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Johannesburg - The Independent Communications Authority of South Africa (Icasa) can go ahead with planned cuts for mobile termination rates (MRTs), ruled the South Gauteng High Court on Monday.
Although, it said that the regulations were unlawful and invalid, the declaration of invalidity was suspended for six months.
The mobile termination rate of 20 cents and the asymmetric rate of 44 cents will be implemented for the next six months and will come into effect on April 1 2014.
Vodacom [JSE:VOD] and MTN [JSE:MTN] asked the South Gauteng High Court in Johannesburg to stop Icasa from forcing them to reduce the fees they charge one another to connect calls.
Icasa wants to implement a set of regulations that would see these rates dropped to 10 cents per minute in 2016.
Telkom welcomed the ruling on Monday, saying the court exercised its discretion in the interest of the public.
The telecoms regulator will also have to complete a costing exercise and follow due process within the six month period.
"Telkom will support Icasa in completing this process effectively and efficiently," it said in a statement.
It said the ruling not only benefits consumers, but will also stimulate competition in the industry.
Vodacom lost nearly 2% to R129.99 and MTN was down more than 1% at R215.55 at the close of the JSE on Monday.
- Reuters with Fin24
Although, it said that the regulations were unlawful and invalid, the declaration of invalidity was suspended for six months.
The mobile termination rate of 20 cents and the asymmetric rate of 44 cents will be implemented for the next six months and will come into effect on April 1 2014.
Vodacom [JSE:VOD] and MTN [JSE:MTN] asked the South Gauteng High Court in Johannesburg to stop Icasa from forcing them to reduce the fees they charge one another to connect calls.
Icasa wants to implement a set of regulations that would see these rates dropped to 10 cents per minute in 2016.
Telkom welcomed the ruling on Monday, saying the court exercised its discretion in the interest of the public.
The telecoms regulator will also have to complete a costing exercise and follow due process within the six month period.
"Telkom will support Icasa in completing this process effectively and efficiently," it said in a statement.
It said the ruling not only benefits consumers, but will also stimulate competition in the industry.
Vodacom lost nearly 2% to R129.99 and MTN was down more than 1% at R215.55 at the close of the JSE on Monday.
- Reuters with Fin24
