South Africa / Telecommunications companies agree to reduce rates

 

PRETORIA, South Africa, November 13, 2009/African Press Organization (APO)/ — Communications Minister Sphiwe Nyanda announced on the 13 November 2009 that Vodacom, MTN and Cell C have agreed to an initial 36 cents cut in the peak mobile termination rate  from R1,25 to 89 cents  a minute. Vodacom and Cell C will implement the cut from February 2010, and MTN in March 2010, though all have agreed to introduce new, affordable retail products based on reduced rates from 1 December 2009. He also said that  the off peak rate would remain 77 cents per minute.

The Portfolio Committee of Communications held public hearings in October 2009 to have mobile operators cut their excessive and exorbitant interconnection rates. South Africans is regarded as one of the expensive countries in call termination rates in the world, currently paying R1.25 per minute during peak times for their interconnection fee from one network to another.

 

It also met with the Independent Communications Authority of South Africa (ICASA), the Competition Commission and the Department of Communications in September 2009 to discuss the interconnection rates. During the meeting the committee agreed it will propose  that the mobile and telecoms operator drop the interconnection  rates with effect from 1 November 2009 to 60 cents per minute during peak times. It further wanted the interconnection rates to be reduced by 15 cents annually on 1 November of each successive year until 2012.

 

SOURCE 

Media Institute of Southern Africa (MISA)