Expanding and maintaining robust network infrastructure is essential for improving internet accessibility, supporting economic growth and fostering innovation across Africa. The push for tech companies to contribute to network infrastructure costs is crucial for development, as it addresses the continent's growing digital demand.

South Africa's telecoms industry is urging technology companies to financially support the expansion of network infrastructure. This request was outlined in a report released by the Association of Comms and Technology (ACTforSA) on August 20.

Titled "Promoting Equitable Participation and Sustainable Growth: Exploring Policy, Commercial, Competition, and Socio-Economic Perspectives in South Africa's Over-the-Top (OTT) and Telco Ecosystem," the document argues that tech companies benefit from existing networks without contributing to the associated costs.

"The success of OTT platforms depends on a robust network infrastructure, but they are not currently contributing enough to its upkeep" said Nomvuyiso Batyi, CEO of ACT. "We believe OTTs should contribute to network upgrades and development."

The ACT is pushing for a "fair share" model where over-the-top (OTT) platforms — such as video, audio, and messaging services — would help fund the construction, maintenance and upgrades of the networks they rely on.

According to Statista, the revenue in the OTT video market alone in Africa is forecasted to reach $3.90 billion in 2024, with a compound annual growth rate (CAGR) of 8.30% from 2024 to 2029, leading to a projected market volume of US$5.81bn by 2029. Despite this growth, these platforms currently do not contribute to network infrastructure costs.

As OTT services continue to expand rapidly, their reliance on existing networks intensifies, placing an increasing financial burden on telecom operators responsible of building and maintaining the infrastructure.

Hikmatu Bilali