Icasa seeks to reduce communication costs

Icasa's call termination regulations are part of efforts to reduce the overall cost to communicate.

Icasa will remove regulations which include a 50 percent cut in call termination rates from next month. Picture: SAPA

CAPE TOWN - The Independent Communications Authority of South Africa (Icasa) says it's 'call termination regulations' are part of efforts to reduce the overall cost to communicate.

Mobile operator MTN wants Icasa to remove recently published regulations, which include a 50 percent cut in call termination rates from next month.

These are the fees operators charge each other to carry calls between their networks.

Icasa's Paseka Maleka said, "The reason we're decreasing termination rates is so that we reduce the cost to communicate and also to make sure small operators like Cell C and Telkom Mobile are able to grow within the market and get some market share."

Meanwhile, MTN Group on Tuesday said it would pursue legal options against Icasa's decision to reduce termination rates.

Vodacom last week also announced plans to challenge Icasa's decision.

Both companies previously warned Icasa about being overly aggressive in reducing rates.