Mobile operator Cell C says it still reviewing and calculating the effect of the draft call termination regulations on its business.
This comes after the Independent Communications Authority of SA (ICASA) yesterday called on all stakeholders to actively participate in the consultation process on the draft call termination rates, with the view of further reducing the cost to communicate in the country.
In a statement, Cell C says while it is pleased that the regulator has determined that the voice call termination market is still not competitive and requires remedies that include the imposition of asymmetry for smaller operators, it believes the modelling exercise done by ICASA can and should provide for increased asymmetry than is currently proposed in the draft regulations in order to address this historic and continuing imbalance that favours dominant operators.
"Cell C encourages ICASA to make bold decisions in this important matter by determining a wider asymmetry than that currently proposed in the draft regulations," says Cell C CEO Jose Dos Santos.
Asymmetric regulation definitely assists smaller operators and ultimately results in a reduction in retail prices when the competitive position of these smaller operators is enhanced, says the statement.
The operator says: "Despite their ongoing protestations, asymmetry has little to no effect on dominant operators, due mainly to the fact that only a tiny proportion of their overall voice traffic is actually affected by this asymmetric rate. In this context, there is no harm and only a benefit in providing a regulatory framework with as much asymmetry as possible.
"Anything less will continue to support the current market structure and excessive dominance displayed by Vodacom and MTN who, as history has shown, do not reduce prices unless their smaller competitors lead the way."
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