2. Findings
Having considered the written and oral submissions and presentations from all
interested parties and the current regulatory framework, in terms section 4C (6) of the
ICASA Act, the Authority makes the following findings:
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2.1. Mobile Fees and Charges
2.1.1. The current framework for regulation in respect of mobile prices that is in use in
South Africa requires mobile operators to lodge tariffs or fees for services with the
Authority before they may charge any tariffs or fees for services.
2.1.2. Increases in any existing tariff plans cannot be greater than the percentage year
on year increase in the Consumer Price Index (CPI). Where the Authority disallows or
delays the proposed tariff increase, it must provide written reasons to the licensee for its
decision.
2.1.3. It is the Authority’s view that this framework for fees and tariffs is not adequate in
that the CPI criterion serves as a major decision-making tool even though certain
considerations such as the economic and social impact associated with tariff increases
are taken into account in the analysis of tariff applications.
2.1.4. Chapter 10 of the EC Act deals with competition matters wherein the Authority is
required to define relevant market segments in the electronic communications sector
the primary purpose being to impose regulatory measures in cases where the
prevalence of significant market power is established.
2.1.5. The Authority will commence the process of defining markets as required by
Chapter 10 of the EC Act. In this regard, on or before 31 January 2007, the Authority
will publish a discussion document for public comment to solicit written comments from
all interested parties.
2.1.6. The Authority has concluded that in order for mobile prices in South Africa to be
reduced, the Authority has to turn its attention to examine wholesale mobile and f ixed
line call termination charges. This has to be undertaken in accordance with Chapter 10
of the EC Act.
2.1.7. In this regard a discussion document regarding wholesale call termination will be
published on or before 31 January 2007 soliciting written representations.
2.1.8. This approach will allow the Authority to deal with issues of alleged significant
market power and pricing in a holistic manner.
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