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Dave Gale, business development director at niche telecom service provider Storm, says Icasa should adopt a "measured" and "controlled" approach to cutting interconnection fees. A rapid reduction, he says, may be disruptive to the market.
But Vodacom says the foundation's suggestions would simply suppress competition and reduce the range of options available to consumers.
All tariff plans and prices are already strictly regulated by Icasa, it adds. Further regulatory intervention will not reduce prices, but will drive private investment away, Vodacom says.
It warns that "once lost, [investment in telecoms in SA] will not easily be restored. Then we might debate how to have a telephone again, as opposed to what we pay for a telephone call."