In South Africa, the Association of Comms and Technology (ACT), representing various mobile and broadband companies, has released a position paper advocating for streaming companies like Netflix and Spotify to contribute to the cost of network infrastructure.
The paper, titled “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”, addresses the ongoing debate about over-the-top companies benefiting from broadband networks without compensating network providers apart from increased data demand.
The paper acknowledges that OTT services offer users more control and freedom in content consumption but stresses the need for high-quality, reliable network infrastructure to support their success. With the exponential growth of connected devices and OTT applications contributing to a significant increase in data consumption, network operators face the challenge of continuously upgrading and expanding their infrastructure.
ACT emphasises the importance of evidence-based decision-making to address commercial implications in the OTT and telecommunications sector, calling for regulations and frameworks that align with the evolving digital landscape. The paper proposes a model where services like Netflix should contribute their fair share to the costs of building, maintaining, and upgrading the supporting infrastructure.
Arthur Goldstuck, MD of World Wide Worx, highlights the longstanding debate surrounding OTT regulation, citing operators’ desire for these services to contribute to the data demand they generate. He believes a regulatory framework should focus on enablement rather than restriction.
According to ICT veteran commentator Adrian Schofield, in 2023, the Independent Communications Authority of South Africa (Icasa) reported a substantial increase in total fixed internet and data revenue, emphasising the significance of who pays and how they pay for infrastructure.
The article illuminates the ongoing discussions in the telecommunications industry about equitable contributions to infrastructure costs amid the changing landscape of digital technology.
