STATEMENT: ICASA must end phoney price wars and cut cost of communication
Issued by the Right2Know Campaign, 20 August 2014
This week the Independent Communications Authority of South Africa (Icasa) released a revised model for determining mobile termination rates (MTRs), the interconnect fees that cell phone providers charge each other to carry calls on their networks.
Icasa’s revised model is in response to a court ruling in March that recognised that the cost of communication was too high but found Icasa’s existing model for interconnect fees was invalid because Icasa had not provided a clear rationale for how it set the fees. The Court gave Icasa six months to produce a new model.
Since the court’s ruling, MTN, Vodacom Telkom and Cell C have been engaged in an advertising war promising lower call rates. These new rates have largely been used as a marketing tactic to attract new customers and are not necessarily permanent.
R2K has noted concerns that Icasa’s modified model allows MTN, Vodacom, Cell C and Telkom to include costs that are not directly related to the interconnect fees, which will inflate the actual cost of communication and perpetuate profiteering through termination rates.
It is the right of everyone in South Africa to communicate. Access to affordable telephony and internet are vital for the health of our democracy. R2K rejects the profiteering of all phone companies at the cost of our people.
We reiterate our call for free basic telecommunications services. The new interconnect fees must put an end to the phoney price wars and cut the cost to users meaningfully.
—ENDS—
For further comment contact:
John Haffner, R2K Telecoms Convener: 060 366 5880
