The decision by mobile operator MTN South Africa to take communications regulator Icasa to court over looming cuts to wholesale call rates “should not in any way be construed as an attempt to keep the cost of telecommunications high as has been inferred in certain quarters”.
TechCentral revealed on Thursday that MTN had lodged an application at the high court in Johannesburg to have Icasa’s regulations governing wholesale call termination rates set aside. It is also seeking an urgent interdict to prevent the regulator from imposing the first cut in the rates in two weeks’ time, on 1 March, when the prices are supposed to fall by 50% to 20c/minute.
Icasa is cutting the rates, which operators charge each other to carry calls between their networks, in an effort to stimulate competition and bring down retail prices. The regulations include an “asymmetry” regime that favours smaller operators, including Cell C, with preferential rates.
MTN South Africa CEO Zunaid Bulbulia says regulations of the kind Icasa has introduced are “sometimes necessary, but only if due process is followed and it does not result in uncertainty and unnecessary interference with existing effective competition”.
“MTN believes that the decline in mobile termination rates must be driven by a fair process and appropriate costing study ensuring they are reflective of the costs incurred by all players in the market, including smaller players,” Bulbulia says.
“MTN is of the view that the regulations do not meet these requirements and it has instituted legal proceedings against Icasa. MTN has asked the court to review what has happened and to set aside those parts of the regulations which it finds are irregular. This is a right which is afforded to all companies which are affected by the actions of administrators.”
He adds that the lawsuit “will ultimately assist Icasa and all the other role players in realising that goal in a proper and commercially sustainable way”.
Meanwhile, on Friday morning website BDlive quoted Cell C acting CEO Jose Dos Santos as saying that “what MTN is really afraid of is real competition in the market, which is good for the consumer to bring prices down”.
“This is the first time the government and the regulator are working to benefit the consumer,” Dos Santos was quoted as saying. — (c) 2014 NewsCentral Media