Cell C warns of higher prices, network concerns

Cell C said that if the new call termination regulations 2014 does not come into effect, its only real alternative would be for it to increase retail rates in line with Vodacom and MTN’s prices.

There is currently a court battle under way in which MTN and Vodacom are challenging the introduction of new asymmetrical call termination rates.

Vodacom and MTN lodged an application for an urgent interdict to stop the implementation of the 2014 call termination regulations, and have it reviewed.

The Independent Communications Authority of South Africa (Icasa), Cell C and Telkom are fighting against Vodacom and MTN’s application.

In its answering affidavit Cell C said that granting the interdict will cause serious harm to the company.

According to Cell C stopping the implementation of the regulations will have a devastating effect on the company. This includes:

  1. Affecting Cell C’s ability to service its debts
  2. Negatively impact Cell C’s ability to improve its customer care services
  3. Restrict Cell C from investing significantly in its network
  4. Continue to limit the company’s negotiating power

Cell C said that the only real alternative if the 2014 regulations do not come into effect will be for the company to increase retail rates.

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Cell C warns of higher prices, network concerns