Cell C is challenging the Independent Communications Authority of SA (ICASA) over its definition and interpretation of under-serviced areas (USA).
SA`s smallest mobile company has submitted a legal opinion, which disputes ICASA`s interpretation, providing an alternative definition for USAs. The definition of a USA has long been under dispute, with Cell C at the heart of the debate.
Cell C has a lot riding on the definition being revised, since - as the smallest operator - it derives most savings and revenue from the roll-out of services in those areas. In March this year, the regulator effectively clipped the company`s wings by limiting the scope of USAs.
The company`s current legal missive challenges that definition and the regulator`s decision in March. It has also lambasted the regulator, saying: "We believe that in light of the new licensing regime, the ICASA process has become entirely academic."
As part of licensing terms, all the mobile operators are required to roll out a specific number of community service telephones (CSTs) to under-serviced areas. Cell C rolled out more than double the required number and, until March, had 100 000 CSTs in operation.
The mass roll-out sparked a war between Cell C and MTN, with the crux of the problem concerning lower interconnect fees.
Under interconnection agreements between the incumbents, MTN must charge a lower interconnect fee, at R0.06 per minute, for CSTs. The commercial interconnect fee is R1.25 per minute.
Cell C charges users 90c per minute on the low-cost phones and MTN claims it carries the entire cost of termination on its network from Cell C`s CSTs. MTN and Cell C battled the issue out with ICASA, since MTN believes that Cell C has roll-out in areas that cannot be considered under-serviced.
Cell C`s challenge follows a ruling by the regulator in March this year, over MTN`s claims, which forced Cell C to roll-back some of its CST installations.
The company feels that ICASA`s ruling failed to take into account whether Cell C had complied with the original definition. "Cell C maintains that its CST roll-out complied with its previous mobile CTS licence," says Nadia Bulbulia, Cell C`s executive head of regulatory affairs.
The regulator was not available for comment at the time of publication.
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