<\/p>\n
You can also listen to this podcast on iono.fm here.<\/p>\n
JEREMY MAGGS: The Independent Communications Authority of South Africa (Icasa) has launched a market inquiry into the growing influence of so-called over-the-top (OTT) services such as Netflix and WhatsApp.<\/p>\n
Now, as I understand it, the regulator wants to understand their impact on traditional broadcasters and telecommunications companies and whether the rules governing the sector still make sense.<\/p>\n
I think one issue that is likely to come under scrutiny is the controversial fair share argument that large digital platforms should contribute towards the cost of the networks they are using.<\/p>\n
Let me pull all of this together. The chair of Icasa is Mothibi Ramusi. Mothibi, welcome to you, what specific market failure then, is this inquiry trying to fix?<\/p>\n
MOTHIBI RAMUSI: Well, Jeremy, thank you very much for the opportunity. I think just going straight to the question that you\u2019ve asked. Currently, as you may know, we have licensees in the form of mobile network operators or even fixed providers.<\/p>\n
Now, noting that the sector that we regulate in the past 10 years, it has changed. We\u2019ve seen multiple other sectors crossing over into what one would have traditionally said it\u2019s just a mobile environment.<\/p>\n
So as an authority, we saw it fit that given the fact that there have been these changes within the sector, we need then to understand the new behaviour from a cost point of view, and even from me and you being subscribers in terms of the impact that might have.<\/p>\n
Because given now that you\u2019ve got companies that have actually built infrastructure, as you said initially, in terms of the fair pay, the issue around fair share relates around somebody having built a network and then availing a network to a third party.<\/p>\n
Listen: Pressure mounts on Icasa to change B-BBEE regulations<\/p>\n
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The big question that has always been asked is, is there no need for somebody who\u2019s going to use my infrastructure to actually then pay me, because I am providing services based on what a regulator like Icasa would have provided, whether in this instance it could have been spectrum, and because my network is designed to provide services based on certain speeds, traffic management.<\/p>\n
So as an OTT, obviously because you are now dealing with high data capacity, so in terms of consumption, one is likely to say that there\u2019s a need then to manage my environment.<\/p>\n
So as an authority, the inquiry then is basically to assess the impact on how the licensed operators explore whether the OTT should contribute to their network investment under a fair share model, like you\u2019ve indicated in your opening remarks.<\/p>\n
JEREMY MAGGS: How do you measure then whether these platforms are actually harming licensed South African operators right now?<\/p>\n
MOTHIBI RAMUSI: Well, Jeremy, this is one area that, \u00a0as I said, we are going to be determining through the inquiry. What I can say currently safely is to indicate that if one builds a network, you build it with an intention to maintain quality of service, quality of experience.<\/p>\n
Now, if, according to me, having built a network, I\u2019m of the view that adding any additional services on my network, it might have an impact.<\/p>\n
These are the things that, as an authority, we will definitely discourage, because we wouldn\u2019t want to see any new services that are being consumed on a network that has got its own licence obligations affecting you as a consumer.<\/p>\n
Because in the main, we need to make sure that we protect our consumers from any services that they consume.<\/p>\n
So because those that are providing infrastructure, they\u2019ve got licence conditions.<\/p>\n
OTTs, as we have seen it in many jurisdictions, they don\u2019t have a licence and given that fact, it becomes important as an authority to say that we need to have a fair regulatory framework, because for those that we can penalise for not providing good services, what about this new sector, which we now know as OTT?<\/p>\n
If they don\u2019t have a governance framework, it will, to any other person, look like it\u2019s an unfair regulatory environment.<\/p>\n
So to a large extent, look at this inquiry as Icasa trying to level the playing field, just to make sure that anyone who provides services, at least they work within defined rules of the game. We don\u2019t want to stifle innovation.<\/p>\n
