South Africa’s ACT Urges OTT Providers to Invest in Network Infrastructure
## The Debate on OTT Services and Infrastructure Costs
The ongoing discussion surrounding whether over-the-top (OTT) services should contribute financially for the infrastructure they utilize has resurfaced, particularly in South Africa. An industry organization is advocating for digital content and service providers to aid in funding the rollout and modernization of network infrastructure.
### Infrastructure and OTT Success
Nomvuyiso Batyi, the CEO of the Association of Comms and Technology (ACT), emphasizes that the success of the OTT model relies heavily on the presence of high-quality, dependable, and efficient network infrastructure. This underscores the critical role that robust infrastructure plays in the digital content ecosystem.
The concept of a “fair share,” which involves OTT platforms contributing to infrastructure costs, has been discussed for some time. Batyi’s viewpoint is echoed by others who believe that these service providers should play a part in the expenses associated with developing, maintaining, and upgrading the systems that facilitate their operations.
### Incentives for Network Operators
By receiving support from OTT providers, network operators would have greater motivation to invest in infrastructure that can keep pace with the surging demands of digital services. An ACT paper released recently articulates this perspective, detailing how collaboration can enhance the overall digital environment.
According to reports from Reuters, major mobile operators like Vodacom Group and MTN Group invest up to $2 billion annually in expanding their networks. This investment facilitates the OSC platforms, which in turn benefit from this expansion.
### Collaborative Regulation Efforts
The ACT proposes that contributions from OTT providers be established through mutual agreements concerning usage charges. However, determining equitable contributions is recognized as a complex challenge. Reuters further notes that ACT advocates for a collaborative approach to regulating OTT service providers similarly to how network operators are managed.
### Global Context and Similar Initiatives
This notion isn’t unprecedented; MTN Group CEO Ralph Mupita highlights that the tech industry has already contributed to subsea cable investments across the continent. Internationally, organizations are also weighing in. For example, a recent call from GSMA Latin America urged policymakers to develop flexible schemes that ensure equitable contributions from all participants in the digital ecosystem.
Earlier in January, the Cellular Operators Association of India (COAI) released a white paper advocating for OTT players, which generate significant traffic, to share in the costs of network upgrades. This is aimed at fostering sustainability within the telecom industry.
The dialogues surrounding OTT contributions to infrastructure costs are poised to continue as stakeholder interests align with the development of equitable frameworks for all parties involved.
How do you think the OTT industry can better support the infrastructure it relies on?
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