MTN and Cell C to do battle
ICASA will hold hearings tomorrow focusing on the interpretation of the definition of an underserviced area. These hearings form part of a long running dispute between MTN and Cell C regarding the implications of Cell C’s community service telephones (CST) rollout.
In terms of Cell C’s licence, issued on 25 June 2001, Cell C assumed an obligation to rollout 52 000 community service telephones throughout South Africa, within a stipulated time period providing that the rollout must be concluded within 7 years of the Commercial date of its licence.
Cell C met this target in the latter part of 2006, two years before the required deadline in Cell C’s licence.These community service telephones (CSTs) are only entitled to be located in community centres or in areas defined in Cell C’s licence as “under serviced areas”.
The basis for the dispute which persists between MTN and Cell C arises in relation to the interconnection agreement concluded between those parties. MTN alleges that, since certain of Cell C’s CSTs do not (according to MTN) comply with the definitional requirements in Cell C’s licence, they are not to be regarded as CSTs for interconnect purposes.
As the interconnect rate for CSTs are significantly less that the standard interconnect rate, MTN feels that Cell C has overstepped the mark in the rollout of its CSTs in many affluent areas, capitalizing on the lower rates associated with CST calls.
On the back of that contention, MTN has, for some time, refused to make payment to Cell C of any interconnect fees, and has simultaneously contended that Cell C is indebted to MTN in an amount far in excess of what it owes Cell C.
Tomorrow’s hearings at the ICASA offices in Sandton will see MTN and Cell C trying to defend their positions. The hearings start at 09:00 in the ICASA presentation room at Pin Mill Farm, Sandton.
MTN versus Cell C – give your views
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