South Africa’s telecom giants, Vodacom and MTN, are urging popular streaming platforms like Netflix and YouTube to contribute to network costs. The Association for Communications and Technology (ACT) is advocating for a “Fair Share” model, which would require over-the-top (OTT) services to help fund network upgrades and maintenance, arguing that these platforms benefit most from existing telecom infrastructure.
According to MyBroadband, both MTN and Vodacom support the proposal, noting that while OTT platforms invest in undersea cables, the responsibility of building and maintaining local networks largely falls on telecom operators. Vodacom emphasized that demand for data is surging due to streaming services, and despite heavy investment, telcos are struggling to keep pace sustainably.
A key concern is rural connectivity. Vodacom pointed out that network operators already contribute to digital inclusion through social obligations, license fees, and taxes. However, since streaming platforms drive the majority of internet traffic, it seems fair for them to also help fund network expansion into underserved areas.
The ACT asserts that OTT platforms generate revenue by utilizing telecom networks and, as a result, should contribute their fair share. They believe this would help balance the industry and prevent telcos from bearing the entire financial burden. A new regulatory framework is being proposed to ensure both large and small network operators benefit.
The ACT warns that if OTT services don’t help fund network development, telcos may be less inclined to invest in better infrastructure. Fair contributions from streaming giants could encourage more investment, ultimately leading to improved connectivity and better service for users.
The ACT’s objective is to create a system that is fair, flexible, and non-disruptive, ensuring high-quality services for South Africans. Achieving this requires clear regulations, collaboration between industry players, and a balanced approach to promote fair competition and sustainable growth.
