The Independent Communications Authority of SA (ICASA) will today intervene in an ongoing dispute between fixed-line giant Telkom and mobile operator MTN, as the two have failed to reach an agreement regarding interconnect pricing.
Both companies have confirmed that they will appear before ICASA today to clarify the principle of “price taker” with respect to interconnection. The details of the dispute are unclear at this stage, as neither operator, nor ICASA, would divulge any specifics ahead of the hearing.
“MTN can confirm that the ICASA Complaints and Compliance Committee will hear a dispute between Telkom SA and MTN,” says Robert Madzonga, chief corporate services officer at MTN SA.
“This process forms part of the first stages to reaching a resolution to the dispute, which MTN is hopeful both parties will achieve. At this stage, MTN cannot comment further, as we await the outcome of the hearing,” he continues.
However, Telkom notes that the two parties have, in the meantime, agreed on an amicable interim agreement.
“Currently, the parties have agreed to continue to operate under an interim interconnection agreement, until the regulator brings clarity on the principles required to finalise the agreement,” says Telkom.
On 23 June 2010, ICASA received a notification of a dispute by Telkom against MTN. This dispute was lodged in terms of Section 37(4) of the Electronic Communications Act, which reads: In the case of unwillingness or inability of a licensee to negotiate or agree on the terms and conditions of interconnection, either party may notify the authority in writing and the authority may:
a) Impose the terms and conditions for interconnection consistent with this chapter;
b) Propose the terms and conditions consistent with this chapter which, subject to negotiations among parties, must be agreed to by the parties within such period as the authority may specify; or
c) Refer the dispute to the Complaints and Compliance Committee for resolution on an expedited basis in accordance with the procedures prescribed in terms of Section 38.
ICASA has decided to refer the dispute to the Complaints and Compliance Committee for hearing and adjudication.
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