Vodacom and MTN want Netflix, YouTube to pay network fees

Oli otya,

Victoria from Techpoint here,

Here’s what I’ve got for you today:

Vodacom and MTN want Netflix, YouTube to pay network fees
Kuda sued for gender discrimination
Nigeria sues Binance for $81.5B

Vodacom and MTN want Netflix, YouTube to pay network fees

South Africa’s telcos want big streaming platforms like Netflix and YouTube to start chipping in for network costs.

The Association for Communications and Technology (ACT) is pushing for a “Fair Share” model that would make these over-the-top (OTT) services help fund network upgrades and maintenance, arguing that they benefit the most from existing telecom infrastructure.

Per MyBroadband, MTN and Vodacom are backing the idea, saying that while OTT platforms invest in undersea cables, the heavy lifting of building and maintaining local networks falls on telecom operators. Vodacom highlighted that demand for data is skyrocketing because of streaming services, and despite telcos investing heavily, they can’t keep up with the pace at a sustainable rate.

One major concern is rural connectivity. Vodacom pointed out that network operators already contribute to digital inclusion through social obligations, license fees, and taxes. But since streaming platforms are the main drivers of internet traffic, it’s only fair they also help fund network expansion to underserved areas.

The ACT argues that OTT platforms generate revenue by using telecom networks, so they should contribute their fair share. They believe this will create a better balance in the industry and prevent telcos from bearing all the costs alone. A new regulatory framework is being proposed to ensure both large and small network operators benefit.

If OTT services don’t help fund network development, the ACT warns that telcos may become less willing to invest in better infrastructure. Fair contributions from streaming giants could encourage more investment, leading to improved connectivity and better service for users.

The ACT’s goal is a system that is fair, flexible, and non-disruptive, ensuring quality services for South Africans. To make this work, there needs to be clear regulations, close collaboration between industry players, and a balanced approach that promotes fair competition and sustainable growth.

Kuda sued for gender discrimination

A former exec at Kuda, Rosemary Hewat, is suing the company for gender discrimination and wrongful termination. She claims the work environment was toxic, female employees were sidelined, and she was fired after speaking up about it.

She says Kuda talks a big game about gender inclusivity, but behind the scenes, it was a different story. Apparently, at a strategy retreat in December 2023, CEO Babatunde Ogundeyi made some not-so-great comments about female employees’ backgrounds.

The lawsuit also points to stock option issues. Hewat says she got offered stock at a higher Series B valuation, while a male colleague in a similar role got a better deal at the Series A price. When she brought it up, Ogundeyi allegedly brushed it off, saying the guy’s role was “more important.”

After that, she says things got worse. She was cut out of meetings, had her responsibilities reassigned, and then, boom — fired in February 2024. What’s wild is that Kuda’s Chief Technical Officer, Mutairu Mustapha, reportedly admitted her termination was a “mistake” and even suggested she come back.

As for Kuda, they’ve acknowledged the lawsuit but aren’t saying much, sticking to the usual “we don’t comment on these matters” response. And Ogundeyi? Radio silence so far.

Guess we’ll see how this one plays out, but it definitely puts a spotlight on workplace culture and gender equality in Nigeria’s fintech space.

Nigeria sues Binance for $81.5B

Nigeria is taking Binance to court, demanding a massive $81.5 billion — $79.5 billion for alleged economic damages and another $2 billion in back taxes from 2022 and 2023. That’s wild, considering it’s actually more than Binance’s entire valuation by about $20 billion.

According to Reuters, the Federal Inland Revenue Service (FIRS) filed the lawsuit at the Federal High Court in Abuja, accusing Binance of running without proper registration and dodging Nigerian tax laws. They claim Binance’s operations caused huge economic losses and that the company has been avoiding its tax obligations.

Binance has previously said it’s open to working with Nigerian authorities on tax issues, but they haven’t responded to this particular lawsuit yet.

FIRS argues that Binance never registered for tax compliance, which led to big financial losses for Nigeria. The Central Bank of Nigeria (CBN) even ran an assessment in May 2024 and estimated that Binance’s activities resulted in about $79.5 billion in damages — just within six months!

Jimada Mohammed Yusuf, part of the National Security Adviser’s Special Investigation Team, stated in an affidavit that Binance and its execs are directly responsible for these economic losses. He also mentioned that FIRS had already sent Binance a tax bill, but the company allegedly ignored it, leading to this lawsuit.

The lawsuit claims Binance was operating under the radar despite having a major presence in Nigeria. It accuses them of breaking multiple laws, including Nigeria’s tax regulations and the CBN’s rules on mobile money services.

This isn’t Binance’s first run-in with Nigerian authorities. In 2024, two of its executives were detained during a government crackdown on crypto. Binance is already fighting tax evasion charges and is also facing separate money laundering accusations, though it denies them.

As this case unfolds, it could seriously impact how crypto platforms operate in Nigeria and might even reshape how the country regulates digital assets moving forward.

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YC is offering summer grants this year to support undergraduate computer science and engineering students. Apply here.
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Selar is giving out 5 million naira in tuition support to 50 final-year Nigerian students through the Selar Tuition Fund. Apply here.
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