MTN joins Vodacom, Cell C in rate cut commitment
The mobile interconnect debacle fell under the spotlight once again after ICASA shocked the telecoms industry when they announced that they would not review the interconnection amendment agreements between Vodacom, Cell C and MTN. The reason was because these agreements sought to bind the Regulator to an undertaking to hold back on reviewing mobile termination rates until 1 March 2013.
The mobile operators have however indicated that they will cut rates even if the ‘glide path clause’ is not accepted by ICASA. MTN is the latest company to announce that it will cut its peak interconnect rate from R1.25 per minute to 89c on March 1.
“MTN has finalised separate amended interconnection agreements with Vodacom and Cell C regarding the implementation of the Mobile Termination Rate (MTR) decrease from the current R1.25 to 89c per minute. The agreements will be lodged with the Independent Communications Authority of South Africa (ICASA) pending the secured signatures. This voluntary industry reduction will be implemented on 1 March 2010,” said MTN SA’s Robert Madzonga.
Vodacom and Cell C last week announced that they are planning to reduce their mobile termination rates on March 1. “In the interest of consumers and the country, Cell C is committed to the lowering of interconnection rates by 1 March 2010. We are actively engaging the relevant parties, including the department of communications, Icasa and our fellow operators,” the company’s Chief Executive Officer Lars Reichelt said in a statement.
“Vodacom is committed to the reduction of the interconnection rates as announced by the minister [of communications] in November last year,” company Chief Executive Officer Pieter Uys said. “We do not believe that the debate around glide paths or the formal regulatory process should delay the reduction in interconnection rates.”
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