SA pushes for cheaper mobile calls
12 October 2009
The government has confirmed that it wants to see South Africa's interconnection rates – which mobile phone companies charge for switching calls between networks – to be slashed by 30c, from R1.25 to R0.95, before the end of the year.
South Africa has exorbitant interconnect fees when compared to most other countries.
On Sunday, Department of Communications spokesman Tiyani Rikhotso confirmed media reports that the government was pushing the country's mobile operators to cut the costs, and that mobile phone users could see the first cost cuts by the end of November.
"The discussion [with operators] has been taking place for quite a while, and there hasn't been any movement," Rikhotso said. "Hence we ... would like to see this issue resolved as soon as possible."
Over the next year the department would like to see the interconnection fee cut to 60c, he added.
"There is no disagreement as far as the issue [of needing to cut costs] is concerned. What we are dealing with is the figure [by how much calls are cut] and by when we need to slash the costs now."
Rikhotso said the department would ask the Independent Communications Authority of South Africa (Icasa) to issue a directive to operators on how much and when to cut costs.
"It needs to issue some directive ... It issues licences, so therefore should have the power to determine what kind of charges [are made for calls]," Rikhotso said.
Parliament's communications portfolio committee was expected to meet South Africa's mobile phone operators on Tuesday.
This follows from last month's call, during a National Assembly communications committee meeting, for Icasa to use its powers to set a concrete timetable for this.
At the time, African National Congress (ANC) MP Johnny de Lange proposed that the mobile phone industry appear before the committee to explain the problems it faced, the costs it charged, and to account for the profits made.
Sapa
