In a recent statement, Mothibi Ramusi, chairman of ICASA, expressed the view that any entity using another’s infrastructure should make a contribution. He emphasised the complexity of the issue and the need for collaboration among all parties to find a fair resolution.
Following this, a poll was conducted to gauge public opinion on the matter, revealing a divided sentiment: 42% believe OTTs should directly pay telcos, 40% oppose any financial contribution, and 18% support taxation.
Meanwhile, the Association of Communication Technology of South Africa (ACTforSA) has called for collaborative and balanced solutions to address the issue, emphasising the need for industry stakeholders to work together to find a solution that serves the best interests of South Africa’s digital economy.
ACTforSA CEO Nomvuyiso Batyi stated, “We are in the process of developing the second phase of opinions on this matter. Our aim is to encourage industry stakeholders to collaborate in finding a solution that serves the best interests of South Africa’s digital economy.” The white paper, Promoting Equitable Participation and Sustainable Growth: Exploring Policy, Commercial, Competition, and Socio-Economic Perspectives in South Africa’s Over-the-Top (OTT) and Telco Ecosystem, was launched last month.
ACTforSA recommends that South African policymakers and regulators work with network operators and OTT service providers to gather data on OTTs’ impact on regulated and unregulated services to ensure fair competition, innovation, and customer welfare.
Batyi stressed the need to consider the broader ecosystem, stating, “It’s important to approach this topic with balance, considering the sustainability of South Africa’s digital economy.” She emphasised the importance of a balanced solution that ensures fairness while promoting innovation and growth in the sector.
Regarding financial models for OTT contributions to network infrastructure rollout, Batyi mentioned that ACTforSA envisions commercial agreements between OTTs and telecom operators, with regulatory oversight to ensure transparency and fairness.
She highlighted that a collaborative approach is key to achieving a fair and sustainable outcome for all stakeholders, emphasising the importance of ensuring contributions support the ongoing expansion of infrastructure, especially in underserved areas.
ACTforSA has also warned that inaction could lead to a misalignment between regulatory frameworks and technological advancements, potentially compromising the competitiveness of South Africa’s digital economy.
