South African telecoms industry calls for OTT platforms to share network maintenance costs

The South African telecoms industry, represented by the Association of Comms and Technology (ACT), is intensifying its push for digital content and service providers, known as over-the-top (OTT) platforms, to contribute financially to expanding and maintaining the country’s network infrastructure. OTT platforms, including popular services like streaming video, audio, and messaging, account for a substantial portion of internet traffic and depend on robust network infrastructure to operate effectively.

Central to this proposal is the concept of ‘fair share’ arrangements, which suggest that OTT providers should contribute to the costs associated with building and maintaining the networks that support their services. Mobile operators like Vodacom and MTN spend approximately 41 billion rand (around $2 billion) annually on network expansion.

By implementing fair share contributions, the ACT believes resource usage can be balanced, incentivising network operators to invest further in infrastructure. This collaborative approach supports the sustainability of the telecom sector and enhances the quality of service provided to consumers.

Additionally, the ACT calls for a regulatory framework in South Africa that would bring OTT service providers under the same licensing and policy regime as traditional network operators. That would ensure a fair and sustainable digital services sector, allowing for better oversight and collaboration between different players in the industry. MTN Group CEO Ralph Mupita supports the initiative but warns against harsh measures, emphasising the need for cooperation to sustain future developments and the telecom industry’s health.