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SUMMARY
OTT firms are emerging and flourishing players in the broadband ecosystem, and can become a significant competitive pressure on existing network operators if properly nurtured: telecom OTTs can be direct competitors to incumbent telecom carriers, whereas application/content OTTs can be alternative platform providers that may replace the portal functions of incumbent network operators. Since market competition is the most efficient and favorable resource allocation mechanism when conditions are met, it is important not to interfere with the development of OTTs, unless OTTs pose a clear and immediate threat to the competitive ecosystem.
Since OTTs are free from legacy infrastructures, they can adopt state-of-the-art technology with less resistance and introduce new or improved services in less time than firms that have been investing fortunes in network infrastructures. Therefore, supporting OTT firms can be a good industrial policy to enable the public enjoy the benefits of broadband ecosystem sooner.
Therefore, telecom/internet policies should not inhibit the development of OTTs and should be ready to intervene when existing players and already established OTT giants engage in anti-competitive activities against them. Alternatively, if the current market condition is not competitive enough, policies can be “targeted” to help OTTs become significant players in the market; however, such policies should be for a temporary period, otherwise they may cause more harm than good in the long run. In addition, it is important to keep in mind that there is no one-size-fit-all solution. For example, a treatment to the partnerships between OTTs and network operators has to be adjusted according to the broadband development stage: the lower the stage level is, the less restrictive governmental oversight should be.
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