On average, South Africans spend over ten hours a day on screens, much of it on data-heavy apps like Instagram, TikTok, Netflix, YouTube, WhatsApp and Facebook.
By Nomvuyiso Batyi, ex-officio member of the Association of Comms and Technology
Every video stream and voice transmission are dependent on a robust digital infrastructure planned, deployed, and maintained through significant capital investment and ongoing operational costs by local mobile network operators. This foundational layer is critical to enabling digital inclusion, economic growth, and national connectivity goals.
Yet, as of 2025, global tech giants like TikTok, Meta, Google and Netflix pay zero towards the infrastructure they rely on to deliver their services in South Africa.
In 2023, Over-the-Top (OTT) platforms accounted for more than 70% of mobile data traffic in South Africa. Services like WhatsApp, Netflix, YouTube, Facebook and TikTok have become deeply integrated into the daily lives of South Africans, driving demand for constant connectivity and placing growing pressure on mobile network infrastructure.
However, the platforms responsible for this surge in data consumption do not pay towards the upkeep, expansion or maintenance of the digital infrastructure that supports them.
Mobile network operators (MNOs) such as Vodacom, MTN, Telkom and Cell C are licensed entities that operate under strict regulatory compliance in South Africa. They pay licence fees, taxes and are required to invest in infrastructure, often in areas where the return on investment is not immediate or guaranteed. They are also expected to participate in national development goals, including rural connectivity, empowerment and localisation. Yet the very platforms that generate the highest volumes of data usage operate outside this framework, avoiding both regulation and financial contribution.
This dynamic has created a lopsided ecosystem where OTTs profit handsomely from advertising and subscriptions, while local infrastructure providers bear the full cost of network development. The result is an unsustainable market where local players carry the burden while global platforms remain unaccountable.
As remote work became more entrenched and streaming services became mainstream, the strain on mobile and broadband networks increased. In response, operators had to boost capacity, expand fibre networks, and roll out 5G technology to keep up with the growing demand. Over-the-Top platforms have become some of the biggest beneficiaries of these advancements, while providing no infrastructure investment.
South Africa currently lacks a fit-for-purpose regulatory framework that governs OTTs in relation to infrastructure use. This gap has created a blind spot in policy that undermines the principles of fairness and sustainability in the digital economy. Other countries are already addressing this issue.
In South Korea, for instance, legislation is being debated that requires large content providers to pay for the network traffic they generate. While the European Union has reignited discussions around a “fair share” contribution from big tech companies, acknowledging the imbalance between infrastructure providers and content platforms.
South Africa cannot afford to be left behind as the same challenges faced by other nations are playing out locally. If no intervention is taken, the country risks falling into a cycle where local infrastructure investments erode while platforms that rely on it grow stronger.
The reality is that poor infrastructure limits access to digital education, remote work and e-commerce opportunities, especially in underdeveloped areas. It widens the digital divide and stifles local innovation, and without regulatory intervention, the cost of enabling the digital economy will remain unfairly skewed.
The Association of Comms and Technology (ACT) is not calling for over-regulation or restriction of innovation. The association fully supports the growth of digital platforms and recognises their role in transforming how people live and work.
What ACT seeks is a regulatory solution that ensures all players who benefit from digital infrastructure also share in the responsibility of sustaining it.
A sustainable and fair digital economy requires shared accountability. ACT believes a tiered model could be introduced, where the largest data consumers among OTTs contribute proportionally to their usage. Alternatively, a national contribution fund could be established, where a percentage of local revenue from OTT platforms is invested into infrastructure development.
Co-investment schemes could also be explored, encouraging partnerships between tech companies and MNOs to build and maintain digital infrastructure.
None of these models are intended to limit growth. Rather, they are designed to protect the long-term health of the ecosystem. If OTTs benefit from the infrastructure without contributing to its development, the pressure on local networks will only grow. This could lead operators to cut back on investment, resulting in a decline in service quality.
Consequently, South Africa risks falling behind in the global digital race.
ACT urges policymakers, regulators, and industry players to come together and build a regulatory framework that addresses this imbalance.
As South Africa charts its path through the Fourth Industrial Revolution, digital infrastructure must be protected, strengthened and future proofed. That is not possible if the weight of that responsibility continues to fall on just one side.
ACT remains committed to fairness, sustainability and responsible innovation. The association invites collaboration and open dialogue to create a model that supports both innovation and infrastructure resilience. A thriving digital economy must be built on shared value. Now is the time to put policy into action.