18 November 2009
Consumers can look forward to a price reduction for all peak calls from early 2010.
According to a
Business Day article, this agreement with Vodacom, MTN and Cell C was secured as a result of Communications Minister Siphiwe Nyanda’s personal intervention after negotiations led by the Independent Communications Authority of South Africa (ICASA) broke down.
Apart from the obvious benefits for consumers and businesses, reducing call costs is necessary to increase the competitiveness of the market and encourage investment. Nyanda stressed this point in his
official statement on 12 November 2009: “Communication costs in this country are resulting in a potential loss of investment in the economy. High mobile termination rates are impeding any possibility of new entrants into the market.”
The African National Congress chairman of the communications committee Ismail Vadi said, “For the first time in almost a decade there is today a tangible and positive reaction by industry to government’s call for a reduction in telecommunication costs.” He urged Icasa to do its job in finalising what he referred to as a “glide path” for further reductions over the next few years.
According to Nyanda, cellphone operators have agreed to ensure that the reduction in wholesale prices feeds through to retail level. Vodacom and Cell C will implement the cut from February 2010 and MTN on 1 March 2010 but all have agreed to introduce new, affordable retail products based on reduced rates from 1 December 2009.
