OTT service providers reluctant to work with mobile-network operators
10:57, 2014/11/18
OTT (over the top) firms fear they will be at a disadvantage if they have to work with mobile network operators to provide services.
Under a draft circular on the management of internet-based voice and text services, foreign firms would be allowed to provide paid internet-based text and voice services in Vietnam if they cooperate with Vietnamese telcos that have licenses to provide the services.
Foreign service providers can also set up servers in Vietnam if they cooperate with the Vietnamese telcos which have the license to provide internet-based text and voice services, under Vietnamese commitments in international treaties and regulations on foreign investment in the Telecommunication Law.
OTT firms are concerned they will have problems negotiating with mobile network operators, who are expected to “play it safe”.
Mobile network operators may use their “power” to block OTT services before the two parties can reach agreements.
In a worse case scenario, if the two parties cannot reach any commercial agreement, OTT firms will not be able to provide services. This means that in all cases, mobile network operators can have a hold over OTT firms.
It also may happen that an OTT firm can cooperate well with a network, but cannot cooperate with another network under similar conditions. In this case, the OTT services will be blocked.
Viber was thought to be most affected by the new regulation, because it provides internet-based text and voice services, both free and paid.
However, some analysts noted that there is no difference in using network infrastructure between the OTT firms providing free services and the firms providing paid services. And both of them use the same data capacity on the internet.
In principle, when subscribers pay money in accordance with the data they use, they must have the right to use the associated apps. If mobile network operators block OTT services, their clients will lose their rights.
A lawyer pointed out that a conflict of interest would occur if both mobile network operators and OTT firms want to provide OTT services. As rivals, networks will try to bar the OTT firms’ way.
“If the laws stipulate that OTT firms must cooperate with mobile network operators to provide services, it will give a ‘dangerous weapon’ to mobile network operators to overpower OTT firms,” he said.
Meanwhile, a representative from a mobile network operator said that telcos have no reason to block OTT services, because cooperation of the two parties will also help telcos attract more subscribers.
OTT firms are concerned they will have problems negotiating with mobile network operators, who are expected to “play it safe”.
Mobile network operators may use their “power” to block OTT services before the two parties can reach agreements.
In a worse case scenario, if the two parties cannot reach any commercial agreement, OTT firms will not be able to provide services. This means that in all cases, mobile network operators can have a hold over OTT firms.
It also may happen that an OTT firm can cooperate well with a network, but cannot cooperate with another network under similar conditions. In this case, the OTT services will be blocked.
Viber was thought to be most affected by the new regulation, because it provides internet-based text and voice services, both free and paid.
However, some analysts noted that there is no difference in using network infrastructure between the OTT firms providing free services and the firms providing paid services. And both of them use the same data capacity on the internet.
In principle, when subscribers pay money in accordance with the data they use, they must have the right to use the associated apps. If mobile network operators block OTT services, their clients will lose their rights.
A lawyer pointed out that a conflict of interest would occur if both mobile network operators and OTT firms want to provide OTT services. As rivals, networks will try to bar the OTT firms’ way.
“If the laws stipulate that OTT firms must cooperate with mobile network operators to provide services, it will give a ‘dangerous weapon’ to mobile network operators to overpower OTT firms,” he said.
Meanwhile, a representative from a mobile network operator said that telcos have no reason to block OTT services, because cooperation of the two parties will also help telcos attract more subscribers.
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