The National Communications Commission (NCC) yesterday said it has yet to reach a consensus on how to regulate over-the-top content (OTT) service providers, adding that the unresolved issues mean no regulations concerning OTT were added to five new acts aimed at tackling the challenge of digital convergence.
OTT refers to audio, video and other media content delivered via the Internet, the distribution of which is not controlled by a single entity such as a cable television company.
Despite the rapid growth of OTT services worldwide, a new act proposed by the commission to regulate cable systems and other multiple-channel platforms did not include OTT operators in the list of the platforms subject to regulation.
The issue was raised yesterday during a discussion session of the Internet Governance Forum hosted by the NCC.
Satellite Television Broadcasting Association secretary-general May Chen (陳依玫) said that since the service was launched in 2013, the number of 4G users has reached 10 million.
The NCC says that the same regulations apply to providers of the same services, but now that the market involves operators who need to have licenses and those who do not — as well as those operating illegally — any regulations should apply to both content providers and platform operators.
She asked why the commission did not stipulate identical standards in the new act for all content providers or for all platform operators, including OTT operators, so that providers offering the same service are treated equally.
NCC commissioner Katherine Chen (陳憶寧) said that although the boom in the use of 4G services has led to an increase in demand for OTT services — and seems to be threatening the existence of cable services — it is a short-term development, because the unlimited Internet access currently being offered by telecoms at flat rates will soon be phased out.
“Once unlimited Internet access is gradually phased out from the market — which could happen next year — consumers will probably start downloading audiovisual content via Wi-Fi, rather than through a 4G network, as happened in the US,” Katherine Chen said.
Commissioners have exchanged thoughts about OTT services, but have yet to reach a consensus on specific regulations, although they have reached agreements on some general principles, she said.
The commission would focus on the regulation of the dominant players in the market, and the regulation would be joint management between the government and operators, she said, adding that supervision must not stifle the development of the industry.
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