Cellular operators off the hook
For now, consumers will have to grapple with high tariffs, as Icasa’s intervention into Vodacom, MTN and Cell C’s pricing regimes seems highly unlikely, at least over the short term.
Tracy Cohen, the Icasa councillor overseeing investigations, says that the regulator had to discontinue its drawn out enquiry in its current format.
Says Cohen: "The initial processes were guided by the old telecommunications act. With the new Electronic Communications Act (ECA) taking effect, Icasa would be required – subsequent to intervening in the price regulations – to re-examine wholesale call termination in both the fixed and mobile space."
Icasa will now have to issue a new discussion document soliciting written comment from the public and other interested parties, as required by the ECA.
During their submissions to Icasa in September last year, Vodacom and MTN lashed out at the regulator, describing its discussion document as flawed. Arguing that tariffs in SA were reasonably fair, the cellular operators contended that Icasa should have instead left it to the market to determine pricing issues, as intervening could instead negatively affect consumers.
With the new discussion document set to be made available for public comment later this month, the cellular operators – plus fixed-line operator Telkom – will again be hauled before Icasa to explain their pricing structures.
Finweek
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