South African telecoms operators have been granted a small reprieve for their submissions to the regulator on the draft termination rate regulations.
The Independent Communications Authority of SA (ICASA) will now allow operators to submit their comments by 18 June, barely two weeks before the first expected rate cut dictated by the document.
The regulator startled the industry last month, slashing mobile interconnect rates in a glide path to 40c a minute by 2012, with the first part of the path expected at the beginning of July, dropping the rate to 65c.
“ICASA has received requests for an extension of time in providing written submissions to the draft call termination regulations. The authority has reviewed these requests and, in the interests of ensuring a fair and transparent public consultation process, has agreed to extend the date,” ICASA explained in a statement.
Public hearings on the process will now be held from 29 June to 30 June, meaning it is likely the actual date for the first rate cut will be pushed back. The initial hearings were set for 9 June to 11 June.
Earlier this year, all three mobile operators dropped termination rates from R1.25 to 89c (peak times), and were surprised by ICASA's decision to slap another rate cut into the mix. However, despite the delay, analysts say the new rate is unlikely to be significantly contested, because the rate cut process has become something of a reputational issue for the operators.
ICASA's new regulations also include fixed-line rate cuts, dropping from 15c in July, to 10c by 2012.
The regulator says it will be watching the price movements in the market, and has called on all the operators to ensure rate cuts are 100% passed on to the consumer.
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