Moral persuasion fails with Vodacom, MTN says ICASA
The Independent Communications Authority of SA (ICASA) today met with representatives from Vodacom, MTN, Cell-C, Telkom, and ISPA with the hope of persuading mobile operators to reduce the mobile termination rates. The meeting was a follow-up of the previous consultative meeting which resolved to explore avenues for arriving at a cost oriented price.
ICASA today said that the mobile operators had nothing to put on the table as they could not come up with an agreed mobile termination rate amongst themselves. “As a matter of fact, Vodacom and MTN refused to disclose their bilateral mobile termination rate agreement at the meeting,” ICASA said in a press statement.
“Given that the moral suasion process did not yield positive results, the Authority will nevertheless continue with its regulatory processes of developing a framework for competition and cost-based pricing in the voice market as set out in Chapter 10 of the Electronic Communications Act (ECA),” ICASA said.
ICASA added that it has already declared all mobile operators as having Significant Market Power (SMP) in terms of mobile termination rate. “And, in terms of Chapter 10 of the ECA, the Authority has already identified and defined the call termination market as one of the priority markets to be subjected to competition regulation,” said ICASA.
The other supplementary regulatory processes that ICASA is to embark upon are:
- Assessing the competitiveness or anti-competitiveness of the market; and
- Imposing pro-competitive remedies, including cost based pricing
“The Authority is convinced that the conclusion of its regulatory work, as outlined in the law, remains the most optimal way to the resolution of these matters. This process will also be concluded by end of this financial year (31 March 2010),” ICASA concluded.
Telkom said that it “continues to support all processes relating to the lowering of interconnection rates for the benefit of our customers.”
Vodacom did not respond to requests for information while Cell C and MTN could not provide any feedback by the time of publication.
Vodacom, MTN, Cell C & Icasa – interconnect rate agreement possible?
Loading ...