ICASA inquiry could force Netflix and other OTTs into South Africa’s regulatory fold

The Independent Communications Authority of South Africa (ICASA) has launched market inquiries into over‑the‑top (OTT) services including streaming and messaging platforms and into the affordability of telecommunications services, a move that could change how platforms such as Netflix operate in South Africa.

What the inquiry examines

ICASA’s enquiries focus on the impact of internet‑based platforms on the country’s telecommunications and broadcasting sectors. The regulator is examining how OTT services fit into South Africa’s regulatory framework and whether current rules remain appropriate as these services grow in influence.

Possible regulatory outcomes

Law firm Webber Wentzel said the OTT inquiry could result in platforms being brought within South Africa’s communications licensing framework. The firm noted draft policy proposals have considered this outcome for several years.

“For OTT service providers, the Inquiry raises the possibility of being brought within South Africa’s communications licensing framework, an outcome that draft policy proposals have contemplated for several years,” the firm said.

Webber Wentzel added that platforms offering voice, messaging, video streaming or other internet functionality often operate without local licences and, depending on the inquiry’s outcome, may face new compliance requirements.

Implications for content and broadcasting

The law firm warned the inquiry could affect content obligations, spectrum and numbering allocation, and regulatory contributions. It also said ICASA may consider whether streaming platforms should be subject to requirements similar to licensed broadcasters.

“Streaming platforms compete for audiences and advertising revenue, and the Inquiry may consider the extent to which they should be subject to requirements comparable to those applicable to licensed broadcasters, such as local content quotas, or must‑carry obligations. Any move towards greater regulatory parity could materially affect the competitive landscape.”

The article noted that, in South Africa, must‑carry obligations require certain pay‑TV broadcasters to carry specified public‑service channels.

Telcos and the “fair share” debate

Webber Wentzel said the inquiry could give telecommunications companies an opportunity to raise concerns about the regulatory treatment of OTT services compared with licensed providers. The relationship between OTT providers and the networks that deliver their services often called the “fair share” debate is likely to feature in submissions, the firm said.

The debate centres on whether major OTT platforms should contribute towards the cost of the telecommunications infrastructure used to deliver their services.

What could change for South African users

The firm suggested the inquiry could lead to new compliance requirements for platforms operating in South Africa. It also said the process may have significant competitive implications for broadcasting licensees as the rules governing streaming services evolve.

ICASA’s market inquiries mark a formal step in assessing how OTT services and telecommunications affordability interact with South Africa’s existing regulatory structures.