ICASA says 60c interconnect fee likely
The Independent Communications Authority of SA (ICASA) recently met with representatives of Vodacom, MTN, Cell-C, Neotel, Telkom and the Internet Service Providers Association (ISPA).
The meeting was convened for industry to brief ICASA on the outcome of bilateral discussions between operators on the reduction of the current call termination rate. After deliberations, the meeting came to the following conclusions:
1. Industry will spend the next few days finalising bilateral discussions on the final rate;
2. The parties will meet again on Friday, the 23rd October 2009, to consider final proposals towards concluding the reduction of the call termination rate;
3. Such a rate should be cost based with a reasonable mark-up not exceeding 50% of cost;
Meanwhile in a press briefing ICASA said 60c a minute is a “likely” interconnection fee. This may well be reached by two rate cuts of around 30c each.
The Department of Communications spokesman Tiyani Rikhotso recently said that the DoC wanted to see interconnection rates – which cellphone operators pay each other for switching a call between networks — to drop by 30c, from R1.25 to R0.95 by the end of November.
ICASA said that the cellular operators have until end of next week to come up with a workable plan to cut interconnect fees – or face severe action. When asked what will happen if the mobile operators refuse to cut interconnect rates, ICASA Chairman Paris Mashile said that it will be like ‘the Titanic versus an iceberg’. “The Titanic usually comes short,” said Mashile.
Mobile interconnect rates – give your views
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