Petrus Potgieter, a decision sciences professor at Unisa and an associated partner at telecoms consultancy Strand Consult, has proposed that streaming entertainment giants like Netflix should pay South African telecommunications operators for access to their broadband subscribers.
This idea is part of the Fair Share Initiative developed by European operators, with support from Vodacom Group parent Vodafone Group, aimed at ensuring sustainable investment in the region’s communications networks.
The proposal suggests that large traffic generators such as Netflix and YouTube should contribute their “fair share” to access the networks. Potgieter argues that content providers benefit significantly from access to better connectivity but do not proportionately contribute to the sustainability of the networks. He believes it is only fair that they contribute to ensure equitable investment in infrastructure.
Notably, Vodacom Group CEO Shameel Joosub and MTN Group CEO Ralph Mupita have expressed their support for a similar initiative in South Africa, indicating a level of acceptance within the industry.
Potgieter highlighted the high-cost investment model and heavy regulation faced by broadband providers, juxtaposed with the more containable fixed costs and copyright protections enjoyed by content providers. He emphasized the need for commercial agreements between content and access providers, recognizing that there is no one-size-fits-all solution to the issue.
The proposal has been met with resistance, but Potgieter believes that regulated per-gigabyte fees, similar to call termination rates, could make sense for the market and ensure fair compensation for network usage by content providers.
Overall, the debate surrounding whether streaming services should pay for access to telecom networks in South Africa continues, with various stakeholders expressing differing viewpoints on the matter, indicating that the issue is still open for discussion.
