Icasa slashes interconnect and termination rates

2010-10-29 12:25

Mobile phone companies will have to cut charges for handling calls from other providers, according to the Independent Communications Authority of South Africa (Icasa).

Termination to a mobile location from next year March 1 to February 28 2012 will be 73c at peak and 65c at off-peak times, Icasa said in a statement today. The rates are currently 89c and 77c, respectively.

Termination to a mobile location from March 1 2012 to February 28 2013 will be 56c and 52c at off-peak times. Termination to a mobile location from March 1 2013 will be 40c, irrespective of time.

Icasa councillor Thabo Makhakhe said the authority expected the implemented changes would “redress the existing market failures” in the provision of wholesale voice call termination and foster greater competition.

“It is expected that these regulations will lead to a reduction in end user retail prices over time as natural price competition takes place,” he said.

Icasa would monitor trends in the retail market to ensure a fair distribution of total social welfare between licensees and consumers.

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