New Plan for Interconnect Fee Cuts Sent to Authority

Colocation

[February 10, 2010]

New Plan for Interconnect Fee Cuts Sent to Authority

Johannesburg, Feb 10, 2010 (Business Day/All Africa Global Media via COMTEX) -- A CUT in cellphone interconnection fees next month could go ahead as planned, after operators yesterday said they had submitted a revised version of a proposal rejected last month by the Independent Communications Authority of SA (Icasa).

Icasa turned down the original agreement, which would have seen peak charges fall from R1,25 to 89c on March 1, because it would have obliged it not to make further changes to the interconnection regime until March 2013.

The new proposal promises the same initial cut, but references to a fixed three-year gradual reduction, or "glide path", have been removed. Off-peak interconnection rates will remain at 77c.

Vodacom, MTN and Cell C - SA's three biggest cellphone operators - had submitted copies of the agreement to Icasa by yesterday evening.

Robert Madzonga, MTN's acting chief corporate services officer, sought to clarify a statement last week that MTN would lower its interconnection charges regardless of Icasa's approv al.

"Any rate changes have to be approved by Icasa in terms of the law. But it will be very difficult for Icasa not to approve it because the new agreement doesn't mention the 'glide path', and all their concerns have been adequately addressed," Madzonga said.

A Vodacom spokeswoman said the company "would really appreciate a quick response from Icasa", as it would take time to amend and test billing systems.

Lars Reichelt, CEO of Cell C, was "very confident that a reduction in interconnection rates by March 1 is achievable".

Icasa spokesman Jubie Matlou said the regulator would "attend to the agreement and review it".

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New Plan for Interconnect Fee Cuts Sent to Authority

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