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ICASA pauses on interconnect cuts

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 17 Feb 2014
MTN wants parts of the interconnect regulations set aside for being irregular, says MTN SA CEO Zunaid Bulbulia.
MTN wants parts of the interconnect regulations set aside for being irregular, says MTN SA CEO Zunaid Bulbulia.

The Independent Communications Authority of SA (ICASA) says it will postpone mobile termination rate cuts until after an urgent High Court application is heard.

This comes after MTN last week confirmed it had launched legal action against the regulator over the proposed lower rates. ICASA has proposed delaying implementation until May.

ICASA introduced lower mobile termination rates (MTRs) two weeks ago, favouring smaller networks, Cell C and Telkom Mobile. MTN wants implementation of these changes suspended until a final review can be done.

MTN SA CEO Zunaid Bulbulia said 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 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".

ICASA says it is in the public interest for the urgent application to be heard and decided on a less urgent basis. "The High Court's decision will have wide-ranging effects on the parties and the public at large, including subscribers for telecommunications services."

The regulator notes MTN's application is "complex, comprising some 399 pages". Answering affidavits are required to be filed by 18 February, while the application is set to be heard on 25 February.

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