Balanced cooperation between mobile network operators and over-the-top (OTT) players is needed to develop a win-win ecosystem.
This is according to MTN CEO Ahmad Farroukh, who says operators cannot be in complete control of the Internet ecosystem while a broadband pipe that lacks appealing content and applications means little to end users.
Addressing delegates at the 17th edition of AfricaCom in Cape Town today, Farroukh broached the OTT topic, which has come to the fore this year as SA's operators grapple with a decline in traditional revenue and the relatively new wave of OTT players.
He said mobile network operators and OTT players could either fight each other off, or opt to work in partnership to define access and structure - a fair deal for both parties.
Revenue protection
"On one hand, we need to stress that there should be no free ride for OTT players. Mobile network operators will protect their customer base and revenue streams. Rules of engagement will have to be defined between operators and OTT players. Involvement of global forums that represent operators, such as the GSM Association, will most likely be necessary to define the rules of engagement."
Farroukh suggested, operators could, for example, charge for value added services and quality of service. "Those that want a premium service will be willing to pay a premium."
He said mobile operators needed to put a plan in place to avoid being forced into being dumb pipes, which he defined as "investing and providing the infrastructure, but allowing OTT app providers to own the customer and make money in the future".
"Mobile network operators have made substantial capital investment in licensing and spectrum, acquiring and building their customer base and investing in building trusted brands. Operators have been catalysts and economies enablers and have contributed significantly to the fiscal budgets of many economies - all of this not to be shared for free," said Farroukh.
He pointed out that instant messaging platforms need "mobile super broadband availability" for content and current and enhanced future OTT voice. "If the current ecosystem does not change, operators will lag behind in providing capacity for this access and then the game plan will change completely.
"OTT sooner or later will be charging for their services - their current revenues streams predict that. The cooperation with operators can cover that in a win-win aspect."
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