The Independent Communications Authority of South Africa (ICASA) has withdrawn its notice of inquiry into over-the-top (OTT) services such as Netflix, WhatsApp and YouTube, postponing any regulatory action for now.
ICASA launched the inquiry in early September after outlining it in its Annual Performance Plan for the 2026/27 financial year. The inquiry was meant to examine how OTT services affect licence-holders in the telecommunications, broadcasting and postal sectors.
OTT services are media services that stream content to internet-connected devices and platforms. The regulator listed Netflix, Disney+, WhatsApp, Amazon Prime and YouTube as examples.
One of the issues under review is the so-called Fair Share proposal, which would require high-traffic OTT platforms to contribute to the cost of building and maintaining broadband infrastructure used by traditional network operators.
ICASA said the withdrawal “will allow ICASA to address administrative and procedural matters for better regulatory alignment”. It added that the inquiry is still on the agenda and will be relaunched “at a later date” with a new notice that will give stakeholders clearer guidance on public participation.
What the delay means for businesses
For OTT providers, the pause means no immediate compliance costs or reporting obligations while the regulator finalises its approach. For telecoms, broadcasters and postal operators, the delay keeps the Fair Share debate in limbo, meaning any potential revenue from OTT contributions remains uncertain.
Stakeholders who have already submitted comments will be able to resubmit or add further evidence when the new notices are published, according to ICASA.
ICASA apologised for any inconvenience caused by the withdrawal and said it will communicate the new notices through its usual channels.
Read the full announcement on BusinessTech and see more on Regulatory policy.
ICASA first disclosed its intention to run a market inquiry into OTT services in the Annual Performance Plan for the 2026/27 financial year, signalling that the regulator intended to assess the sector’s impact on licence-holders across telecommunications, broadcasting and postal services. The plan outlined that a discussion paper would follow the inquiry, summarising findings and potentially shaping policy responses. By embedding the inquiry in its performance framework, ICASA aimed to align the investigation with broader regulatory objectives and to provide a structured timeline for stakeholder engagement and subsequent reporting.
The regulator highlighted that OTT platforms such as Netflix and WhatsApp have disrupted traditional broadcasting by offering on-demand content that competes directly with regulated linear broadcasters for audience share and advertising revenue. This competition extends to revenue streams, as foreign-based services attract subscription fees that would otherwise flow to domestic broadcasters. The shift has prompted concerns about market fairness and the sustainability of legacy broadcasters, prompting ICASA to examine how unregulated OTT services influence the overall media ecosystem.
Fair Share, the proposal at the centre of the debate, would require high-traffic OTT platforms to contribute financially to the construction and ongoing maintenance of broadband infrastructure owned by traditional telecommunications operators. The idea is that platforms benefiting from extensive data consumption should help offset the costs of network expansion, ensuring that the financial burden of broadband rollout does not fall solely on incumbent operators. This mechanism is intended to create a more level playing field between domestic network owners and global OTT providers.
When ICASA withdrew the original notices last week, it indicated that the move was intended to resolve administrative and procedural issues before proceeding. A new notice is slated to be published, promising greater context and clearer guidance for public participation. This refreshed notice will set out the scope of the inquiry, outline submission requirements and define timelines, thereby improving the regulatory alignment that the authority seeks to achieve before the investigation resumes.
Stakeholders who previously submitted comments will be given the chance to resubmit or further substantiate their input once the revised notices are released, ensuring that all relevant evidence can be considered. ICASA affirmed that it will disseminate the new notices through its usual communication channels, guaranteeing that participants receive adequate notice and an opportunity to engage fully in the forthcoming inquiry process.
The eventual output of the inquiry will be a discussion paper that captures the market analysis and stakeholder feedback, and it may incorporate a formal response to the Fair Share proposal. By compiling this paper, ICASA intends to provide a comprehensive overview of how OTT services affect the telecommunications, broadcasting and postal sectors, and to inform any future regulatory measures that could emerge from the findings.
