Building South Africa’s mobile networks

In a recent interview with CNBC Africa, Nomvuyiso Batyi, the CEO of the Association for Communications and Technology, shed light on the ongoing debate regarding whether digital companies should contribute financially towards the maintenance and expansion of South Africa's mobile networks. The issue at hand revolves around the fact that over-the-top (OTT) service providers, such as Google, Facebook, Spotify, and TikTok, are reaping the benefits of using the networks to deliver content to consumers without directly contributing to the infrastructure costs. This imbalance has sparked a call for regulatory intervention and a reevaluation of the relationship between these digital giants and local network operators. Batyi highlighted the need for a financing model that considers the impact of OTT services on the market and proposed a framework for commercial negotiations to ensure fair network funding. Despite efforts to engage with these companies, only Google showed willingness to discuss payment plans, leaving room for further dialogue and regulatory action. The conversation extends beyond South Africa and is poised to reach policymakers and regulators across the continent, signaling a potential shift in the digital landscape and economic dynamics of the telecommunications industry.