The telecom industry is an industry that has to deal with a continuous rapid changing business and technological environment, unlike other industries. Traditionally, the principal revenue streams for telecom operators have been the voice and messaging (SMS) with data coming in at a far third till recently. The internet explosion has led to the inception of diverse internet applications and services amidst which, OTT is one. The proliferation of Internet-based services and applications has given rise to data traffic increase for telecom operators. The growing impact of OTT services on telcos’ voice and messaging revenue is a widely accepted phenomenon that is making telecom operators lose revenue in a rapid manner. Other than the challenges OTT pose on telecom industries, the threat it also poses to national security as a result of its operation under net neutrality is a critical point that needs to be considered. This article highlights the wide adoption of OTT services, its’ devastating impact on telecom operators and its impact on national security.