Publications
Partners
Johannesburg - The Independent Communications Authority of South Africa (Icasa) has given industry role players until Friday to hand in their final written submissions on proposed new interconnection fee regulations.
Last week, Icasa held public hearings on the regulations, which determine that from July 1 interconnection rates for cellphone calls in peak periods have to be reduced to 65c a minute from the current 89c.
The interconnection rate is the fee operators charge one another for switching calls between networks, also known as the wholesale price of a call.
The date the regulations come into effect was one of the contentious points in the hearings. Icasa will study all submissions during the next few weeks.
It said the granting of extra time to obtain more information could well have an effect on the final format of regulations as well as the date the lower rates come into operation.
Icasa said on Friday that the object of the process is threefold: to ensure fair prices for consumers, and to promote competition as well as a favourable investment environment.
If the regulations are accepted in their current form, it should have a far-reaching impact on cellphone costs for consumers.
MTN Group [JSE:MTN], Vodacom Group [JSE:VOD] and Cell C have warned that the sudden and sharp fall in rates could harm the industry, which could ultimately be detrimental to the consumer.
On March 1, these cellphone operators already voluntarily – but after considerable political pressure – reduced their interconnection rates from R1.25 a minute to 89c.
However, in the hearings there were allegations that this discount was not passed on to the consumer.
- Sake24.com
Last week, Icasa held public hearings on the regulations, which determine that from July 1 interconnection rates for cellphone calls in peak periods have to be reduced to 65c a minute from the current 89c.
The interconnection rate is the fee operators charge one another for switching calls between networks, also known as the wholesale price of a call.
The date the regulations come into effect was one of the contentious points in the hearings. Icasa will study all submissions during the next few weeks.
It said the granting of extra time to obtain more information could well have an effect on the final format of regulations as well as the date the lower rates come into operation.
Icasa said on Friday that the object of the process is threefold: to ensure fair prices for consumers, and to promote competition as well as a favourable investment environment.
If the regulations are accepted in their current form, it should have a far-reaching impact on cellphone costs for consumers.
MTN Group [JSE:MTN], Vodacom Group [JSE:VOD] and Cell C have warned that the sudden and sharp fall in rates could harm the industry, which could ultimately be detrimental to the consumer.
On March 1, these cellphone operators already voluntarily – but after considerable political pressure – reduced their interconnection rates from R1.25 a minute to 89c.
However, in the hearings there were allegations that this discount was not passed on to the consumer.
- Sake24.com
