Minister backs Icasa on mobile fees
4 February 2010
Communications Minister Siphiwe Nyanda has backed South Africa's telecoms regulator in its dismissal of an agreement by the country's mobile operators to cut their call interconnection charges, saying the agreed reductions were too gradual.
"It's the minister's view that the proposed three-year glide path period is long and unfair to consumers, who have been affected by high telecommunication costs for too long," the communications ministry said in a statement on Wednesday.
"The minister respects the independence of Icasa and had indicated in his report to Parliament last year that the final decision on this matter rested with the regulator.
"The ministry believes that the 89/77 cents (peak and off-peak respectively) are reasonable were they to be implemented within a shorter period than that suggested by the mobile operators."
The Independent Communications Authority of South Africa (Icasa) said on Tuesday that it would not support an agreement by mobile networks on interconnection rates and that it would first release draft regulations on the matter.
Icasa received interconnection amendment agreements between Vodacom, Cell C and MTN on 25 January.
"These agreements sought to bind the Authority to an undertaking not to review mobile termination rates until 1 March 2013," Icasa said in a statement.
"For this reason, the Authority has decided not to review the interconnection amendment agreements as submitted."
Icasa planned to release its draft regulations on the matter in March 2010, and hoped the regulations would lead to a reduction in charges and equitable access to existing networks.
An interconnection fee is the flat rate mobile operators charge to connect a caller from one operator's network to another.
In October, a parliamentary committee heard that the companies charge each other R1.25 for this service, which is carried over to the consumer.
Nyanda last year ordered Icasa to take urgent action to reduce cellphone interconnection rates.
The move comes amid pressure on the companies to reduce mobile rates, which are considered excessively high.
Sapa