We embrace new technologies that are introduced, but in the main is to make sure that affordability, access to you in a village, you don\u2019t have to find yourself being discouraged with any services that are being introduced.<\/p>\n
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JEREMY MAGGS: And to that point, though, you\u2019ll agree there is a fine line between disruption becoming a regulatory problem rather than normal competition.<\/p>\n
MOTHIBI RAMUSI: Yeah, it\u2019s a very good phenomenon. In terms of disruption, maybe one might say, technically we shouldn\u2019t define that as a disruption. I think one will look at it as an enhancement.<\/p>\n
It goes even for our regulatory framework to say we\u2019re coming from an era where our regulatory prescripts were designed to talk specifically to a sector \u2013 when you talk about vertical sectors.<\/p>\n
But now because in technology there\u2019s an enhancement, it requires even us as an authority to go back to the drawing board and say, how do we then enhance our document so that we can accommodate what appears to be an improved and innovated environment?<\/p>\n
So for me, the word disruption, it might just mislead, but I would look at it as an enhancement which requires us to review our own stance as well, and our posture.<\/p>\n
JEREMY MAGGS: To what extent is this academic? I ask that question because what jurisdiction does Icasa have over global companies, and I\u2019ve already referenced Netflix and WhatsApp, without a traditional South African broadcasting licence?<\/p>\n
MOTHIBI RAMUSI: Remember, let\u2019s not look at it and say what jurisdiction. I think it\u2019s more about the service that is being provided. We have our traditional broadcasters, as we know them, and obviously the type of service that you consume, it falls within, as a content, you\u2019re talking about broadcast.<\/p>\n
Now, one will have to look and appreciate that any means of consumption of a broadcasting service within the Broadcasting Act, Icasa, obviously, as you know, from a licensing point of view, we regulate that particular sector.<\/p>\n
So any multinational by definition of what you define as a service, that\u2019s what informs us then to engage.<\/p>\n
Hence, engaging on an inquiry, it\u2019s purely just to make sure that we guide, to a large extent, even those multinationals who might have defined their products, perhaps not as broadcasting, but obviously we are guided by the immediate prescripts that we have as an authority.<\/p>\n
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So it\u2019s purely then, Jeremy, to say we acknowledge that we\u2019ve got those that would want to come and invest. But take note that in our country, in our environment, we do have clearly defined parameters of services that need to be consumed.<\/p>\n
As a result, if you\u2019re coming in, let\u2019s then define the rules of the game.<\/p>\n
This is what we are now saying, let\u2019s engage South Africans to say, you\u2019ve been consuming the likes of Netflix and Amazon, but now knowing very well that you\u2019ve been talking about issues of cost to communicate, can we then hear from you? What are your pain points?<\/p>\n
Listen\/read: How Amazon gained the upper hand over Starlink in SA<\/p>\n
So that if there\u2019s an opportunity to revise our regulatory framework, we shouldn\u2019t find ourselves miscommunicating what we regulate.<\/p>\n
You may appreciate, the Department of Communications and Digital Technologies, they\u2019ve gone out on a draft white paper on the audio and audiovisual media services and online safety.<\/p>\n
Obviously, you might have seen that other areas that we may want to look into are issues around taxation.<\/p>\n
Because as and when you come in as a global streaming service, the question that we need to ask as well is to say, whilst all other South African companies are paying tax and are actually adhering to our local requirements, how then should we at the same time deal with the multinationals?<\/p>\n
This is where we are trying to bring parity and alignment to our local rules.<\/p>\n
So it\u2019s more like, as I said, levelling the playing field so that everyone who comes in knows how to participate and how to be onboarded in our regulatory environment in South Africa.<\/p>\n
JEREMY MAGGS: Mothibi Ramusi, thank you very much indeed. You\u2019re the chair of the Independent Communications Authority of South Africa.<\/p>\n
#Netflix #WhatsApp #face #closer #scrutiny #SAs #regulator<\/p>\n","protected":false},"excerpt":{"rendered":"
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