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SA Communications Authority opens inquiry into Netflix, WhatsApp services

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South Africa’s (SA) communications regulator has launched an inquiry into digital services such as Netflix and WhatsApp amid concerns about affordability, infrastructure costs and effects on traditional broadcasters.

 

The Independent Communications Authority of SA (ICASA) inquiry covers two connected issues: competition between traditional broadcasters and streaming platforms, and the cost of internet connectivity.

 

Technology Analyst and Reframed Editor Brendon Peterson said telecommunications companies had argued that digital platforms generated substantial traffic without carrying the same infrastructure costs or regulatory responsibilities.

 

SA telecommunications companies finance and maintain networks used to deliver streaming, messaging and other digital services. Customers already pay mobile data or fixed internet charges for access.

 

Peterson said new charges for over-the-top (OTT) platforms could eventually increase consumer costs if companies passed additional expenses to subscribers. “If the regulations come out that these OTT services have to now pay for maintenance, then there is a possibility that they could end up recouping those costs from us as the consumer,” Peterson said.

 

Such an arrangement could result in telecommunications companies receiving payments from customers and digital platforms for traffic carried over the same networks.

 

ICASA’s ability to regulate international companies will form another part of the discussion. Global businesses operating in SA must comply with national laws, but Peterson said stricter requirements could discourage some companies from remaining in the market.

 

Peterson cited regulatory debates involving satellite internet services as an example of the challenges global technology companies face when entering national markets.

 

The inquiry will also examine how changing viewing habits affect established broadcasters. Streaming platforms, YouTube, TikTok and other online services have changed how audiences consume television, video and other media.

 

Peterson said regulation should not punish technological change. Traditional broadcasters could instead adapt services and distribution methods to changing audience preferences. “The question becomes what happens to the incumbents who’ve been around so long,” Peterson said.

 

Consumers will not face immediate changes because the inquiry remains at an early stage. “For now, nothing changes. For now, everything stays the same,” Peterson said.

–ChannelAfrica–