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Date set for call rate proposals

Oct 13 2009 10:47

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Johannesburg - The Independent Communications Authority of SA (Icasa) and telecommunications groups will meet next week to consider final proposals towards concluding the reduction of the call termination rate.

Icasa said it had met with representatives of Vodacom, MTN, Cell-C, Neotel, Telkom and the Internet Service Providers' Association (Ispa) on Monday to assess the outcome of bilateral discussions between operators on the issue.

Icasa said that industry would spend the next few days finalising bilateral discussions on a final interconnect rate, said to be at 60 cents per minute.

Cellular operators currently pay each other R1.25 to switch a call between networks.

Following open discussions, the parties are set to meet again on October 23.

"Such a rate should be cost-based with a reasonable mark-up not exceeding 50% of cost," the regulator said.

Mobile firms will take part in a set of public hearings in Parliament over the course of the next two days to discuss government's proposal to cut interconnect fees before Christmas.

Icasa had originally set a deadline proposing an implementation date of February 1, 2010, but government stepped in over the weekend, calling for costs to be reduced sooner.

A spokesperson for the department of communications said it hoped to conclude a new reduced pricing structure ahead of the festive season; however the department added that due process was necessary, which could delay its implementation.

- I-Net Bridge

 
 
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