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Icasa rejects proposed reduction of interconnection rates

5 February 2010

Are cell call costs every going to come down? That’s the question consumers were left asking after Icasa decided earlier this week not to look at the mobile industry’s interconnect proposal. 

The proposal was to lower the costs the cell phone companies charge each other for calls between their networks from R1,25 to 89c.  The understanding was that this saving would be passed onto consumers.

Although Icasa’s decision may delay consumer savings, it may actually benefit consumers in the long run.  Icasa has said it costs the mobile operators 40c to carry calls over their networks. 

A Tech Central article quotes Icasa saying “It is hoped that the outcome of [new] regulations will be a reduction in call termination charges as well as fair and equitable access to existing networks for all licensees.”  If this comes into effect then consumers may benefit more than they would have done from the initial proposal backed by leading mobile operators.

Do you think this decision indicates that Icasa is keen to prove its independence and show that it is willing to regulate the sector in the public interest after the criticism which it received in parliament last year?

Leave a comment on our blog.


Written by: Emma Donovan


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