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Call for affordable telecom services

Johannesburg - The ruling by the South Gauteng High Court in Johannesburg over new call termination ratesis balanced and protects public interest, Parliament's communications portfolio committee said on Tuesday.

"The [committee] welcomes the judgment on mobile termination rates, considering it to be a balanced decision by the courts that supports the consumer and protects public interest and government's policy for reducing communication costs," chairperson Sikhumbuzo Kholwane said in a statement.

"The committee urges all parties involved to respect the decision of the courts and to work collaboratively towards ensuring affordable telecommunication services for all citizens."

The court on Monday declared new call termination rates proposed by the Independent Communications Authority of SA (Icasa) invalid and unlawful.

The court gave Icasa six months to amend its regulations.

MTN [JSE:MTN] and Vodacom [JSE:VOD] took the authority to court to stop it from implementing the regulations on mobile termination rates, which are the rates operators pay one another for calls to other networks.

Cell C and Telkom [JSE:TKG] welcomed the ruling on Monday.

Acting Cell C CEO Jose Dos Santos said it is positive for the consumer and the economy. Telkom concurred adding that it will also stimulate competition in the industry.

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