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Johannesburg - Vodacom will consider its options regarding the telecommunications regulator Icasa's new call cost regulations that favour rivals Cell C and Telkom Mobile.
The Independent Communications Authority of South Africa (Icasa) on Wednesday halved the fees mobile phone companies can charge rivals to use their network, part of a plan to reduce call costs in Africa.
“We will consider our options in order to do our best to protect our customers and ensure that South Africa continues to get the network investment that it needs and deserves,” said Vodacom CEO, Shameel Joosub.
He said Vodacom is supportive of lower mobile termination rates.
"Our key request to Icasa has been to consider the adverse impact of lower termination rates on our customers, our partners and our suppliers.
"Our recommendation has not been accepted and we will be reviewing the potential impact both internally and externally."
Vodacom had also made representations to Icasa about the proposed asymmetry structure, which is now more aggressive to the detriment of Vodacom’s customers and business.
"We feel that the level of asymmetry is unjustified and that there is no clear basis for the differential. This asymmetry is clearly a subsidy for the smaller operators," he said.
No win for consumer
"We believe that the outcome has been reached without following due process."
Vodacom is of the opinion that a cost-based study, which is a prerequisite before reaching this type of decision has not been conducted and shared with it as role player.
The company will be considering its options in relation to this.
“I wish I could say this is a victory for the consumer, but it is far from it," said Joosub.
"This is a subsidy which in effect means that Vodacom will be charged more to call Cell C and Telkom Mobile than the latter will be charged to call Vodacom."
Joosub said this prejudices Vodacom’s customers, and rewards those who have not invested in their networks at the expense of those who have.
Must still study documents
MTN told Fin24 it takes note of the call termination rates that were announced by Icasa.
“We have previously stated our willingness to co-operate with the authority to work towards reducing the cost of communication.” said Zunaid Bulbulia, MTN SA CEO.
“The regulation setting out the pertinent detail and the explanatory memorandum containing Icasa’s reasons have unfortunately not yet been published."
As a result it is difficult for MTN at this time to meaningfully comment on the full context of the issue.
"We trust that those documents will be published as soon as possible so that MTN could analyse the content in detail. Once those documents have been disclosed MTN will be in a position to respond with the next steps," said Bulbulia.
"Suffice to say that the call termination rates announced by Icasa represents a substantial departure from the 2010 call termination regulations, which set an important regulatory precedent in relation to matters such as cost-orientation of the rate-setting, a managed glide path, and declining asymmetries."
Bulbulia said MTN does not support the proposed mobile asymmetrical rates - that is competitive cross-subsidies - and believes these to be unsubstantiated.
"MTN will also have to scrutinise and consider a number of other due process concerns once the regulation is published," said Bulbulia.
"In this regard, MTN is considering all its options.”
- Fin24
The Independent Communications Authority of South Africa (Icasa) on Wednesday halved the fees mobile phone companies can charge rivals to use their network, part of a plan to reduce call costs in Africa.
“We will consider our options in order to do our best to protect our customers and ensure that South Africa continues to get the network investment that it needs and deserves,” said Vodacom CEO, Shameel Joosub.
He said Vodacom is supportive of lower mobile termination rates.
"Our key request to Icasa has been to consider the adverse impact of lower termination rates on our customers, our partners and our suppliers.
"Our recommendation has not been accepted and we will be reviewing the potential impact both internally and externally."
Vodacom had also made representations to Icasa about the proposed asymmetry structure, which is now more aggressive to the detriment of Vodacom’s customers and business.
"We feel that the level of asymmetry is unjustified and that there is no clear basis for the differential. This asymmetry is clearly a subsidy for the smaller operators," he said.
No win for consumer
"We believe that the outcome has been reached without following due process."
Vodacom is of the opinion that a cost-based study, which is a prerequisite before reaching this type of decision has not been conducted and shared with it as role player.
The company will be considering its options in relation to this.
“I wish I could say this is a victory for the consumer, but it is far from it," said Joosub.
"This is a subsidy which in effect means that Vodacom will be charged more to call Cell C and Telkom Mobile than the latter will be charged to call Vodacom."
Joosub said this prejudices Vodacom’s customers, and rewards those who have not invested in their networks at the expense of those who have.
Must still study documents
MTN told Fin24 it takes note of the call termination rates that were announced by Icasa.
“We have previously stated our willingness to co-operate with the authority to work towards reducing the cost of communication.” said Zunaid Bulbulia, MTN SA CEO.
“The regulation setting out the pertinent detail and the explanatory memorandum containing Icasa’s reasons have unfortunately not yet been published."
As a result it is difficult for MTN at this time to meaningfully comment on the full context of the issue.
"We trust that those documents will be published as soon as possible so that MTN could analyse the content in detail. Once those documents have been disclosed MTN will be in a position to respond with the next steps," said Bulbulia.
"Suffice to say that the call termination rates announced by Icasa represents a substantial departure from the 2010 call termination regulations, which set an important regulatory precedent in relation to matters such as cost-orientation of the rate-setting, a managed glide path, and declining asymmetries."
Bulbulia said MTN does not support the proposed mobile asymmetrical rates - that is competitive cross-subsidies - and believes these to be unsubstantiated.
"MTN will also have to scrutinise and consider a number of other due process concerns once the regulation is published," said Bulbulia.
"In this regard, MTN is considering all its options.”
- Fin24
