The Independent Communications Authority of South Africa (Icasa) has announced that it has adopted the Long-Run Incremental Cost Plus (LRIC+) as the cost standard for the bottom-up and top-down modelling to determine the cost of mobile and fixed wholesale voice call termination.
The agency says that it based its decision on the fact that LRIC+ would allow operators to recover a portion of joint and common costs incurred in the provision of wholesale voice call termination service through termination rates.
In addition, it says, the standard will help to ensure continued investment in electronic communications networks in South Africa.
It will also help to correct the imbalances created in 2010 wherein the 2010 Call termination Regulations applied different cost standards to different markets.
Icasa adds that LRIC+ will ensure a smooth transition from a Fully Allocated Cost standard used in 2010 to an eventual cost standard of pure LRIC.
Earlier this year, Icasa imposed new mobile termination rates (MTR) on all operators. This was challenged by MTN and, in March, the court ordered the agency to amend its regulations.
