The Parliamentary Portfolio Committee on Communications believes clause five of the proposed interconnection agreement, tabled by mobile operators Vodacom, MTN and Cell C with the Independent Communications Authority of SA (ICASA), is wrong in terms of the law.
“At best, it represents an attempt by operators to pre-determine interconnection rates for a prolonged period, which is both unreasonable and legally indefensible,” says committee chairman Ismail Vadi (ANC).
He says the practical effect of the proposed agreement will be to tie ICASA's hands and prevent it from discharging its lawful responsibilities.
Juli Kilian, Congress of the People communications spokesperson, says: “We will back ICASA, but only if they stick to the roll-out, assuring me that they are still on track and that the regulations will be coming shortly and have already established a good idea of determining the real cost.
“The committee will support them as long as they do the right thing and do it by the book, but as long as they are effective.”
According to the multi-party resolution, the committee still believes its original proposal of an immediate reduction in the interconnection rates to 60c is desirable.
“However, it accepts the suggested cut to 89c as an interim measure that can be implemented by 1 March 2010 - of course, after endorsement by ICASA. There should be no conditions attached to this interim measure,” Vadi notes.
He says that, while the committee supports in principle the concept of a glide path, ICASA should determine the precise rates and timeframes.
The committee urged ICASA to undertake its investigation into interconnection rates professionally and to meticulously follow the procedures set out in Chapter 10 of the Electronic Communications Act, so that its final determination on this matter can be defended legally, if need be.
Vadi says the committee will invite ICASA immediately after the president's state of the nation address to receive a progress report on its work in respect of interconnection rates.
Meanwhile, in defiance of the regulator's decision not to allow planned interconnect rate cuts, the mobile operators will go ahead with their proposals to lower rates in March.
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