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More bark than bite

The MTR saga is just another instance that makes ICASA look like a toothless watchdog.

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 02 Apr 2014

It has been a rollercoaster two months for SA's telecoms watchdog, which has come out of the termination rate brawl looking more Chihuahua than Rottweiler.

In January, the Independent Communications Authority of SA (ICASA) took a specific and resolute decision to bring down the cost of communications in SA - only to have it opposed, challenged, postponed, brought forward again, dissected in court, reconsidered and, finally, declared unlawful and invalid.

As it stands, the authority - to use the title loosely - has six months to review the stern stance it took on industry monopolisation (20 years down the line), and come up with a more placating plan for our two dominant networks.

This, after ICASA came out all guns blazing last year, toting promises of reform, restitution and results (at all costs) for those who have been hit hardest by some of the world's most expensive call rates - SA's consumers.

No good deed

ICASA's resolute decision, which some might argue too harsh and others too little too late, was presumably taken with the best intentions in mind - but then, the road to hell is paved with those.

As it turns out, Vodacom and MTN don't like the notion of having to pay their smaller counterparts more than double what they get in return to carry calls on their networks for the next three years. And who can blame them? It's not charity that makes the business world go 'round.

On the other hand, as ICASA has sluggishly come to realise, there has to be some kind of regulation that stops consumers from being ripped off - especially when the majority of them are below the breadline - and have the same human right as those above them, to communicate.

Either way, the gavel has spoken and ICASA's regulations that force the red and yellow owners of over 80% of the market to pay the later entrants higher rates are in place, "finish and klaar". For now.

It's only a partial win for Vodacom and MTN, which would much rather have seen the status quo upheld for as long as possible, and really a bit of an awkward situation for ICASA. The watchdog has spoken, put its foot down - and had to partially retract it.

So in six months' time, ICASA will produce a fresh set of termination rates, derived using methodology prescribed by law, but what these will entail and where they leave the consumer, is anyone's guess. If I may hazard one, I would say probably in a better off position than a decade ago - but still not an ideal one.

The watchdog has spoken, put its foot down - and had to partially retract it.

There is nothing forcing Vodacom, MTN, Cell C or Telkom Mobile to take the 20c they are saving - and in the latter two cases, the 24c extra they are getting - and pass the benefit on to South African mobile users.

You have to commend ICASA for trying, but there is something glaringly amiss about a situation in which entities representing the very industry it is supposed to control seem to have more might than it does.

More muscle

ICASA was instituted by government in its current form in 2000 to provide regulation and control of telecoms issues in the public interest. In earlier days, the body's shortcomings were put down to inexperience, but that excuse no longer holds any water.

For years now the excuse has been a lack of resources - not only in the skills department, but financially speaking as well. And until the regulator gets its act together and improves its fee collection mechanisms, National Treasury will not keep forking out money.

But, without sufficient expertise, the almost R200 million ICASA is owed in licence fees is unlikely to come flowing in.

The Department of Communications, which ICASA falls under, washes its hands of the body - saying it cannot interfere in it carrying out its mandate. That would make sense if it was effective in carrying out its mandate, but industry is still waiting for the body to take its rightful - or intended - place.

In other African countries we've seen regulators exercise their influence and actually prohibit operators that do not live up to acceptable standards from acquiring subscribers.

Perhaps SA's would do well to take a page out of its African counterparts' books - but it would probably just end up in court, ICASA walking out with its tail between its legs.

It is going to take a whole lot more bite than bark if our country's telecoms industry is ever going to live up to international standards.

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