Minister orders call rate cut

Cape Town - General Siphiwe Nyanda the Communications Minister has issued a policy directive ordering the telephone regulator, the Independent Communications Authority of SA (Icasa), to cut the interconnection rate charged by the different phone companies - line and mobile - for connecting calls originated in another company's network.

In a notice published in Tuesday's Government Gazette, Nyanda calls for the charges to be cut to a cost-based rate. He also wants to see the regulator take into account the research done by the department into charges levied by phone companies in other countries similar to South Africa - such as Brazil, Chile, Korea, India and Malaysia.

That study showed that while South African interconnection charges stood at an average (given purchasing power parity) of 27.6 US cents, Koreans paid the equivalent of 5.02 US cents, Malaysians paid 4.56 US cents, and Indians paid 1.97 US cents.

"Interested parties," the notice in the Gazette said, "are invited to provide written submissions in relation to the proposed policy direction within 30 working days of the date of publication of this notice."

- I-Net Bridge