Broadcasting28.05.2025

WhatsApp and Netflix must pay Vodacom and MTN in South Africa

The Association of Communications and Technology (ACT) says over-the-top (OTT) players like Netflix, YouTube, and WhatsApp should contribute to the cost of building and maintaining South Africa’s networks.

Speaking to eNCA, ACT CEO Nomvuyiso Batyi explained that these companies consume a lot of bandwidth within South African networks, without contributing towards their upkeep or expansion.

“It is time to get tough, especially to those over-the-top players who use a lot of bandwidth, especially in the form of video. They generate a lot of traffic,” she said.

“We are saying that there are a number of options that they can look at, but they need to contribute towards the maintenance and the building of the infrastructure within the South African context.”

According to Batyi, OTT players in South Africa and globally have long benefited from the lack of a requirement to contribute to network costs.

She said this could be achieved through a tax or through building their infrastructure for everyone’s benefit.

Batyi explained that streaming players have thus far only invested in local infrastructure for their own benefit.

“You will see, with the members that I represent, they would go out of their way to share infrastructure with other players,” she said.

For example, Batyi explained that local broadcasters must pay signal distribution fees. If they are satellite-based, they must also pay a satellite network operator.

“However, it’s not the same with the over-the-top players. They are the ones who make money. There’s no sharing of revenue with anyone. They get to keep everything themselves,” she said.

“We are saying that because they’re using a lot of the bandwidth within the networks, they have to contribute. They have to make sure that they put in money.”

She compared the trend of OTT players not contributing to the government “lowering the bar” for new entrants — likely referring to recent moves to introduce equity equivalents for telecoms licences.

“These people must contribute towards universal connectivity. They must come in with the same requirements so far as BBBEE is concerned,” said Batyi.

“If there is a relaxation of rules, the relaxation should not only apply to the new entrants.”

Vodacom weighs in

Vodacom previously told MyBroadband that although mobile network operators take on infrastructure costs to provide mobile and fixed services to customers, OTT players benefit disproportionately.

“Today, the bulk of the data usage on mobile networks is attributed to services not provided by the MNOs, yet the MNOs get little relief in terms of obligations,” a spokesperson said.

Moreover, the mobile network operator said its obligations have expanded over time.

“Network traffic has increased significantly over the past few years, and it has been driven by platform services,” the spokesperson said.

“In spite of the massive network investments made by telco operators, the pace of data demand has outstripped the feasible rate of investment within the sector.”

They added that players controlling the large platform services haven’t invested sufficiently in the ground, which matters most in South Africa.

“It is clear that the connectivity ecosystem requires a further injection of investment to ensure that we close the digital divide,” the spokesperson said.

“We believe that both telco operators and OTTs have a valuable role to play, and government should ensure an enabling ICT infrastructure ecosystem is maintained, and ideally grown.”

According to Vodacom, OTT players are platforms or services that deliver digital content directly over the Internet, including video, audio, and messaging.

OTT players like Netflix, Google, and Facebook already pay for much of the international bandwidth required to transmit their content to South Africa.

However, Vodacom said the data shows that the most significant investment gap lies in the access network.

“MNOs are already overburdened with social obligations, license fees, spectrum fees, and universal service fund contributions,” the spokesperson said.

“To close the digital divide, we need all hands on deck, and all stakeholders must play their part.”

They added that OTTs should see this as an opportunity to make an ongoing, meaningful, and dependable contribution to the society that enables their businesses.

“We support a level playing field and hope that as part of their social contract with South Africans, the OTTs will come to the table,” they said.

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