Call termination rates to be cut

THE Independent Communications Authority of SA and telecommunications companies will embark on a process to cut call termination rates, the authority said yesterday.

THE Independent Communications Authority of SA and telecommunications companies will embark on a process to cut call termination rates, the authority said yesterday.

After a meeting between Icasa, Vodacom, MTN, Cell C, Telkom, Neotel and the Internet Service Providers Association, Icasa said the interconnect rate had been discussed.

Interconnect rates are amounts charged by networks for carrying calls on behalf of one another.

After deliberations, the meeting had resolved to embark on an industry-led process to reduce termination - or interconnection - rates, with Icasa exercising an oversight responsibility.

The meeting resolved to ensure that in negotiating a new termination rate regime they took into account competition law requirements.

The meeting decided to conclude negotiations between the operators by the end of December, with Icasa proposing an implementation date of February 1 2010.

"Meanwhile, Icasa will continue with its process in terms of Chapter 10 of the Electronic Communications Act.

"This process will entail the publication of the necessary regulatory framework pursuant to regulations defining the relevant market; evaluating the effectiveness of competition; a declaration of licensees with significant market power and the implementation of pro-competitive remedies." - Sapa

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