South Africa’s telecommunications companies are requesting large streaming platforms like Netflix and YouTube to contribute to network costs.
The Association for Communications and Technology (ACT) is pushing for a “Fair Share” model, asking these OTT services to help with network upgrades and maintenance, arguing that they benefit the most from existing telecom infrastructure.
MTN and Vodacom support this idea, as they believe that while OTT platforms invest in submarine cables, the heavy burden of building and maintaining local networks falls on telecom operators.
Vodacom emphasizes that the demand for data is skyrocketing due to streaming services, and despite heavy investments from telecom companies, it is extremely difficult to meet this demand at a sustainable pace.
Additionally, Vodacom points out that network operators already contribute to digital inclusion through social obligations, license fees, and taxes. However, since streaming platforms are the main drivers of internet traffic, they argue that it is only fair for them to help fund network expansion.
The prevailing view among telecom companies is that OTT platforms generate revenue by using telecom networks, and therefore they should contribute to their upkeep. If this development follows the path suggested by telecom companies, it could create a better balance in the industry.
Contributions from streaming giants could stimulate more investment, which could then be used to improve connectivity and services.