The big mobile network operators in South Africa “have never shown a willingness to … accommodate smaller players”, so the notion that they should be entitled to “Fair Share” is “difficult to swallow for smaller operators who have been at the end of their [unfair] business practices”.
That’s the view of Dominic Cull, a leading specialist South African ICT lawyer and regulatory adviser to the Internet Service Providers’ Association (Ispa), who was speaking to the TechCentral Show (TCS).
Cull’s criticism of Fair Share – at least in the form being advanced by the large telecoms operators – comes as the Association of Comms & Technology (ACT), a lobby group that represents the country’s six largest telecoms providers, agitates for its adoption by policymakers in South Africa.
Fair Share is an idea that has gained traction among operators in Europe, where margins have been pressured in a competitive market. They argue that so-called OTT – “over the top” – companies, which include streaming video providers such as Netflix, Disney+ and TikTok, should contribute a “fair share” to the development of broadband infrastructure.
Critics have said this is simply a move by infrastructure providers, which have experienced margin compression with the move from voice to data services, to try to claw back lost profits.
Speaking at last month’s Datacentrix Showcase 2024 event in Sandton, ICT industry stalwart Andile Ngcaba – who founded Convergence Partners – said the move by ACT to pressure policymakers and regulators over “Fair Share” is not needed or warranted in the South African context.
“If it ain’t broke, don’t fix it,” said Ngcaba, who is a previous policymaker in South Africa and who served as director-general of communications in the Nelson Mandela administration.
In the interview with TCS, Cull echoed this view and said ACT’s lobbying for Fair Share is partly aimed at “catching the ear” of newly appointed communications minister Solly Malatsi and influencing what is included in forthcoming amendments to legislation that governs the ICT sector in South Africa.
In this episode of TCS, Cull chats about:
- Whether ACT has a point about Fair Share;
- How big content players impact smaller operators and internet service providers, and why the call for Fair Share is coming from the industry’s biggest players;
- The investments by the OTT players in both terrestrial and subsea fibre infrastructure, including Google’s investment in the Equiano cable and Meta Platforms’ involvement in 2Africa; and
- Whether mobile network operators are doomed to become low-margin “dumb pipes” like other utility industries. Can they somehow avoid that fate?
Don’t miss the discussion, and also check out TechCentral’s December 2023 interview with Dominic Cull on the topic of Starlink in South Africa.
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