attempting to regulate this technology will hinder the continent’s ICT development, be a technical nightmare to enforce, and simply encourage the growth of a plethora of other lesser-known messaging applications”.