Icasa approves cellphone rate cut

2010-02-11 09:21

THE Independent Communications Authority of SA (Icasa) has approved

a cut in the rate charged by the three main cellphone operators to connect calls

between networks, Business Day reported today.

Vodacom, MTN and Cell C last month filed an agreement with Icasa

proposing a cut in the peak interconnection rate from R1,25 to 89 cents on March


Icasa rejected the plan because it would have forced it to agree to

a fixed gradual reduction over three years.

The operators submitted revised agreements without the “glide path”

on Monday and Tuesday.

With the approval of those proposals, the peak rate will fall on

March 1, as initially planned.

Icasa said the rate reduction must be passed on to consumers.

It also plans to release draft call termination regulations next


MTN’s Robert Madzonga said the speed of Icasa’s response was


“We will immediately start making all the necessary technical

changes to ensure the rates come down on March 1.”

A Vodacom spokeswoman said the company was pleased the matter had

been handled quickly.

Lars Reichelt, CEO of Cell C, said the company had “championed this

cause in the interest of consumers and believes it is a significant step forward

in creating more competition in the market”.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.