ACT urges OTT platforms to invest in SA's network infrastructure

The Association of Comms and Technology (ACT) has called for over-the-top (OTT) platforms to help pay for the rollout of network infrastructure in South Africa.

Speaking at the launch of a new ACT white paper last week, ACT CEO Nomvuyiso Batyi said these platforms needed to pay because they generate a huge part of Internet traffic.

Furthermore, Batyi told Connecting Africa that the revenues generated by OTT platforms depended on the availability of high-quality, reliable and efficient network infrastructure.

"We are saying that the OTTs should contribute towards the costs of building, maintaining and upgrading the infrastructure that supports their business," Batyi said.

ACT's whitepaper has proposed the idea of 'Fair Share', which requires that OTT service providers – as high-bandwidth users of broadband networks – should pay network operators for the capacity they take up on the networks so that they, the operators, have more capital to maintain and upgrade their infrastructure.

"This helps balance the use of resources and creates an incentive for network operators to invest in network infrastructure to support the growing demands of digital services," Batyi continued.

Fair Share's ins and out

ACT's paper added that contributions should be determined through mutual agreements on usage charges.

"The rapid rise of OTT services like Netflix, TikTok, WhatsApp, and Skype has transformed how consumers access and engage with digital content, but it has also presented unique challenges for network operators who bear the costs of maintaining and upgrading the infrastructure these services rely on," Batyi explained.

Fair Share requires OTT service providers to pay network operators for the capacity they take up on networks.(Source Image by Freepik).

She added that the paper outlines key considerations for policymakers and regulators as they navigate this evolving landscape.

Furthermore, she said ACT advocates for a regulatory environment where OTT providers contribute to the telecom ecosystem in a way that reflects their growing influence and market share.

"We believe that a fair and balanced regulatory framework is crucial—one that acknowledges the contributions of both OTT players and network operators while promoting sustainable growth and broader access to broadband across the country," she concluded.

— Matshepo Sehloho, Associate Editor, Connecting Africa