South Africa's telecoms industry is calling for tech companies to contribute financially towards the expansion of network infrastructure, arguing that they heavily benefit from the existing network without bearing a fair share of the costs.
The Association of Comms and Technology (ACT) is advocating for a "fair share" arrangement whereby over-the-top (OTT) platforms that deliver digital content such as video, audio, and messaging directly to consumers contribute to the construction, maintenance, and upgrade of the network infrastructure on which they rely.
Nomvuyiso Batyi, CEO of ACT, argued that the success of OTT platforms depends on a robust network infrastructure, but they are not currently contributing enough to its upkeep.
So, "what we're saying is that the OTTs should contribute towards the network upgrades, the network building," Batyi added.
Mobile operators such as Vodacom and MTN Group are investing heavily in expanding their networks, spending up to 41 billion rand ($2.3 billion) annually. The ACT proposed a collaborative approach where usage charges are mutually agreed upon to ensure a fairer distribution of costs.
While acknowledging the complexity of calculating fair contributions, the ACT stressed the need for a regulatory framework that regulates OTT service providers similarly to network operators.
MTN CEO Ralph Mupita acknowledged the role of the tech sector in fostering sub-sea cable investments but cautioned against overly punitive measures that could stifle innovation. He suggested a model where contributions focus on operational expenses rather than capital expenditure.