Communications Minister Siphiwe Nyanda on Tuesday ordered the Independent Communications Authority of SA (Icasa) to take urgent action to reduce cellphone interconnection rates by the end of November.<\/p>\n
In a policy direction on mobile termination rates (MTR) published in the Government Gazette, Nyanda said a recent benchmarking study had confirmed that South African telecommunications costs were higher than benchmarked countries — Brazil, Chile, Korea, India and Malaysia.<\/p>\n
A key contributor to South Africa’s mobile call tariffs was excessive interconnection rates and specifically MTRs, he said.<\/p>\n
The MTR is the fee one network charges another for terminating or completing calls on its network.<\/p>\n
Nyanda said, in 2007, using purchasing power parity, South Africa’s average MTRs were 27.06 US cents compared to Korea, whose rates were 5.02 US cents, Malaysia 4.56 US cents, and India 1.97 US cents.<\/p>\n
In terms of the Electronic Communications Act, Icasa could prescribe regulations establishing a framework for wholesale interconnection rates to be charged or for specified types of interconnection and associated interconnection services.<\/p>\n
It had become critical that Icasa prescribe the regulations to reduce interconnection rates, he said.<\/p>\n
Therefore, Nyanda directed Icasa in terms of the act to urgently, on or before November 30, 2009:<\/p>\n