Telcos urge fair share contribution from OTT players

Telcos urge fair share contribution from OTT players

OTT players have transformed the digital landscape by offering bandwidth-heavy services that generate a significant amount of traffic. As a result, telecommunication companies are facing the challenge of upgrading their networks and enhancing their capacity to cope with the increasing demand. These OTT players have become a dominant force in the market, prompting telcos to advocate for a fair share contribution from them. The call for OTT players to contribute to the infrastructure costs is a growing concern for telecommunication companies, who argue that they bear the burden of supporting and maintaining a robust network that can accommodate the high traffic generated by the bandwidth-intensive services offered by the OTT players. Telecommunication companies argue that the uneven distribution of network costs is unfair and unsustainable in the long run. The increasing demand for bandwidth-intensive services not only strains the existing infrastructure but also necessitates further upgrades and enhancements to ensure the seamless delivery of these services. In order to sustain the quality of service and continue catering to the growing customer base, telecommunication companies are seeking greater financial support from OTT players. The need for collaboration between telcos and OTT players is crucial to ensure the stability and reliability of the networks. While OTT players have made significant contributions to the digital ecosystem, their rapid growth has also placed a disproportionate burden on telecommunication companies. The infrastructure expenses incurred by telecommunication companies are substantial and ongoing. They invest heavily in maintaining and expanding their network infrastructure to meet the growing demand for high-speed internet and bandwidth-intensive services. The revenue generated by telecommunications companies is largely derived from the fees they charge for delivering data traffic through their networks. However, the revenue generated from these services is not proportionate to the costs incurred by telcos in upgrading and maintaining their networks. This disparity has prompted telecommunication companies to advocate for a fair share contribution from OTT players. Telecommunication companies argue that since the OTT players rely on the infrastructure provided by the telcos to deliver their services, it is only fair that they contribute financially towards its maintenance and expansion. While some OTT players have taken steps to collaborate with telecommunication companies and share the burden of infrastructure costs, others are yet to adopt a similar approach. The lack of a balanced financial contribution from all OTT players places a strain on the finances of telecommunication companies. Without sufficient financial support, telecommunication companies face challenges in providing reliable, high-speed internet services to their customers. Additionally, the strain on the network infrastructure can lead to bottlenecks and poor quality of service. To ensure the continued smooth functioning of the digital ecosystem, greater collaboration and financial support from OTT players are imperative. Telecommunication companies have called for a fair and equitable sharing of infrastructure costs to ensure a level playing field for all stakeholders. It is essential for OTT players to recognize their dependence on telcos’ infrastructure and contribute their fair share towards maintaining and expanding it. Only through such collaborative efforts can telecommunication companies address the challenges posed by the rapid growth of OTT players and provide seamless, high-quality services to customers.

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TIS Staff

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