South Africa’s communication regulator is launching an investigation into over-the-top (OTT) platforms, including popular services such as WhatsApp and Netflix, reigniting discussions about their impact on the country’s telecommunications and broadcasting industries.
The Independent Communications Authority of South Africa (ICASA) outlined plans in its 2026/27 Annual Performance Plan to conduct a detailed market inquiry into OTT services. This initiative aims to assess the impact of internet-based platforms that offer messaging, video, and streaming content, with the findings culminating in a discussion paper that may guide future regulations.
OTT services have become increasingly influential, capturing a significant portion of mobile data traffic and competing directly with traditional telecom offerings such as SMS, voice calls, and pay television. As consumer preferences shift toward these data-driven services, ICASA’s review will examine how this transition affects incumbent telecom operators and broadcasters.
A central theme of the inquiry is the “fair share” debate, which questions whether major digital platforms should contribute to the network infrastructure they use. This discussion is not new; ICASA first raised concerns about the impact of messaging platforms on telecom revenues back in 2016. Since then, the telecom landscape has further evolved, prompting renewed calls from industry stakeholders for regulatory interventions that ensure digital platforms share the burden of local infrastructure investments.
The telecom sector is experiencing a fundamental shift, with traditional revenue streams from voice calls and SMS declining sharply as consumers increasingly turn to data-intensive services provided by OTT platforms. Many operators find themselves in a challenging predicament: they invest heavily in network infrastructure, yet a large portion of the value generated on these networks benefits global tech companies.
South Africa’s initiative reflects a global trend, as regulators in regions such as the European Union and parts of Asia also explore the necessity for companies like Netflix and Google to contribute to telecom infrastructure costs in light of the substantial data growth driven by their services. However, critics warn that such measures could disrupt market competition and raise consumer costs.
In the future, ICASA is set to engage stakeholders in market inquiries before publishing a discussion paper exploring various regulatory options. These could range from maintaining a light-touch approach to imposing new obligations on OTT platforms, including financial contributions based on network usage. As ICASA embarks on this inquiry, it emphasises the growing urgency of reassessing regulatory frameworks designed for a pre-Internet era in today’s increasingly digital economy.
