Cell C turns rates 'upside down'

2014-05-13 17:14

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Cape Town – Cell C has responded to the cellphone voice call reductions by rivals and aggressively reduced its call rate.

Cell C announced on Tuesday that its call rate has been reduced to 66c per minute for prepaid users, as the price war between mobile operators escalates.

MTN reduced its call rate to 79c after the regulator intervened by insisting on an MTR or Mobile Termination Rate reduction.

MTRs are what operators pay each other for calls that terminate on rival networks, but Icasa (Independent Communications Authority of South Africa) insisted on asymmetrical reductions, meaning that MTN and Vodacom had to pay Cell C and Telkom Mobile nearly double what they receive.

After court action though, Icasa backtracked from this position, though all players concede that MTRs would have to be reduced to the benefit of consumers.

Vodacom also reduced its call rate to 79c, but Cell C responded with the new rate on a per second basis.

“By turning our own rates upside down, we are telling the consumer that we are still committed to our strategy to challenge the industry and bring down call costs,” said Jose Dos Santos, Cell C CEO.

The rate will be available from 1 June and valid until 30 September, when Icasa reviews MTRs.

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