The Independent Communications Authority of SA (ICASA) has decided the two-month hold it put on the implementation of the new termination rates, introduced at the end of January, is unnecessary, and has announced they will now only be delayed by a month.
This comes after the authority said last week it would delay the commencement of its 2014 Call Termination Regulations until May, pending the outcome of the legal action instituted by MTN on 12 February. ICASA wanted to allow itself and other respondents time to prepare and file answering papers to MTN's High Court interim order that suspended the bulk of mobile termination rate (MTR) provisions.
"After further consideration and consultation with legal counsel, ICASA's council has decided the commencement of the regulations need only be delayed by one month."
ICASA says it is in the public interest that MTN's application for interim relief be resolved as quickly as possible. "After studying the papers, the council is also of the view that a delay of one month is sufficient to ensure the affected parties have sufficient time to properly prepare their answering papers."
There are 31 respondents to MTN's High Court application.
To this end, ICASA says it published the Call Termination Amendment Regulations yesterday. The updated regulations delay the commencement of new termination rates by one month - from 1 March to 1 April - and extend the operation of the previous regulations (from 2010) by one month.
Fee divide
Termination rates are the fees operators pay each other to carry calls on their networks. According to ICASA's new regulations, MTRs will drop from the current 40c to 20c (which the smaller players will pay Vodacom and MTN to carry calls on their networks), while Cell C and Telkom Mobile will be able to charge their larger counterparts 44c per call terminated on their networks.
A three-year glide path will see MTRs reach 40c for Cell C and Telkom Mobile, and 10c for the two dominant players in 2016.
MTN's grounds for instituting legal action, according to MTN SA CEO Zunaid Bulbulia, are based on what the company sees as the lack of due process. "MTN believes the decline in 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.
"MTN is of the view that the regulations do not meet these requirements. MTN has asked the court to review what has happened and to set aside those parts of the regulations which it finds are irregular. This is a right which is afforded to all companies which are affected by the actions of administrators."
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