Regulatory Clarification on VoIP and Over-the-Top Services

In 2024 the Cambodian authorities issued clarifications concerning the regulatory treatment of voice over internet protocol (VoIP) and over-the-top (OTT) communications services. The clarifications respond to a growing category of services that deliver voice, messaging and multimedia communications to Cambodian users over the public internet, often provided by international platforms rather than by locally licensed telecommunications operators.

The clarifications aim to distinguish clearly between services that fall within the traditional scope of telecommunications licensing and those that do not, while addressing specific concerns about consumer protection, security, cooperation with the authorities and fair competition with licensed operators.

The clarifications distinguish between services that use IP technology to deliver voice or messaging over Cambodian telecommunications networks and services that are simply accessible over the public internet in a manner comparable to any other application. Services that rely on numbering resources, that interconnect with the public switched telephone network or that are marketed as substitutes for traditional telephone services are typically treated as within the scope of telecommunications licensing.

By contrast, services that operate purely between users of the same application, that do not use numbering resources and that do not interconnect with traditional voice networks are typically treated as internet applications and are not subject to the same licensing regime, although other rules may apply to them, including consumer protection and, where relevant, obligations addressed to online service providers.

Providers that offer VoIP services that fall within the scope of telecommunications licensing are expected to hold the appropriate licence or authorisation, to comply with obligations relating to interconnection, numbering, service quality, consumer protection and cooperation with the authorities, and to be identifiable to the regulator through registration and reporting. The clarifications describe how these obligations apply to VoIP-specific characteristics, including the treatment of caller identification, emergency call routing and location information where technically feasible.

Enterprises that deploy VoIP as part of internal telecommunications systems should distinguish between services that they use internally or provide to a defined group of users and services that they offer to the public. Public-facing services are more likely to attract licensing obligations, while purely internal or closed-user-group services may be treated differently.

The clarifications recognise that a significant volume of person-to-person communication in Cambodia now takes place through OTT applications. The authorities generally do not seek to impose full telecommunications licensing obligations on such applications, provided they do not perform functions that closely resemble those of a public telecommunications service. However, providers of such applications may be expected to cooperate with the authorities on specific matters, including content that is unlawful under Cambodian law, fraud that affects Cambodian users and, where relevant, requests made under applicable legal processes.

Consumer protection considerations remain relevant. OTT communications providers should ensure that their services are described accurately to Cambodian users, that appropriate mechanisms exist for reporting abuse and that data collected from Cambodian users is handled in accordance with applicable data protection obligations.

The clarifications acknowledge that the interaction between licensed operators and OTT providers raises competition considerations. Licensed operators bear significant infrastructure investment and regulatory obligations, while OTT providers can reach Cambodian users through connectivity provided by those operators. The authorities aim to strike a balance between preserving the ability of Cambodian users to access innovative online services and ensuring that licensed operators are able to sustain investment in the underlying networks.

Measures that would inappropriately favour or disadvantage particular OTT providers, or that would compromise the neutrality with which licensed operators handle traffic, are not encouraged. At the same time, licensed operators are entitled to expect that the framework does not require them to bear obligations from which comparable OTT providers are exempt without justification.

For services that fall within telecommunications licensing, security and lawful cooperation obligations apply as they would to any other licensed service. For OTT providers, obligations are typically more limited but may include cooperation with law enforcement in matters affecting Cambodia and the removal or restriction of specific unlawful content. Providers should have clear internal procedures for handling requests, for verifying their legal basis and for responding in a manner consistent with applicable data protection rules.

Where a provider operates internationally, conflicts of law and questions of extraterritorial reach may arise. Legal advice is often required to develop procedures that respect Cambodian obligations while managing constraints imposed by other jurisdictions.

Enterprises and public sector organisations that rely on VoIP or OTT communications should understand which services they use, how those services interact with Cambodian licensing and which obligations may apply in their particular context. This is particularly important where enterprises use VoIP for external customer-facing communications, where public sector organisations rely on OTT services for citizen communication or where security-sensitive information is exchanged through such services.

Procurement and use of such services should be informed by an assessment of regulatory status, of data protection considerations and of resilience, so that the resulting arrangements are aligned with the organisation's overall risk management framework.

For providers of VoIP services, the clarifications call for a review of the licensing status of each service offered in Cambodia and of the operational arrangements that support compliance with the applicable obligations. Where licensing is required and has not been obtained, appropriate steps should be taken to regularise the position, whether through direct licensing or through arrangements with a licensed partner.

For OTT providers, the clarifications call for a review of the arrangements in place to handle Cambodian users, including terms of service, consumer information, complaint handling, cooperation with authorities and data protection. Providers should also consider engagement with the authorities to build constructive working relationships and to anticipate future policy developments.

For licensed operators, the clarifications are a useful reference for engagement with the regulator on competition and network management issues raised by OTT services, and for internal decisions on the design of retail and wholesale offers that interact with such services.

Lex Civora advises VoIP providers, OTT providers, licensed operators and enterprise users on the interpretation and application of the clarifications, on the design of compliant arrangements and on engagement with the authorities on matters relating to VoIP and OTT services in Cambodia.