Vodacom, MTN win one battle in MTR war

Bloomberg reported that the Independent Communications Authority of South Africa (Icasa) “has decided to engage in a reconsideration of the termination rates applicable for the years beginning 1 April 2015 and 1 April 2016.”

This decision followed legal action by Vodacom and MTN regarding Icasa’s call termination rates regulations, 2014.

According to the Bloomberg report, Icasa’s decision is contained in its response to Vodacom and MTN’s court action. The review process will take six months.

Icasa unveiled the new call termination rates on 29 January 2014, which will see mobile termination rates cut from 40c to 10c over the next three years.

The regulations also increase the asymmetry between Vodacom and MTN and the smaller operators – Cell C and Telkom Mobile.

This means that Cell C and Telkom Mobile will get more money to terminate a call on their networks (44c/minute in 2014) than Vodacom and MTN (20c/minute in 2014).

These new mobile termination rates are good news for Cell C and Telkom Mobile, while MTN and Vodacom will find it tougher to compete.

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Vodacom, MTN win one battle in MTR war