SA's Internet body, the Internet Service Providers' Association of SA (ISPA) has called for a quick resolution to the underway feud between mobile operators and the Independent Communications Authority of SA (ICASA) over new mobile fees.
This comes as Vodacom and MTN prepare to do legal battle against new mobile termination rates (MTRs), as laid out by the regulator at the end of January.
Termination rates are the fees operators pay to carry calls on each other's network.
ISPA says it supports ICASA's intention to "vigorously pursue the objective of more competitive markets without fear of the reactions of those whose interests will inevitably be Compromised".
ISPA acknowledges, however, that "there are different views on how to achieve greater competition".
ISPA regulatory advisor, Dominic cull, says: "With regards to the urgent interdicts sought by MTN and Vodacom - should they be granted - the implementation of the new glide path will be delayed at a politically inconvenient time and it will undoubtedly delay the creation of a more competitive landscape."
Cull says the consequences of the delay could be substantial, "a result which is not in the interests of the South African consumer or economy".
Given these considerations, ISPA has urged MTN and Vodacom to take "extraordinary measures to reach a negotiated solution outside of the court process".
Cull adds: "Whatever the outcome, the matter before the courts is important because it
is likely to redraw the rules of engagement between the regulator and the regulated and between the policy-maker and industry. This shake-up will be long overdue."
MTR implications
The publication of ICASA's new termination rate regime involves the introduction of a new glide path for the phased lowering of wholesale voice call termination rates, as well as aggressive asymmetrical pricing in MTRs.
ISPA says its members have "an interest in and support fair and transparent regulatory processes and the rights of affected parties to seek the review of this action where they hold a good faith view that the required standards have not been met."
While much has been written about the broader context and altruistic motivations for the court applications, says ISPA, this is at heart about rands and cents - "and both MTN and Vodacom are acting in a rational manner for profit-seeking entities that are taking into account narrow shareholder interests".
At the same time, says the industry body, the fact that the minister of communications and Parliament's communications committee have been vocally supportive of ICASA's intervention, reflects the "strong political and socio-economic considerations at play".
Call termination rates are at the core of ICASA's Cost to Communicate programme, and form an area of telecoms regulation understood by politicians, says ISPA.
"ICASA's intervention is more directly linked to the continued existence of what it regards as a mobile services duopoly and ICASA's position that introducing greater competition will lead to lower prices."
Cull says: "This follows from ICASA's assessment of market and revenue share between the mobile networks, its conclusion that there is market failure and its view that the 2010 glide path and asymmetry have not remedied the market failure sufficiently," says Cull.
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