All set for interconnect cut

Pieter Uys

CELLPHONE interconnect rates are set to drop by 36c a minute from next week as MTN, Vodacom and Cell C drop the rate. The three mobile operators agreed to voluntarily cut the peak interconnect rate from R1.25 to 89c. The off-peak cost remains at 77c.

The agreements were filed with the Independent Communications Authority of SA (ICASA), which gave the green light for the cut, despite the fact that ICASA has not yet finalised recommendations on interconnect fee cuts. On the 'glide path' for further interconnect cuts over the next few years, the regulator said it is still in the process of introducing competition in the wholesale call termination market to lower the cost of communications in SA. It will release draft wholesale call termination regulations in March.

Final regulations are set to be published in June, after public and stakeholder input. ICASA says the processes will "at a minimum take a stance on the effectiveness of competition in the wholesale call termination market".

Lars Reichelt

The move by the cellular operators to drop rates before ICASA determines what the new rate will be in June is "voluntary", said Robert Madzonga, acting chief corporate services officer at MTN SA.

Vodacom CEO Pieter Uys added that the company "fully supports the ongoing regulatory process and trusts that ICASA will swiftly finalise the regulations in this regard".

Cell C CEO Lars Reichelt said the voluntary drop was "in the best interest of the consumer, and Cell C will do everything in its power to drive the market towards a flat and fair interconnect regime".