Over-the-Top Communications

​​​​​​The economic impact of over-the-top (OTT) services is an area of study covered by Question 9/3​ of ITU-T Study Group 3. Online and OTT services have transformed the economies of both developed and developing countries; moreover, this effect has clearly trickled down to small businesses and to individuals. Historically, these benefits have tended to be concentrated in developed countries; however, as the process of digitalization accelerates, and as more and more people worldwide are connected to the Internet, these benefits accrue to developed and developing countries alike. This tendency is closely linked to the growth in the availability and affordability of mobile broadband (and smart phones), which has deepened network coverage and opened it up to the masses.​

Concerns are widespread that OTTs may be impacting the revenues and profits of traditional network operators. This could in turn depress investments that are needed in fibre-based infrastructure, and in new mobile access technologies such as LTE. Different interpretations are possible as to the relevance and severity of this threat.

In response to new competition from OTT providers, some fixed-line and mobile operators are launching their own OTT services to extend their market reach.  Many are based on cloud-based OTT platforms to reduce their time to market. Another issue of key relevance to debates surrounding OTT is the protection of the rights and privacy of consumers using OTT services, given that the regulatory safeguards of traditional telecommunications may not be applicable to OTT.  The rise of OTT has called for the industry to balance the demands of consumers with those of traditional and new industry stakeholders.