- The Association of Communications and Technology in South Africa is advocating for digital content and service providers to contribute financially to the development of network infrastructure.
- The call to action comes as these over-the-top platforms are recognised as significant drivers of internet traffic, highlighting the importance of high-quality network infrastructure to their success.
OUR TAKE
The South African telco industry’s call for tech firms to help fund infrastructure is a strategic move to ensure the continued growth and success of the digital ecosystem. By involving OTT providers in the financial support of network infrastructure, the industry aims to create a sustainable model that benefits all stakeholders and meets the evolving demands of digital services.
–Rebecca Xu, BTW reporter
What happened
South Africa’s telecommunications industry is urging technology firms to contribute to funding the expansion of network infrastructure, citing the significant internet traffic generated by digital content and service providers. The Association of Comms and Technology (ACT) CEO, Nomvuyiso Batyi, emphasised that the success of over-the-top (OTT) platforms relies on the availability of high-quality network infrastructure and called for these providers to assist with building and upgrading networks to support their operations.
The industry body is advocating for a “fair share” model where OTT platforms contribute to the costs associated with network upgrades, maintenance, and expansion. The proposed collaboration aims to ensure a balanced utilisation of resources and incentivise network operators to invest in the necessary infrastructure to meet the increasing demands of digital services. Mobile operators like Vodacom Group and MTN Group invest billions annually in network expansion and the paper suggests determining contributions through mutually agreed upon usage charges.
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Why it’s important
South Africa’s telecom industry urging tech firms to fund network infrastructure expansion seeks to ensure fair resource utilisation and incentivise network investments. By involving over-the-top (OTT) platforms in funding upgrades, the industry aims to support the growing demand for digital services and enhance internet connectivity quality.
This collaborative approach fosters a more robust digital ecosystem, emphasising shared responsibility and industry cooperation. Encouraging shared investment in infrastructure reflects the evolving dynamics of the digital economy, promoting sustainability and innovation in the tech sector. The initiative sets a precedent for industry collaboration and shared investment, driving technological advancement and connectivity in South Africa.
