The battle between the Independent Communications Authority of SA (ICASA) and mobile operators over inter-network fees has gone up a notch, with MTN launching legal action against the authority.
ICASA introduced lower mobile termination rates (MTRs) two weeks ago and these favour smaller networks, Cell C and Telkom Mobile. The move has not gone down well with one of SA's leading network operators, which has now launched to have the modified MTR process reviewed.
MTN SA CEO Zunaid Bulbulia says the operator is within its rights to initiate court proceedings as it is affected by the authority's actions. "MTN is of the view that the regulations do not meet these requirements and it has instituted legal proceedings against ICASA. MTN has asked the court to review what has happened and to set aside those parts of the regulations which it finds are irregular," he says.
Bulbulia says regulation such as lower MTRs is necessary "but only if due process is followed and it does not result in uncertainty and unnecessary interference with existing effective competition".
According to Bulbulia, the industry has a "common goal" to reduce costs and to promote fair competition, which he says is good for MTN's customers and its business.
"MTN believes the review proceedings which it has brought will ultimately assist ICASA and all the other role-players in realising that goal in a proper and commercially sustainable way," adds Bulbulia.
Bulbulia notes MTN's decision to take the legal route "should not, in any way, be construed as an attempt to keep the costs of telecommunications high".
MTN says lower MTRs "must be driven by a fair process and appropriate costing study ensuring MTRs are reflective of the costs incurred by all players in the market, including smaller players".
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