South Africa\u2019s third largest mobile network Cell C says that possible local regulation of over-the-top (OTT) services like WhatsApp could harm the industry and consumers.<\/p>\n
OTT services – which range from WhatsApp to Skype and Google Hangouts – allow users to make messages and calls over data networks – typically at lower costs than traditional telephone calls or SMS.<\/p>\n
But local growth of these services prompted top chief executives at Vodacom and MTN last year to call for regulation of OTT services.<\/p>\n
And now that call has been taken to the Portfolio Committee on Telecommunications and Postal Services which said in a statement on Thursday that \u201cmobile operators are requesting that Parliament consider passing a policy or regulations of data services on mobile networks such that they generate revenue for carrying the data services on their bandwidth infrastructure\u201d.<\/p>\n
The committee has scheduled hearings on January 26 to discuss possible regulation of OTT services in South Africa.<\/p>\n
However, in light of the upcoming hearings, Cell C is taking a different stance to its rivals on the matter.<\/p>\n
\u201cWe strongly believe that this (regulating OTT players) could be to the detriment of the industry and consumer at large,\u201d Cell C chief executive officer, Jose Dos Santos, told Fin24 via an email response.<\/p>\n
\u201cContrary to our competitors, Cell C has been embracing the services offered by OTTs,\u201d Dos Santos told Fin24.<\/p>\n
Cell C provides free access to Facebook and basic internet services through Internet.org. The company also offers unlimited WhatsApp at R5 per month, Dos Santos explained.<\/p>\n
The Cell C CEO further said his company plans to attend the OTT hearings on January 26.<\/p>\n
\u201cIt is key for mobile operators and OTTs to find innovative ways to work together and we look forward to building on our existing partnerships with the OTTs,\u201d he added.<\/p>\n
Cell C is South Africa\u2019s third largest operator with 22 million subscribers in South Africa.<\/p>\n
Last month, Cell C announced that its board had accepted an offer from JSE listed Blue Label Telecoms [JSE:BLU]\u00a0to acquire 35% of the mobile network for R4bn.<\/p>\n
The boards of Cell C and its holding company 3C Telecommunications have also accepted an offer from Cell C management and staff to hold about 30% of the mobile network’s shares for R2.5bn.<\/p>\n