Vodacom and MTN Push for OTT Payments in South Africa

By Echos News Editorial Team
Published: June 29, 2026

Vodacom and MTN, backed by South Africa’s telecoms industry body ACT, are intensifying calls for Netflix, WhatsApp, and other OTT platforms to contribute financially to local network infrastructure.

Main Reporting

Vodacom and MTN, South Africa’s largest mobile operators, are pressing for global over-the-top (OTT) services such as Netflix, WhatsApp, and YouTube to pay towards the cost of maintaining and expanding local networks. The demand is being advanced through the Association of Communications and Technology (ACT), which represents Vodacom, MTN, Cell C, Liquid, Rain, and Telkom. The operators argue that OTT platforms generate massive traffic volumes while competing directly with regulated service providers, yet they do not share the same obligations or contribute to infrastructure upkeep.

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Industry Context

The push for a “Fair Share” or “Fair Contribution” model began in August 2024 and was reiterated in May 2025. By January 2026, ACT CEO Nomvuyiso Batyi stressed that OTT success depends on reliable networks built by operators. She warned that the rapid growth of connected devices and video-heavy apps is placing unprecedented strain on infrastructure, forcing operators into continuous upgrades. Batyi said ACT believes both operators and OTT providers share responsibility for delivering high-quality services and supporting a sustainable ecosystem.

South Africa’s mobile networks have invested billions in spectrum, fibre backhaul, and 4G and 5G rollouts. Yet data demand continues to surge, driven by streaming video, social media, and messaging apps. Operators argue that without shared responsibility, the financial burden could slow expansion and limit rural connectivity.

Developments

Vodacom has stated that most mobile data usage comes from services outside its own offerings, yet operators remain bound by expanding obligations. Cell C has taken a cautious stance, warning that mandatory contributions could raise costs, reduce innovation, or discourage investment. CEO Jorge Mendes emphasized that any value-sharing model must be evidence-based and developed through constructive engagement. Rain and Telkom have echoed concerns about sustainability, noting that infrastructure costs are rising faster than revenue growth.

The ACT is preparing a study to quantify OTT traffic impact and operator investments, aiming to provide data-driven evidence for regulators. This study is expected to highlight the scale of bandwidth consumed by video platforms compared to traditional telecom services.

Regulatory Debate

Updating the Electronic Communications Act (ECA) is seen as critical, as the current framework does not adequately address OTT realities. Batyi has called for proactive regulatory steps and greater collaboration across the ICT sector. The ACT insists that shared responsibility is essential to achieving South Africa’s digital ambitions, bridging the digital divide, and ensuring sustainable financing for future broadband networks.

Globally, similar debates are unfolding. In Europe, telecom operators have lobbied for OTT contributions, while regulators remain cautious about unintended consequences. In Asia, some countries have introduced levies or partnerships to balance costs. South Africa’s debate is part of a wider international trend questioning how digital ecosystems should be financed.

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Consumer Impact

Critics warn that forcing OTT platforms to pay could lead to higher subscription fees or reduced service availability. Consumers may face indirect costs if platforms pass on expenses. Advocates argue that without intervention, operators will struggle to maintain service quality, especially in underserved areas. The balance between affordability, innovation, and sustainability remains at the heart of the debate.

What Happens Next

The debate is expected to intensify as regulators consider whether OTT platforms should contribute financially. While operators argue for fairness and sustainability, critics caution against unintended consequences that could affect consumers and innovation. The ACT’s upcoming study will likely shape the next phase of discussions, providing evidence to inform policy decisions. For now, the issue remains unresolved, but the pressure on OTT platforms is mounting as South Africa seeks a balanced digital ecosystem.

Source: myBroadband | By: Myles Illidge

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