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Carrim, ICASA discuss MTR progress

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 23 Apr 2014
ICASA has just five months left to publish new, valid termination rate regulations.
ICASA has just five months left to publish new, valid termination rate regulations.

Communications minister Yunus Carrim has met with the Independent Communications Authority of SA's (ICASA's) council to, among other things, get feedback on the regulator's termination rate review.

This comes just under a month after ICASA's new termination rate regulations, favouring smaller mobile players, were deemed invalid by the South Gauteng High Court on account of the authority not having carried out the correct procedure.

The court gave ICASA six months to revise the mobile termination rate (MTR) structure it introduced at the end of January - to the legal objection of Vodacom and MTN - and to produce a new proposal, get mobile operators' buy-in and, finally, publish new regulations.

MTRs (interconnect fees) are the fees operators pay each other to carry calls on their networks. ICASA's proposed regulations, which have been given the go-ahead to remain in place until October, see Vodacom and MTN pay Cell C and Telkom Mobile MTRs of 44c, while their smaller rivals pay them 20c per call termination in return.

The Department of Communications (DOC) says Carrim met with ICASA's council today, to discuss progress on the broadband value chain analysis study, feedback on the MTR review, and the regulatory measures required for implementing the country's broadband policy, SA Connect.

Undefined support

The DOC says the main item discussed was ICASA's progress on the MTR cost study analysis and its plan to meet the six-month deadline of 30 September.

Carrim says the department received a report from ICASA on its progress, and is "reasonably satisfied". He says the regulator requested more resources from the DOC, which has "agreed in principle to give [ICASA] the appropriate support".

Carrim reiterated the DOC supports the regulator's work on lowering the cost to communicate - without interfering in its independence.

Despite a number of queries over the past two weeks, the DOC has not been forthcoming with details as to the extent or nature of support it will offer ICASA.

In light of the challenge that lies ahead for ICASA in having to produce fresh regulations in now just five months - and the regulator's poor resource pool - industry professionals have urged the DOC to step in.

Earlier this month, Heather Irvine, head of anti-trust and competition at Norton Rose Fulbright SA, said if the communications minister does not support the review process by allocating adequate resources to properly staff and fund the regulator and support its work, "it is unlikely ICASA will be able to produce regulation that is in line with the empowering legislation, procedurally fair, and achieves its intended purpose - namely enhanced competition in [the sector]."

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