South Africa’s leading telecom operators, Vodacom and MTN, are calling on streaming giants like Netflix and YouTube to contribute financially toward the maintenance and expansion of the country’s network infrastructure. This push comes under the “Fair Share” model proposed by the Association for Communications and Technology (ACT), which seeks to address the growing strain on telecom networks caused by surging data demand.
Streaming platforms, categorized as over-the-top (OTT) services, rely heavily on telecom infrastructure to deliver content but currently do not contribute directly to its upkeep. Vodacom and MTN argue that while OTT players invest in undersea cables, the burden of building and maintaining local networks falls disproportionately on telecom operators. With data traffic driven largely by streaming services, telcos face unsustainable costs despite significant investments in infrastructure.
One of the key concerns raised is rural connectivity. Vodacom highlighted that network operators already shoulder social obligations, license fees, and taxes while working to close the digital divide. However, they believe OTT platforms should also fund network expansion in underserved areas since they are major drivers of internet traffic.
The ACT is advocating for a regulatory framework to ensure fair contributions from OTT platforms. This would help balance costs between telecom operators and streaming services, fostering sustainable growth in the industry. The goal is to encourage further investment in network infrastructure, ultimately improving connectivity and service quality for users.
While telcos argue that OTT platforms benefit disproportionately from their networks, streaming giants contend they already invest significantly in international bandwidth. The debate mirrors global discussions about how to equitably share the costs of internet infrastructure.
If implemented, this policy could reshape South Africa’s digital ecosystem, ensuring both telcos and OTT platforms play a role in supporting the country’s connectivity needs.
