Detecon Study: Network Regulation Must Give Greater Consideration to the Influence of OTT Services

COLOGNE and ESCHBORN, Germany, Sept. 18, 2014 /PRNewswire/ -- The growing presence of over-the-top (OTT) providers on markets worldwide demands an adaptation of the general regulatory frameworks in many countries. This is necessary to secure the competitiveness of traditional telecommunications providers and to safeguard consumers' interests in the long term. Experts at the management consulting company Detecon Consulting have examined competitive conditions and list a series of recommendations for action for politicians, regulatory authorities, and network operators.

"While telecommunications companies are investing massive amounts of money in the expansion of broadband, they are at the same time gradually losing the business fields that have been most profitable for them," declared Dr. Markus Steingrover, Managing Partner at Detecon. "Telecommunications companies should be given the opportunity to adapt their business models flexibly to meet market demand." According to the study, the general regulatory conditions in many countries now in effect do not permit companies to set prices at their own discretion. Outside of the EU, end customer rates are often regulated directly, thereby preserving outdated rate structures.

Most important recommendations:

• Review existing regulations for network operators. Detecon recommends a detailed review of the regulatory obligations faced by the operators and their adaptation as indicated by the results of the review.
• Determine the impact of OTT services on the market. Detecon recommends encouraging the creation of alternative business models for OTT providers such as collaboration with local ISPs to provide services.
• Define a framework for net neutrality regulations. Detecon recommends that the GCC countries develop basic neutrality guidelines to protect consumers' interests.

Find the complete analysis "Policy and Regulatory Framework for Governing Internet Applications" at http://www.detecon.com/policyframework.

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