Cell C and Telkom have welcomed the ruling by the Johannesburg High Court to implement asymmetrical mobile termination rates (MTRs) immediately, although they will be reviewed after six months.
Cell C believes the ruling made by Judge Mayat on the Mobile Termination Rates (MTR) Regulation, whereby the 2014 rates will be implemented for six months, is a step in the right direction and is positive for the consumer and the South African economy as a whole.
“The uncertainty over MTRs over the next three years will continue to make it difficult for smaller operators to confirm their business plans beyond October 2014,” Cell C says in a statement. “It also negatively impacts on the smaller operators’ ability to bring down prices to ensure all South Africans have access to affordable communications.
“Cell C will continue to cooperate with ICASA so that it can fulfil its mandate to regulate effectively to increase sustainable competition in the telecommunications sector and thereby ultimately to reduce the cost to communicate in South Africa for the benefit of consumers and the economy at large.”
Telkom states: “The court has exercised its discretion in the interest of the public to allow the mobile termination rate of 20 cents and the asymmetric rate of 44 cents to be implemented for the next six months, effective 1 April 2014.
“Within the six month period the Independent Communications Authority of South Africa (ICASA) must complete a costing exercise and follow due process. Telkom will support ICASA in completing this process effectively and efficiently.
“The company believes that the ruling is in the best interest of the industry and will go far in reducing the cost to communicate for consumers and stimulating competition in the industry.”
