ICASA market inquiry into over-the-top services with network infrastructure and OTT app icons

South Africa's communications regulator has opened an inquiry that could revive calls for major online platforms, including WhatsApp, Netflix and YouTube, to contribute toward local network infrastructure. No new charge is on the table yet, but the formal process ICASA has started could reshape how these services are regulated.

The Independent Communications Authority of South Africa (ICASA) has published a notice of intention to investigate the effect of over-the-top services, or OTT, on licensed telecommunications, broadcasting and postal providers.

The inquiry does not introduce a new charge for online platforms. Instead, it will examine how services delivered over the internet affect licensed operators and whether South Africa's regulatory framework remains appropriate.

That distinction matters. Any requirement for global platforms to pay mobile networks such as Vodacom and MTN would need to follow the inquiry process and any later policy or regulatory action.

What is behind the fair share debate

The debate revolves around the fair share principle, which has gained support from the Association of Communications and Technology. The industry body represents major operators including Cell C, Liquid, MTN, Rain, Telkom and Vodacom.

Its position is straightforward. High-traffic services such as video streaming, messaging and social platforms depend on expensive network infrastructure, while operators carry the cost of building and maintaining that infrastructure. The association argues that large OTT providers should contribute to the investment required to expand and upgrade networks.

Supporters and critics

Supporters of the idea say the model could help fund better connectivity and network capacity, particularly as demand for streaming video and online communications grows.

Critics are likely to raise concerns about net neutrality, consumer prices and whether platform payments could ultimately be passed on to South African users. The issue is also complicated by the global nature of platforms such as YouTube, Netflix and WhatsApp, which do not operate in the same way as locally licensed network providers.

Wider than mobile networks

ICASA's inquiry has a wider scope than mobile networks. It will assess the impact of OTT services on licensees in the telecommunications, broadcasting and postal sectors.

The inquiry follows earlier concerns that global streaming services compete with regulated local broadcasters for audiences and advertising or subscription revenue, while facing different regulatory obligations. Government policy discussions have also considered issues such as local-content requirements and the tax treatment of international streaming platforms.

What happens next

The regulator will begin by allowing stakeholders 10 working days to submit questions for clarity. It will then publish a discussion document for 45 working days of public comment. ICASA may also hold public hearings before releasing its findings.

For now, there is no requirement for WhatsApp, Netflix, YouTube or other OTT services to pay South African network operators. But ICASA's inquiry creates a formal process that could shape how these platforms are regulated in the country in the years ahead.

Sources

Share this article