Vodacom has added fuel to the fire in what has become a legal tussle over the new inter-network mobile rates, introduced last month by the Independent Communications Authority of SA (ICASA), by filing an application with the South Gauteng High Court.
This comes two weeks after rival operator MTN filed a legal application with the same court, asking it to review ICASA's new mobile termination rate (MTR) regulations and set aside those parts of the regulations which it finds are irregular.
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 thee-year glide path will see MTRs reach 40c for Cell C and Telkom Mobile, and 10c for the two dominant players in 2016.
With the new rate regime set to take effect as of March, ICASA put it on hold for two months around mid-February for the legal case - to which there are 31 respondents - to be concluded. However, a few days later the regulator said one month would be sufficient and reduced the hold period to one month, meaning the new rates should come in from the beginning of April.
Vodacom said in a statement that although it supports lower mobile termination rates, "the issue at hand is not whether these rates come down; it's about ensuring that the legislated fair and objective process is used to determine the final rates".
The company said ICASA had not followed this process and its customers would be unfairly prejudiced as a result.
"We would have far preferred to have settled this in direct discussion with the regulator, but given the inadequate consultation, we have been left with no choice but to approach the courts."
Despite the legal action, Vodacom says it still stands by its previous proposal to ICASA that an interim cut be implemented immediately. "This will ensure that rates continue to come down and at the same time provide breathing room to follow the correct, legislated process to determine the final rates."
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