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The Clash of Titans: Telcos vs. OTTs in the Digital Communication Landscape

This discourse explores the ongoing battle between traditional telecom operators (telcos) and over-the-top (OTT) service providers. It delves into the nuances of regulation, emphasizing the disparity in treatment between telcos, which face stringent regulations, and OTTs, which operate largely unregulated. The discussion questions whether both groups should be held to the same regulatory standards, examining the financial implications for consumers and the market dynamics influencing broadband access costs. Are couch potatoes unfairly subsidized by bookworms, or is reform needed for equitable digital communication services?

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The Clash of Titans: Telcos vs. OTTs in the Digital Communication Landscape

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Presentation Transcript

  1. “LIBRE” versus “GRATUIT” • There is no such thing as a Free Lunch! • Why should the couch potatoes be subsidized by the bookworms? • The couch potatoes should pay more for the massive data they consume, or else Netflix should pay operators for wholesale access, otherwise everyone will have to pay more for retail broadband access.

  2. “TELCOS” versus “OTTs” • Facilities-based telecoms operators are subject to sector-specific as well as generally applicable regulation, while OTTs are generally not subject to any regulation at all. • Should both groups be regulated? • Should neither group be regulated? • The competitive playing field for provision of digital communications services is utterly unbalanced: As matters stand “telcos” are morphing into low-margin “dumb pipes”.

  3. “EX ANTE” versus “EX POST” • Should telecoms operators remain subject to complex, multi-level, sector-specific regulation which was conceived to be transitory? • Internet access bottlenecks, where network competitors are not present. • How should applicable competition rules regulate online providers of digital communications services?  

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