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ICASA to review MTRs - paper

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 23 Mar 2014
ICASA has reportedly bowed to pressure from MTN and Vodacom in its move to change mobile termination rates.
ICASA has reportedly bowed to pressure from MTN and Vodacom in its move to change mobile termination rates.

The Independent Communications Authority of South Africa (ICASA) has bowed to pressure from MTN and Vodacom, and will review its order to cut mobile termination rates (MTRs), the Sunday Times reports.

Citing an initial Bloomberg report, the paper says ICASA decided to engage in a "reconsideration" of termination rates applicable to the year beginning 1 April 2015 and the same date in 2016.

This took place in a response on 12 March to objections by the country's two biggest operators.

According to the paper, ICASA said the review would take six months.

MTRs are the fees mobile operators pay each other to carry calls on their networks.

ICASA's new regime - which aims to bolster competition and reduce communication costs - is designed to ensure Vodacom and MTN pay smaller players Cell C and Telkom Mobile 44c, while the latter two will pay just 20c.

The current termination rate is 40c.

MTN and Vodacom filed an application with the South Gauteng High Court last month, asking it to have ICASA's proposed MTRs reviewed.

According to the paper, ICASA confirmed the content of a response affidavit in an e-mailed statement, adding the review was being done with the help of an external economist.

"The matter is going to court next week and all clarification will be made then," the regulator is quoted as saying.

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