Communications minister Yunus Carrim has lauded the Independent Communications Authority of SA (ICASA) on the strong stand it has taken to the end of bringing down the cost of mobile communication in the country.
Speaking at today's Parliamentary Portfolio Committee on Communications (PPCC) hearings during which ICASA presented its plan to reduce SA's historically high call costs, Carrim said the regulator had done the right thing for the country as a whole by reducing mobile termination rates (MTRs).
"The cost to communicate is not a matter between the Department of Communications (DOC), the regulator and the operators. It is a matter for the country, for the economy and for the people as a whole. We want to make it clear that we support what ICASA has done. We believe it serves the country's interests."
That said, Carrim added that government would like to see the new MTRs (the fees operators pay each other to carry calls on their networks) contribute to consumers and businesses in SA paying less to communicate and benefitting from economic growth and job creation.
Serving SA
"The high cost of communication, as we know very well, has deterred foreign investment and also local domestic investment in the country. Our view is that these rates contribute to greater competition and we expect this to lead over time to a reduction in cost to communicate," said Carrim.
Regarding the operators that stand to be affected most by the new mobile rates, Carrim said ICASA consulted with the parties concerned "and we did plead with them to accept the outcome of the regulations".
He conceded that certain operators - notably Vodacom and MTN - will lose out in the immediate term, but said they stood to gain in the short and longer term. "If the economy grows, if jobs are created, their customers will use more of their services."
ICASA's drastic reduction of MTRs and asymmetry favouring Cell C and Telkom Mobile, added Carrim, does not only serve the poor and disadvantaged. "And it is not a magnanimous gesture on the part of the operators to accept this. They are going to serve the economy and the private sector no less, [as well as] small businesses. So we welcome this and we think it fits in exactly with the SA Connect broadband policy strategy and plan. We cannot prescribe to ICASA, but our view is that what they have done is in the country's interest.
"Saying that, we are also aware of the operators' needs to secure a reasonable rate of return for the sake of reinvestment and their shareholders." Carrim alluded to an article he had read that reported on the huge profits made by leading operators, saying the new MTRs would not be the end of them.
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