The Unholy Union: OTT Services Sucking Lifeblood from Local Telcos
As the debate on fair share arrangements between local telcos and over-the-top (OTT) service providers reaches a fever pitch, ICASA chairperson Mothibi Ramusi has revealed plans to create a regulatory forum to encourage collaboration and investment in the sector. But will this move stifle innovation or bring much-needed clarity to the industry?
In an explosive interview, Ramusi spoke out against the OTT service model, which he believes is reliant on the availability of high-quality, reliable, and efficient network infrastructure provided by local telcos. He argued that OTT service providers are "sucking the lifeblood" from local operators, who are struggling to make ends meet.
"You can’t just come to my house and do things without engaging me properly," Ramusi said, using a car analogy to illustrate his point. "If we were to segment and say but you’re using somebody’s infrastructure… what is it that is going to that infrastructure? How fair is this process?"
The ICASA chairperson also expressed his concerns about the impact of OTT services on the sustainability of the telecoms sector. "As much as we support innovation, I’m of the view that anyone who provides or who uses somebody’s infrastructure ought to contribute," he said.
But some industry experts have warned that such discussions may scare away potential investments, stifling innovation and progress in the sector. Others have called for a fair share arrangement to be put in place to ensure the sustainability of local telcos.
In a recent statement, the Association of Comms and Technology (ACT) called for OTT service providers to be included in the licensing and policy regime, including the regulatory regime. "There should be a fair share arrangement in place for the sustainability of the telecoms sector," ACT said.
As the regulatory landscape continues to evolve, one thing is clear: the future of OTT services in South Africa is far from certain. Will the industry come together to find a solution, or will the controversy continue to simmer in the background? Only time will tell.
