South Africa’s operators should be paid by streaming giants to carry their content, an industry expert argues.
telecommunications operators should be paid by streaming entertainment giants to carry their programming to the telcos’ broadband subscribers.
Companies like Netflix benefit “enormously from better connectivity, and yet, unlike consumers and businesses, these LTGs do not contribute proportionately to sustainability, despite fully relying on it for the delivery of their services”. It is “only fair” that they contribute to “ensure a sustainable, equitable investment in infrastructure”.in favour of a Fair Share-type initiative in South Africa.
Content providers, Potgieter said, have been hugely successful in leveraging copyright into profitable business models online. As a result, the “value add” has gone to them and not the access providers, which haven’t been able to monetise their networks beyond selling basic access. In effect, they have become “dumb pipes”.
This is particularly keenly felt in smaller markets like Mauritius, which implements data caps – they are quite generous – on its fibre services.
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