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Business News of Wednesday, 18 May 2016

Source: B&FT

GIFEC calls for consensus on OTTs debate

Kwabena Owusu Akyeampong Kwabena Owusu Akyeampong

The Administrator of the Ghana Investment Fund for Electronic Communications (GIFEC), Kwabena Owusu Akyeampong, has called on stakeholders in the telecoms sector to build consensus on the ongoing debate regarding over-the-top services (OTTs) in a manner that will deliver value to consumers and allow actors to make the most out of their investments.

Addressing journalists to launch the 10th anniversary of GIFEC in Accra, he said: “The NCA must address the growing number of complaints from telecoms network operators who are faced with unfair competition from OTT services providers, as they are not subject to the same regulatory burdens as local operators.

“The authority must team up with telecoms network providers and allied institutions to build consensus to ensure that Ghanaians are not short-changed with the growing calls from telecoms outfits, while instituting measures that will benefit their operations.”

The combination of mobile broadband access, smartphones and Internet technology has led to the emergence of a new breed of consumer mobile voice and messaging communication services that have expanded basic communication in leaps and bounds.

According to industry research, global instant messaging volumes from over-the-top (OTT) providers currently exceed SMS volumes, with voice-over-IP (VoIP) now accounting for over 40 percent of international voice traffic.

It is has also been predicted that the global telecommunications industry will lose a combined US$386billion between 2012 and 2018 from customers using over-the-top voice applications.

Leading telecoms operator MTN Ghana has already come out clearly on how the current developments could affect the gains of both actors and the industry as a whole.

Chief Executive Officer of the company, Ebenezer Asante, disclosed to the B&FT in an earlier interview that local mobile telecoms are facing growing threats from over-the-top (OTT) players like Whatsapp, Viber and Facebook which offer cheaper voice services to customers.

He had argued that the cost of deploying a network to run voice services is significant, and for that reason any apparent bypassing of the expensive networks by OTTs will deny mobile operators from getting the most out of their investments.

And according to the GIFEC boss the situation demands deliberations among various stakeholders, stressing that sector actors and regulators should rule out short-changing the end-consumers.

He said: “It is important that the right stakeholder engagement is carried out in order to ensure that consumers do not end up losers with the global trend—which is an indication of the speedy growth of the numerous content and application services”.

The GIFEC boss also tasked the NCA to swiftly address the mounting concerns of poor delivery of data service by consumers, as it threatens the sector’s growth.

“Undoubtedly data is the future of the industry, and the mounting complaints from consumers rightly underscore that assertion.

“We cannot allow consumers to feel short-changed when indeed growth of the industry hinges on their patronage; it is therefore crucial to put in place ultimate consumer protection across the divide.”

The 10th anniversary celebrations of GIFEC will take place from May 22 to 27 at the Kofi Annan ICT Centre (KAICTC), and it will be an occasion to showcase the fund’s various achievements and impacts over the last decade.

GIFEC’s Director of Operations, Alhaji Yahaya Zakaria Osman, said the anniversary will be marked with symposia on the relevance of ICT to development, and cyber security in the wake of social media proliferation.

He said there will also be social responsibility actions including eye-screening for drivers, donations, fun games and a dinner, as well as an engagement with industry stakeholders to ascertain their challenge and expectations in the years ahead.