JOHANNESBURG, Gauteng — South African telcos are officially demanding that major OTT platforms contribute financially to the maintenance and expansion of local network infrastructure. The push, spearheaded by the Association of Communications, highlights a growing friction between local network operators and global tech giants like Netflix, WhatsApp, and YouTube. While the telecommunications sector argues that these platforms must help foot the bill for the massive data traffic they generate, digital marketing strategist Mongezi Mtati warns that the solution requires looking beyond just the “pipes” to focus on modern consumer expectations.
The Telco Perspective: The “Fair Share” Argument
The Association of Communications—an industry body representing heavyweights such as Vodacom, MTN, Telkom, Cell C, Rain, and Liquid—has been vocal about this issue since at least 2023. Their core argument is straightforward: Over-The-Top (OTT) services drive unprecedented data consumption, ranging from high-definition streaming to endless voice notes, while generating substantial advertising revenue. Meanwhile, traditional telcos are watching legacy voice and SMS revenues plummet while bearing the massive capital costs of upgrading and upkeeping the physical networks that make these OTT services possible.
The Strategist’s View: Outdated Models and the Road Analogy
Despite the financial logic presented by the operators, Mtati argues that this perspective ignores the historical context of how these networks were originally built. Telecommunications infrastructure was designed primarily for voice calls and basic text messaging. Over the last five years, consumer behavior has radically shifted toward data-heavy streaming and messaging, yet the underlying business models of the telcos have struggled to adapt to this new reality.
To illustrate this disconnect, Mtati uses the analogy of the government constructing a major highway between Richards Bay and Gauteng. If the government then demanded that truckers pay a toll simply for using the newly built road, it would be a highly simplified approach to infrastructure funding. In the digital realm, users are no longer traveling in the “buses and taxis” of the past; they are navigating the network in entirely different, data-driven “vehicles,” meaning the construction of the network hasn’t kept pace with the change in how the “road” is used.
Data Sales and the Fiber Boom
Furthermore, the narrative that telcos are losing out entirely is contested by the reality of modern data sales. While users may have abandoned traditional pay-TV like DSTV for streaming, they now purchase mobile data from their network providers to access those very OTT platforms. According to the telcos, this data revenue is not sufficient to offset their losses, but from a consumer perspective, it represents a shift in how they access entertainment.
The most significant battleground for connectivity has actually shifted to Fiber to the Home (FTTH). According to township consumer experience reports tracked over the past five years, residents in township areas are increasingly adopting and finding immense value in FTTH. Interestingly, the companies leading this fiber revolution are not the legacy telecom giants that dominated the market 15 or 20 years ago, but rather newer, more agile market entrants.
The Experience Economy vs. Forced Payments
When questioned whether local mobile network operators possess the leverage to force global OTTs to pay, Mtati’s assessment is blunt: they do not.
Globally, the debate over network cost-sharing remains highly fragmented. The United States relies on shared commercial value agreements, while South Korea’s attempt to implement a “sender pays” model in 2016 resulted in a messy aftermath. European regulators debated the issue but ultimately stalled halfway through. In many Western jurisdictions, OTTs have only been forced to contribute after being taken to court. Currently, there is no public evidence of amicable, direct negotiations taking place between South African telcos and global tech platforms.
Instead of forcing levies, the real opportunity lies in the “experience economy.” Consumers do not purchase a network brand; they buy a seamless digital experience. To retain users, telcos are increasingly zero-rating specific applications and offering data discounts. By ensuring a high-quality experience for platforms like WhatsApp, operators encourage users to stay on their network for all their communication needs, including traditional calls.
Government Intervention and Consumer Protection
The final wildcard in this debate is the South African government. With the state actively seeking new revenue streams to bolster the fiscus, there is speculation that policymakers could step in to compel OTTs to pay a specific tax or infrastructure levy.
However, Mtati cautions that any commercial agreements or government interventions must not come at the consumer’s expense. South African users have long complained about high data prices and strict usage limits—grievances that have often been ignored in broader industry debates. Ultimately, the winning strategy for both telcos and OTTs is to provide affordable, high-quality data access. As data consumption continues its inevitable upward trajectory, the companies that lead in consumer value will be the ones that thrive.