Following a meeting between Icasa, Vodacom, MTN, Cell C, Telkom, Neotel and the Internet Service Providers Association, Icasa said the interconnect rate had been discussed.<\/p>\n
Interconnect rates are the amounts charged by networks for carrying calls on behalf of one another, with South Africa having exorbitant interconnect fees when compared to most other countries.<\/p>\n
“The meeting was necessitated by the ongoing public discussions around the cost of call termination in the country,” Icasa said in a statement.<\/p>\n
After deliberations, the meeting had resolved to embark on an industry-led process to reduce termination — or interconnection — rates, with Icasa exercising an oversight responsibility.<\/p>\n
The meeting resolved to ensure that in negotiating a new termination rate regime they took into account competition law requirements.<\/p>\n
The meeting decided to conclude negotiations between the operators by the end of December 2009, with Icasa proposing an implementation date of February 1, 2010.<\/p>\n
“Meanwhile, Icasa will continue with its process in terms of Chapter 10 of the Electronic Communications Act.<\/p>\n
“This process will entail the publication of the necessary regulatory framework pursuant to regulations defining the relevant market; evaluating the effectiveness of competition; a declaration of licensees with significant market power and the implementation of pro-competitive remedies.”<\/p>\n