Streaming platforms in South Africa, including Netflix, may face new regulatory requirements as the Independent Communications Authority of South Africa (ICASA) examines the impact of OTT services on the country's telecommunications and broadcasting sectors.
The law firm Webber Wentzel notes that the communications regulator is looking at how OTT services fit into the country's existing legal framework, which could lead to significant changes for the platforms.
Previously, IOL reported that South Africans might see changes in how they access or pay for popular services like Netflix and WhatsApp due to the growing influence of internet platforms on the telecommunications and broadcasting industries.
ICASA has initiated market investigations into OTT services covering streaming and messenger platforms, and is also exploring issues of telecommunications service accessibility.
New Compliance Requirements
According to the law firm, this investigation may require these services to be included in South Africa's communications licensing system, leading to new compliance obligations for platforms operating in the country.
The firm emphasized that OTT service providers run the risk of falling under the scope of South African communications licensing—a scenario discussed in policy drafts over several years.
Platforms providing voice, messenger, video streaming, or other services over the internet often operate without local licenses and, depending on the investigation's outcome, may face new regulatory compliance demands.
Furthermore, the investigation could have implications for content obligations, spectrum allocation, and numbering, as well as regulatory fees.
Impact on Broadcasters
Webber Wentzel believes that the investigation could significantly affect the competitive environment for broadcasting licensees. Streaming services compete with traditional broadcasters for audience and advertising revenue, and ICASA may consider applying requirements similar to those imposed on licensed broadcasters to them.
These requirements could include local content quotas and must-carry obligations for foreign streaming platforms such as Netflix, Disney+, and Prime Video.
The firm noted that the potential consequences for broadcasting licensees are equally significant. As streaming platforms vie for viewers and advertising income, the investigation may determine the extent of their subordination to requirements comparable to those applied to licensed broadcasters, such as local content quotas or must-carry obligations.
Any move toward greater regulatory parity could substantially alter the competitive landscape.
In South Africa, must-carry obligations require certain paid television broadcasters to carry designated public service channels.
Telecommunication Companies and the 'Fair Share' Debate
The investigation will also provide telecommunication companies an opportunity to express concerns regarding the regulatory approach to OTT services compared to licensed providers.
Webber Wentzel predicts that the submitted documents will feature the topic of the relationship between OTT providers and the networks through which their services are transmitted, often referred to as the 'fair share' debate.
This discussion centers on whether large OTT platforms should contribute to covering the costs of the telecommunications infrastructure used to deliver their services.
