Mobile newcomer 8ta has slammed Cell C for having a split-personality when it comes to the operator's position on asymmetrical interconnect rates.
The lashing came from 8ta's legal team this morning during a hearing hosted by the Complaints and Compliance Commission on behalf of the Independent Communications Authority of SA (ICASA).
The two mobile operators are caught in an interconnect standoff as 8ta proposes a rate of 93c per minute, while Cell C seeks a rate of 89c. 8ta is in similar disputes with MTN and Vodacom.
In the interim, Cell C and Telkom have installed an agreement favouring an 89c interconnect rate; however, the agreement is subject to ICASA's final ruling on the matter.
8ta argues that Cell C has consistently argued and appealed to ICASA for an asymmetrical rate, but now that 8ta has tabled the same argument against Cell C, the company has reversed its position.
Essentially what Cell C is saying, argued 8ta's legal team, is that when Cell C seeks to compete, it will move for the authority to implement an asymmetrical rate in its favour on the very basis that 8ta is arguing for.
Telkom previously justified its call for an asymmetrical rate, saying: “The terms proposed by Telkom include a reasonable mobile termination rate (MTR) that reflects Telkom's mobile network cost as a new entrant to the mobile market. Telkom needs a reasonable MTR in order to be able to compete in the South African mobile space and offer subscribers attractive retail rates.”
8ta's legal team cited numerous arguments in which Cell C argued for an asymmetrical rate, reiterating that the same arguments hold true for 8ta.
The newcomer argued that nine years of existence in the industry, coupled with a 10% market share, means Cell C has been defined as an established market player.
8ta's legal team is still presenting its arguments. Cell C is due to respond later today.
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