Cell C hails probe into interconnection costs
The company on Tuesday reiterated its support for the regulator to provide a cost-based rate structure in determining interconnection costs for licensees with significant market power.
"For Cell C, the key element of the inquiry will be to ascertain whether there is competition in the broader market – fixed and mobile," said Vanashree Pillay, Cell C’s Executive Head for Corporate Communications.
"Should this not be the case, ICASA must then identify the players in the telecommunications industry who have significant market power."
"Subsequently, we would expect the cost of interconnection with regard to these dominant players, whether they be mobile or fixed-line operators, to be reduced," added Pillay.
"This would give Cell C the necessary room, as the late entrant to the market, to compete on an effective basis – something which it was denied on licensing."
The company said it hoped that the enquiry would focus equally on both the mobile and fixed interconnection rates as the ratio between mobile and fixed interconnection rates in South Africa should mirror international benchmarks. This is currently not the case.
"The achievement of a cost based interconnect regime would signify the removal of one of the primary structural barriers to competition in the SA telecommunications market."
"In this regard, it is as fundamental to competition as MNP which now gives consumers the opportunity to choose or switch network providers without being tied down by a phone number," noted Pillay.
The ripple effect would also be felt by consumers who would benefit from lower call rates.
The company will submit its own presentation and response to ICASA at the end of March, it said.
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