Icasa rejects cell fees request

Johannesburg - The Independent Communications Authority of SA (Icasa) will not support an agreement by mobile networks on interconnection rates, saying on Tuesday it will first release draft regulations on the matter.

Icasa received interconnection amendment agreements between Vodacom, Cell C and MTN on January 25.

"These agreements sought to bind the Authority to an undertaking not to review mobile termination rates until March 1 2013," Icasa said in a statement.

"For this reason, the Authority has decided not to review the interconnection amendment agreements as submitted."

Icasa planned to release its draft regulations on the matter in March 2010 and hoped the regulations would lead to a reduction in charges and equitable access to existing networks.

An interconnection fee is the flat rate mobile operators charge to connect a caller from one operator's network to another.

In October a parliamentary committee heard that the companies charge each other R1.25 for this service, which is carried over to the consumer.

Communications Minister Siphiwe Nyanda last year ordered Icasa to take urgent action to reduce cellphone interconnection rates.

The move comes amid pressures on the companies to reduce mobile rates considered excessively high.

- Sapa