South Africa's Independent Communications Authority (ICASA) is launching a market inquiry into the impact of over-the-top (OTT) services such as Netflix and WhatsApp on the country's traditional broadcasting industry. This investigation, part of ICASA's 2026/27 Annual Performance Plan, aims to address concerns that these platforms are disrupting conventional broadcasting by competing for audiences and advertising revenue. ICASA plans to issue a findings document by the end of the 2026/27 financial year, followed by a discussion paper in 2027/28.
A key aspect of this inquiry is the "Fair Share" argument, which proposes that major OTT platforms should contribute to the costs of network infrastructure they utilize. The Association of Communications and Technology (ACT), representing major South African telecommunication companies like MTN, Vodacom, Telkom, Rain, Cell C, and Liquid, has actively supported this idea. These telecom providers argue that OTT services consume significant bandwidth without adequately contributing to the maintenance and upgrade of the underlying network infrastructure, especially concerning efforts to bridge the digital divide.
While some, including Vodacom, highlight that the bulk of mobile network data usage is driven by third-party services, leading to increased obligations for operators without proportional relief, Cell C acknowledges the critical role of OTT platforms in driving innovation and consumer demand. However, Cell C also emphasizes that any value-sharing approach should be carefully considered, evidence-based, and developed through constructive engagement to avoid unintended consequences like increased costs for consumers, reduced innovation, or dampened investment in the nascent digital economy. This inquiry signifies a broader national conversation in South Africa about modernizing regulation without negatively impacting consumers.
