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Cape Town - Cell C and Telkom on Monday cheered the ruling by the South Gauteng High Court in Johannesburg for the Independent Communications Authority of South Africa (Icasa) to go ahead with cuts for mobile termination rates (MRTs).
Although, the court ruled that the regulations were unlawful and invalid, the declaration of invalidity was suspended for six months.
The MRTs rate of 20 cents and the asymmetric rate of 44 cents will come into effect on April 1 2014. It will be implemented for the next six months.
Cell C acting CEO Jose Dos Santos said in a statement the ruling was a step in a right direction, reported Sapa.
He said it was positive news for consumers and the economy.
However, Dos Santos also cautioned that uncertainty over termination rates would make it difficult for smaller operators to confirm their business plans.
"It also negatively impacts on the smaller operators' ability to bring down prices to ensure all South Africans have access to affordable communications."
Telkom welcomed the ruling saying the court exercised its discretion in the interest of the public.
It said the ruling not only benefits consumers, but will also stimulate competition in the industry.
The telecoms regulator will also have to complete a costing exercise and amend its regulations within six months.
"Telkom will support Icasa in completing this process effectively and efficiently," it said in a statement.
Vodacom [JSE:VOD] and MTN [JSE:MTN] instituted a legal case to stop Icasa from forcing them to reduce their fees.
The telecoms giants were in nosebleed territory at the close of the JSE on Monday, while Telkom SA [JSE:TKG], which had been down for most of the day, turned positive, reported Reuters.
Vodacom lost nearly 2% to R129.99 and MTN was down more than 1% at R215.55.
Icasa wants to implement a set of regulations that would see rates drop to 10 cents per minute in 2016.
- Fin24, Reuters & Sapa
Although, the court ruled that the regulations were unlawful and invalid, the declaration of invalidity was suspended for six months.
The MRTs rate of 20 cents and the asymmetric rate of 44 cents will come into effect on April 1 2014. It will be implemented for the next six months.
Cell C acting CEO Jose Dos Santos said in a statement the ruling was a step in a right direction, reported Sapa.
He said it was positive news for consumers and the economy.
However, Dos Santos also cautioned that uncertainty over termination rates would make it difficult for smaller operators to confirm their business plans.
"It also negatively impacts on the smaller operators' ability to bring down prices to ensure all South Africans have access to affordable communications."
Telkom welcomed the ruling saying the court exercised its discretion in the interest of the public.
It said the ruling not only benefits consumers, but will also stimulate competition in the industry.
The telecoms regulator will also have to complete a costing exercise and amend its regulations within six months.
"Telkom will support Icasa in completing this process effectively and efficiently," it said in a statement.
Vodacom [JSE:VOD] and MTN [JSE:MTN] instituted a legal case to stop Icasa from forcing them to reduce their fees.
The telecoms giants were in nosebleed territory at the close of the JSE on Monday, while Telkom SA [JSE:TKG], which had been down for most of the day, turned positive, reported Reuters.
Vodacom lost nearly 2% to R129.99 and MTN was down more than 1% at R215.55.
Icasa wants to implement a set of regulations that would see rates drop to 10 cents per minute in 2016.
- Fin24, Reuters & Sapa
