advertisement
spectrum
Facebook
X
LinkedIn
WhatsApp
Reddit

ICASA slams brake on termination rate change

The communications regulator, ICASA, is going to delay its plans to cut the mobile termination rate (MTR) for two months, while it prepares a submission to the High Court laying out the case for cuts in the face of operator opposition.

In a statement issued to the press this afternoon, ICASA says that it is acting in the public interest by slowing the process and allowing the Court time to consider a 399 page application from MTN to suspend ICASA’s plans.

MTR is the amount operators can charge each other for connecting customers to each others’ networks. Earlier this month, ICASA introduced a new ‘asymmetric’ MTR which would see smaller networks – Cell C and Telkom – able to charge more than large networks (ie. Vodacom and MTN). Asymmetric rates have been used overseas to promote competition in cases where larger networks are vastly more able to absorb these costs than their smaller competitors and effectively price rivals out of the market.

MTN, however, claims that they amount to a subsidy for smaller networks and wants ICASA’s decision overthrown – hence the submission to the High Couirt which was due to be heard on 25th February.

In its statement today, ICASA said that it is putting back the date from which the new MTRs will apply from 1st March to 1st May. The regulator justified this saying:

It is important that the High Court is fully informed of all the relevant issues before making its decision and it is therefore necessary that the affected parties have sufficient time to properly prepare their answering papers, particularly given the complexity of the matter.

advertisement

About Author

advertisement

Related News

advertisement