Communications minister Yunus Carrim says mobile operators should accept the Independent Communications Authority of South Africa’s (Icasa’s) move to chop wholesale inter-network call rates and the introduction of a regime that favours smaller operators.
Icasa on Wednesday unveiled new rates that will take effect from 1 March 2014, as well as rates for subsequent years. It has proposed drastic reductions to the rates as well as “asymmetry” that favours smaller operators, including Cell C and Telkom Mobile.
Already, Vodacom has slammed Icasa’s move, saying the level of asymmetry is “unjustified” and has “no clear basis”. It described the asymmetry as a “subsidiary for the smaller operators” and warned that Icasa had not followed due process, hinting that it could take the matter on review at the high court.
But Carrim says Icasa “consulted extensively” before publishing the final regulations on Wednesday. All those who were consulted “should accept the outcomes”.
“What some of them may lose in immediate profits will be exceeded by what they gain in the medium and long term,” Carrim says.
The minister says Icasa’s decision serves South Africa’s interests.
“We would like to see these new rates contribute to consumers and business paying less to communicate and benefitting economic growth and job creation over time,” he says. “The high costs to communicate have deterred global and domestic investment in this country.”
He adds that the new wholesale rates will lead to greater competition and reductions in the cost to communicate. — (c) 2014 NewsCentral Media