Over The Top (OTT) Services: CTO Study to understand the Dynamics & Opportunities Shola Taylor Secretary General, CTO

Mandated by the Commonwealth ICT Ministers in 2016 in London Background Mandated by the Commonwealth ICT Ministers in 2016 in London Objective: To understand the market dynamics and policy and regulatory challenges of Over- The-Top services both in the context of their impact on traditional business models and of opportunities for innovation and stimulating economic growth Key Drivers: Free for users Availability of Broadband Growth of smart phones CTC-57 2

OTTs are here to stay CTC-57 3

Difficulties to assure end-to-end quality control Challenges Difficulties to assure end-to-end quality control Not subject to National jurisdiction Do not pay local taxes Do not contribute to universal service Personal data protection and privacy issues Security concerns CTC-57 4

CTO OTT Study – Issues examined Challenges of OTT Services Licensing Pricing, Taxes QoS/QoE Operating Area Interconnection & Number Portability Infrastructure/Network Potential Impact of Unregulated OTT Services Security Issues Privacy Issues National Economy OTT Voice Service Regulation: Case Studies OTT Regulation Debate Questions raised by CTO stakeholders CTC-57 5

Process Online survey of stakeholders Sector 1 - Government & Regulators Sector 2 - ISPs, Telecom, Broadcast & Other Network Operators Sector 3 - OTT Service Providers, Vendors, and Content & Application Providers Sector 4 - Consumers (End-Users), Civil Society & Advocacy Groups Stakeholder consultations on the outcomes of the survey Final report by 2nd Quarter of 2018 Continuous updating CTC-57 6

Online survey outcomes Responses received from nearly 32 countries around the world, both Commonwealth & Non-Commonwealth Countries Sector 1 Government & Regulators Sector 2 ISPs, Telecom, Broadcast & Other Network Operators Sector 3 OTT Service Providers, Vendors, and Content & Application Providers Sector 4 Consumers (End-Users), Civil Society & Advocacy Groups 23 Responded 28.4% 38 Responded 46.9% 11 Responded 13.6% 9 Responded 11.1%

Q & A Session Shola Taylor Further Information Contact: Email: s.taylor@cto.int Tel: +44 (0) 208 600 3800 (Off)