The South African Telecom Industry Wants Tech Firms To Help Fund Infrastructure

South Africa’s telecoms industry body wants digital content and service providers to help pay for the rollout of network infrastructure because they generate a huge part of the internet traffic.

Details

The Association of Comms and Technology (ACT) CEO Nomvuyiso Batyi said that the revenues generated by over-the-top (OTT) platforms was dependent on the availability of high-quality, reliable, and efficient network infrastructure.

The ACT wants a collaborative approach that looks at how OTT service providers can be regulated like network operators and brought into the country’s licensing and policy regime.

Why This Matters

OTT platforms or services deliver digital content such as video, audio and messaging directly to consumers over the internet.

A “Fair share” arrangement ensure that OTT providers contribute to the costs of building, maintaining, and upgrading the infrastructure that supports their business.

By The Numbers

Mobile operators such as Vodacom group and MTN Group spend up to 41 billion rand ($2 billion) annually in expanding their network.

What They’re Saying

MTN Group CEO Ralph Mupita pointed out that the tech sector had helped sub-sea cable investment around the continent.

“I think if you’re too punitive, you can destroy that whole broader eco-system and there needs to be some share of that investment that is more like operational expenses than capital expenditure,” Mupita said.