DoC issues policy direction to cut interconnect rate

The Minister of Communications Siphiwe Nyanda yesterday issued a policy direction on Mobile Termination Rates in terms of section 3 (2)(c) of the Electronic Communications Act, 2005 (Act No. 36 of 2005).

“This is in line with the Department of Communications’ commitment to reduce the cost to communicate,” the Department of Communications (DoC) said in a press statement.

The ‘policy direction on mobile termination rates’ directed ICASA to:

1. prescribe the regulations in terms of the Act;
2. take into consideration the benchmarking study on the cost to  communicate concluded and published by the department in 2009, and any other relevant studies or information; and
3. lower the interconnection rates, specifically the mobile termination rate, to a cost-based rate.

The DoC invited interested parties to provide written submissions in relation to the proposed policy direction within 30 working days.

Discussion on wholesale termination rates

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