How would you cut telecoms prices?
The Portfolio Committee on Communications (PCC) has called for written submissions on measures to reduce interconnect rates and the high cost of telecommunications in South Africa.
In a press statement the Committee said that, “In line with Parliament’s core objective of facilitating public participation, the Portfolio Committee on Communications invites the public to submit written submissions on measures to reduce interconnection rates and the high costs of telecommunications in South Africa.”
The PCC said that it believes that interconnection rates in South Africa set at R1.25 per minute during peak times are exorbitant and excessive, resulting in extremely high telecommunication prices.
“This is the consequence of apparent historical collusion between dominant mobile operators in the country – which has placed profits and greed above people – and the incapacity of ICASA to effectively regulate this matter,” the committee said.
The committee further said that the high costs of mobile and fixed line telecommunications has impacted adversely on the South African economy and negatively on citizens, particularly the poor and marginalized. “There is unanimity in industry, government, other relevant stakeholders and the regulatory authority that the present situation is socially indefensible and economically unjustifiable.”
The PCC asked for written submissions to speak to the following proposal:
- mobile and telecoms operators drop the interconnection rates with effect from 1 November 2009 to 60 cents per minute during peak times;
- interconnection rates be further reduced by 15 cents annually on the 1 November for each successive year until 2012; and
- as a general rule the progressive reductions in interconnection rates between 2009 and 2012 should yield concomitant reductions in the actual consumer (retail) prices of telecommunications.
Based on the written submissions, the Committee will invite selected stakeholders to make oral representations on 13 and 14 October 2009 in Parliament.
Interested individuals and interest groups wishing to comment on this subject can email comments to the Committee Secretaries Ms Noluthando Skaka at [email protected] or Ms Bulelwa Madikane at [email protected] by not later than Friday, 02 October 2009 at 12.00 noon.
Enquiries can be directed at Ms Noluthando Skaka: 021 403 3751 cell 083 709 8520 / 083 709 8487
How would you reduce telecoms rates?
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