MTN has issued comment on the new call termination rates announced last week by the Independent Communications Authority of South Africa (Icasa).
“We have previously stated our willingness to co-operate with the Authority to work towards reducing the cost of communication,” says Zunaid Bulbulia, CEO of MTN SA.
“The regulation setting out the pertinent detail and the explanatory memorandum containing Icasa’s reasons have unfortunately not yet been published. As a result it is difficult for MTN at this time to meaningfully comment on the full context of the issue. We trust that those documents will be published as soon as possible so that MTN could analyse the content in detail.
“Once those documents have been disclosed MTN will be in a position to respond with the next steps.
“Suffice to say that the Call Termination rates announced by Icasa represents a substantial departure from the 2010 Call Termination Regulations which set an important regulatory precedent in relation to matters such as cost-orientation of the rate-setting, a managed glide path, and declining asymmetries.
“Additionally, MTN does not support the proposed mobile asymmetrical rates (that is, competitive cross-subsidies) and believe these to be unsubstantiated. MTN will also have to scrutinise and consider a number of other due process concerns once the regulation is published.
“In this regard, MTN is considering all its options,” Bulbulia adds.
