Political parties have generally welcomed the Independent Communications Authority of SA's (ICASA's) draft interconnection regulations, which will hopefully result in the reduction of telecommunications costs. However, some parties do worry about the process.
Last week, the communications regulator published the final draft version of its interconnection regulations. The final steps will be public hearings prior to finalisation by the end of June, in order to meet the deadline imposed on ICASA by Parliament.
The proposed tariffs start with a reduction from the current 89c per minute, to 65c in July 2010, 50c in July 2011, and 40c in July 2012 for mobile interconnection; and starting with a reduction to 15c per minute in July 2010, 12c in July 2011, and 10c in July 2012 for fixed-line interconnection.
Ismail Vadi (ANC), chairman of the Parliamentary Portfolio Committee on Communications, says the draft regulations show ICASA can put itself to work when needed. Vadi has been highly critical of ICASA's lack of productivity in the past.
“These regulations are a positive step to ensuring our telecommunications costs drop for the benefit of all, especially the poor,” he notes.
Democratic Alliance (DA) deputy shadow communications minister Lindiwe Mazibuko says the proposed tariffs are significantly lower than those initially proposed and later implemented by the major mobile network operators. The proposed rates demonstrate the extent of the market failure that needs to be addressed by ICASA in this regard, she notes.
Mazibuko says the DA has long contended it is the responsibility of the independent regulator - not the minister of communications, or the fixed and mobile network operators themselves - to decide on a fair interconnection pricing regime for South African network subscribers.
“ICASA has a constitutional mandate to ensure this naturally monopolistic function, which connects users between fixed and mobile phone networks, is effectively regulated, and the DA welcomes ICASA's decision finally to act,” she adds.
Juli Killian (Cope) says the proposed reductions are a very positive step, but maintains her party's policy that it was “wrong” for communications minister Siphiwe Nyanda to intervene in what was a parliamentary process.
“The regulations are three years late and then the minister tried to hijack the process last year. All of this is just due to poor planning and capacity from both ICASA and the Department of Communications.”
Killian, however, is disappointed that ICASA had missed its self-imposed deadline of 18 March to publish geographic number probability regulations.
Independent Democrats (ID) leader Patricia de Lille, who kick-started Parliament's investigation into interconnection rates, declared her satisfaction with the outcome of the draft regulations.
De Lille's campaign saw her meet with the Competition Commission and ICASA, both of which were also given letters of complaint from her and the public. The Competition Commission is still investigating her complaint of possible collusion with regards to interconnection rates.
“This is also a victory for Parliament, which the ID successfully used, with the help of hundreds of concerned citizens, to rally support for our year-long campaign, which I launched in July last year and should result in us saving billions in telecommunications costs,” says De Lille.
The fact that interconnection rates will come down is proof that an “ordinary consumer” like her can take on the might of any companies, no matter how big, she comments.
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