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Icasa accused of foul play

Johannesburg - The Independent Communications Authority of SA (Icasa), the telecommunications regulator, has been accused of negating its fiduciary duties by colluding with a cellphone operator to undermine the competitiveness and viability of black public cellphone operators.

These accusations were levelled at both Icasa and Vodacom by the National Association Telecommunications Organisation of SA (Natosa), a body that represents about 1 400 mostly black public cellphone operators.

The body has fired a salvo at Vodacom for negotiating in bad faith by failing to disclose its intention to switch the billing process from a 60/30 to a 60/60 unitisation when the tariff increases became effective in November this year.

In terms of the 60/30 unitisation, customers were billed 70 cents for the first minute and thereafter charged for every 30 seconds.

Nitosa officals charge that with the proposed 60/60 billing, their competitiveness could be compromised as customers would be billed for airtime they have not consumed.

"Instead, they have negated their watchdog role and given Vodacom the green light to go ahead with switching the billing methods even though it will make the cost of calls way out of reach for ordinary consumers," said Natosa officials, who preferred not to be named.

"Vodacom is actually violating its mandate of rolling out phones at subsidised tariffs to under-serviced areas since they have attained their social responsibility targets," charged Natosa officials.

As part of its licence requirements, Vodacom was obliged to roll out 22 000 public cellphones to under-serviced areas, a target that has been attained.

"The decision to switch the billing method will hit consumers very hard in the pocket and make a mockery of the empowerment process," charged Nitosa officials.

"Though we do not oppose the annual tariff increases, we are much concerned that the shift in the billing process will adversely impact on the competitiveness of our members," they said.

Before the tariff increases, consumers were paying 70c a minute, but Vodacom and other cellphone operators suggested a tariff increase of R1 at peak hours peak and 85 cents off peak, which the organisation rejected.

According to Nitosa, they had tabled an alternative offer of R1 on and off peak which the cellphone operator "circumvented" by switching the billing method.

In a bid to voice their concerns, Natosa said they had already made a presentation to the parliamentary telecommunications committee and have further engaged Vodacom and Icasa on the issue.

Vodacom group executive for corporate affairs Joan Joffe said the changes that were introduced were a culmination of protracted negotiations between all the stakeholders, and stressed that "the parties had agreed that calls should be billed on a flat per minute basis".

"This change was necessary because community services telephones (CST) are heavily subsidised, with the operators losing a significant amount of money by providing these telephones," said Joffe.

Icasa Icasa spokesperson Kotli Modise said the decision to implement a flat rate of 85c a minute would carry cost benefits as most consumers use public phones during the day (peak hours) .

"This means that the differentiation of peak and off peak would have had very little benefit to users. It also means that the public saves on the high tariff that would have resulted from differentiated periods."

She said that insisting on a 60/30 unitisation would result in consumers carrying the burden of R1.20 (unitised as 60/30) during daytime and a discount of off-peak that is applicable during early morning and night time when the majority of phone shops are closed for business anyway.

She urged Natosa to lodge a formal complaint with the regulatory body and challenged them to make input on new tariffs.

She said that before the increment, Icasa had not approved an increase in community service telephones tariffs, although the operators have been requesting them for two years.

"Icasa, in its evaluation, noted that the 85c tariff is in line with the spirit of community service telephone rollout, as it is still subsidised by the operators and is below operator cost," said Modise.

"It is important to note the 85c tariff is a flat rate and it is indeed the rate available to consumers during peak and off-peak hours."

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