NBTC may require OTTs to secure licenses
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Thai telecoms regulator NBTC is considering requiring OTT communications service providers to secure an operating license and an internet bandwidth fee to ensure a more level playing field between OTT players and telecoms operators.
NBTC secretary general Takorn Tantasith told that a fee could be imposed on OTT services by 2018.
Initially OTT services running over mobile networks could also be expected to secure an operating license from the NBTC and pay a value-added tax the same as traditional businesses, he said.
He said the regulator is making the move to reflect the dramatic increases in revenues generated by OTT providers and the strain demand for services such as YouTube places on mobile networks and accordingly operator revenues.
The NBTC plans to hold an open forum to discuss the issue in Bangkok in September, and will invite representatives from all telecoms regulators in the Asean region, as well as 50 operators across the region and the major OTT service providers.
The NBTC’s decision was motivated by a meeting of the Asean Telecommunication Regulators’ Council focused on the challenges OTT services pose to business ecosystems.
Questions & Answers
Q.What is the primary motivation for the NBTC considering these new licensing requirements for OTT providers?
What is the primary motivation for the NBTC considering these new licensing requirements for OTT providers?
The NBTC is making this move to reflect the significant increase in revenues generated by OTT providers and the strain that high demand for their services places on mobile networks, impacting operator revenues.
Q.When might an internet bandwidth fee be imposed on OTT services?
When might an internet bandwidth fee be imposed on OTT services?
The NBTC secretary general indicated that a fee could potentially be imposed on OTT services by 2018. This is part of wider considerations for new regulations.
Q.Which specific types of OTT services might initially be expected to secure an operating license?
Which specific types of OTT services might initially be expected to secure an operating license?
Initially, OTT services that operate over mobile networks could be expected to secure an operating license from the NBTC. They may also need to pay a value-added tax.
Q.What events led the NBTC to consider these changes regarding OTT services?
What events led the NBTC to consider these changes regarding OTT services?
The NBTC's decision was motivated by a meeting of the Asean Telecommunication Regulators’ Council. This meeting focused on the challenges OTT services present to existing business ecosystems.
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