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Icasa to cut mobile termination rates

Icasa says it intends reducing both fixed and mobile calls to just 8 cents a minute from 1 March, 2017.

FILE: Icasa says it intends reducing both fixed and mobile calls to just eight cents a minute from 1 March 2017. Picture: Supplied.

JOHANNESBURG - The Independent Communications Authority of South Africa (Icasa) has published its proposed new mobile termination rates for the period between October 2014 and February 2018.

Tech Central is reporting it will push down the rates, which operators charge each other to carry calls between their networks, but not as quickly as originally envisaged.

Icasa says it intends reducing both fixed and mobile calls to just eight cents a minute from 1 March, 2017.

The rate of asymmetry, which benefits smaller players, has also been reduced substantially, but Cell C will qualify for asymmetry for the full term of the new rate regulations, a development that is unlikely to find favour at Vodacom and MTN.

Icasa Councillor Katharina Pillay says, "Essentially we are proposing 20 cents, the same 20 cents that we had previously that the court upheld. At the end of the glide path, we'd end up where efficient operators would end up based on the industry model. So that essentially in the mobile environment would go down from 20 cents to eight cents."

The new rates are in draft form and are not final.

They will be published in the Government Gazette tomorrow.