The Association for Communications and Technology (ACT) is advocating for a “Fair Share” model that would require over-the-top (OTT) services to contribute to funding network upgrades and maintenance. This proposal has garnered support from major telecom operators, MTN and Vodacom.

According to the ACT, OTT services, such as streaming platforms, benefit significantly from existing telecom infrastructure, yet they do not contribute to its maintenance and upgrades. Telecom operators, on the other hand, bear the bulk of the costs for building and maintaining local networks.

Vodacom highlighted the rapid growth in data demand driven by streaming services, which has put a strain on telecom operators to keep up with the pace of network upgrades. The company emphasized the need for OTT platforms to contribute to funding network expansion, particularly in rural areas.

The ACT argues that OTT platforms generate revenue by utilizing telecom networks, and therefore, they should contribute their fair share to ensure the sustainability of the industry. A new regulatory framework is being proposed to ensure that both large and small network operators benefit from this model.

If OTT services do not contribute to funding network development, the ACT warns that telecom operators may become less willing to invest in better infrastructure. Fair contributions from streaming giants could encourage more investment, leading to improved connectivity and better services for users.

The ACT’s goal is to establish a system that is fair, flexible, and non-disruptive, ensuring quality services for South Africans. To achieve this, clear regulations, close collaboration between industry players, and a balanced approach that promotes fair competition and sustainable growth are necessary.