Icasa disputes MTN, Vodacom accusations
The cellphone giants have accused Icasa of unlawful and miscalculated mobile termination rates.
JOHANNESBURG - The Independent Communications Authority of South Africa (Icasa) has disputed accusations by Vodacom and MTN that new regulations regarding mobile termination rates (MTRs) are miscalculated and unlawful.
On Wednesday, the communications regulator tabled its argument in the South Gauteng High Court opposing a bid by the two networks to stop the new rates from being implemented.
Termination rates are the fees companies charge each other to connect calls between networks.
The new rates, set to come into effect next Tuesday, will see bigger cellphone companies paying higher rates to their smaller counterparts.
Meanwhile, Cell C has dismissed accusations by the two mobile giants that they will use the money received from MTRs to reward shareholders and compete aggressively in the market.
Icasa initially stipulated that there would be gradual decline in rates for the next three years, taking into consideration the difference between the bigger and smaller companies.