MTN will be in the dock for charging a commercial rate to connect calls made from Cell C’s community service pay phones when callers dial an MTN number. Since the phones are in underserviced areas, Cell C believes MTN should charge the subsidised interconnection fee of just 6c, instead of the R1,25 it demands. <\/p>\n
The two companies are withholding the fees from each other, with Cell C claiming that MTN owes it R1bn after years of overcharging and Cell C owing MTN R800m in retaliation. <\/p>\n
Yesterday the tribunal agreed that Cell C could participate in the hearings against MTN by calling its own witnesses, cross-examining witnesses and presenting evidence of its own. <\/p>\n
The dispute has been going on since April 2005 when Cell C lodged a complaint with the Competition Commission alleging that MTN was abusing its dominance and was guilty of price discrimination. <\/p>\n
The commission agreed and referred the complaint to the higher authority of the tribunal in July. <\/p>\n
MTN is accused of engaging in prohibited price discrimination by charging Cell C the commercial interconnection fee despite charging Vodacom the subsidised rate for calls made from Vodacom’s community service phones, even when the phone boxes are standing side-by-side. <\/p>\n
The commission accuses MTN of abusing its dominance by engaging in prohibited practices by disregarding the interconnection deal it has with Cell C and refusing to terminate calls from Cell C’s community phones at the subsidised rate. <\/p>\n
MTN argues that Cell C is placing its community service phones in areas that are not underserved, and it therefore has no right to expect the reduced interconnection fees. <\/p>\n
Cell C says that the areas were selected in consultation with the industry regulator.<\/p>\n